An amount for this is treated as a cost in a company’s annual accounts, Depreciation chargeThe amount of money by which annual accounts are adjusted to reflect the cost of a reduction in the value of assets. The next wave of innovation in English vocabulary came with the revival of classical scholarship known as the Renaissance. Other practices, such adding solar panels or replacing store lighting with energy-saving alternatives can also be considered as green retailing. Closely related to daily deals, this term refers to sale events that take place for a limited time. When you’re dealing with Big Data, you’re not just looking at traffic or conversions; you’re analyzing behavior (clicks, open rates, time spent on site), demographic (Census information, income), social information (tweets, shares, etc. Also, do inventory counts regularly especially when it comes to high-theft items. The total overhead cost is spread among all products or services and this is the allocated overhead, An individual with capacityA person who is legally able to enter into a contract because of their appropriate age and state of mind, Approved supplier listA list of suppliers whose basic credentials have been checked. LandfillLandfill is a system of garbage disposal in which the waste is buried between layers of earth which has the effect of building up low-lying land, Last in-first out (LIFO)Items purchased last are sold first. These stages include introduction, growth in sales revenue, maturity, and decline. glossary of payment system terminology as a reference document for the standard terms used in ... of real-time processing is intrinsic to understanding the functioning of modern payment systems and figures in discussions among users and experts. If you’d like to stay in-the-know with the latest and greatest industry insights, be sure to check out Vend’s Top 100 list of Retail influencers. This is a technique used by retail associates to deepen their relationship with each customer. For instance, merchants can potentially use them to gain insights into customer movement, activity, and behavior as they move about the real world. If the software supplier ceases trading, the purchaser will then be provided with the source code, which will enable them to continue to use and, where necessary, adapt and update the software (provided that they can appoint appropriately skilled personnel to do so), EthicsPrinciples that govern a person’s or an organisation’s behaviour, Evaluation criteriaThe standards that a potential supplier needs to meet, Exchange rateThe value of one currency compared with another, which can vary from day to day, Executing contractsThis expression has two meanings: a. to draw up formal contracts and sign/seal them, and b. to carry out your obligations under the contract, ExpediteTo make special requests and make additional effort to ensure goods are delivered in less than the normal lead time, ExpeditingMonitoring the progress of an order to ensure stock is received as quickly as possible, ExpeditorThe person in the buying organisation who carries out the expediting function in procurement, which means following the issue of a purchase order or contract from receipt of order by supplier, through to delivery, dealing with delivery problems as they arise, ExpenditureMoney spent on goods or services, ExpensesCosts incurred from travelling, staying in hotels, eating out, etc., whilst carrying out your job, ExposureThe number/value of contracts a purchaser has with a single supplier; it is a rough guide to how much any difficulties faced by the supplier will affect the purchaser, Express termsContractual terms that are agreed between two parties and written into a contract, External stakeholdersPeople, groups or organisations who don’t belong to an organisation but are nevertheless impacted by it, or have an impact upon it, Fast-moving consumer goods (FMCG)An organisation that makes products that sell quickly and at a low cost, FeedbackInformation about the customer’s views on a product or service, Fill rateThe percentage of orders fulfilled from available stock within a set time, Financial regulationsInternal documents setting out how money is managed within the organisation, including how budgets are set, who can authorise expenditure and, often, rules around what procurement processes must be used, Financial returnThe amount of money that is either made or lost from an investment, Financial yearA twelve-month period of trading. This can relate to a specific location or to the general economic environment, Market analysisThis helps procurement professionals to understand how the supply market works, the direction that the market is going in, the level of competition and the key suppliers in the market, Market factorsElements that influence the demand for, or the price of, a good or service, Market knowledgeA detailed understanding of the influences, activities and trends in the market for a particular product or service (also known as category knowledge), Market priceThe amount that customers are charged, depending on supply and demand for the products or services, Market saturationThis usually means that there is more than enough supplier capacity to meet customer demand, Market segmentA group of consumers with common characteristics that are grouped together for the purpose of marketing a product or service, Master production schedule (MPS)A plan that a company has produced for the purposes of scheduling machinery, staffing, resourcing, etc., that is used to ensure smooth, continuous productions, Material assetsTangible items that are required to carry out an organisation’s activities, such as tools, machinery, staff and buildings, Material requirements planning (MRP)An electronic system used to plan production which includes scheduling orders, monitoring inventory and managing the production process, Materials managementThe part of the procurement process that makes sure organisations have the materials they need to operate, Maverick spend/off-contract spendWhere local staff ignore existing contractual arrangements and purchase from other suppliers. Just because you have a website, a mobile app, and a physical store doesn’t necessarily mean that you’re an omni-channel retailer. ABC FOOD CO. Key Account Management How the big boys deal with Modern Trade Fahd M KhanFahd has worked as a buyer dealing with many large and small distributors in the Middle East.The document was drafted as a guide to modernization for smaller distributors keeping in mindthe best practices in the region leading to consistent processes increasing … This then enables you to make better and more relevant sales, purchasing, or marketing decisions for that cluster of states. Then you must work with each individual customer, creating a design experience through some sort of design tool that helps customers figure out what they want. chevron10x6, PROGRAMS It can be tailored to work for procurement milestones, Gated processA project management technique in which a project or process is divided into meaningful phases with checks and evaluations at the end of each phase. If you have a fragmented customer base (i.e. This may incur additional charges, Less than truckload (LTL)A shipment containing fewer items than are required for the shipment to be eligible for full truckload rates, Letter of credit (LC)A document used between a buyer’s and seller’s bank to facilitate a transfer of funds upon performance of the contract and presentation of specified documents, e.g., signed delivery note, LiabilitiesThe amount a business owes, e.g., loans, debts, accounts payable, LiableLegally responsible for any actions taken that may have a negative consequence, Life-cycle assessment (LCA)A technique to assess the environmental impact of each step in a product’s life from raw material extraction through to the use, repair and maintenance of the product (also called a life-cycle analysis or a cradle-to-grave analysis), Life-cycle costThe total cost involved in items of inventory, including purchasing price, inward delivery, receipt and handling, storage, packing and preparation, dispatch costs, insurance and overheads, Life-cycle planA plan addressing the impacts on the various stages of staff, products and environment life cycles, Lifetime costThe total cost of ownership over the life of an asset, Linear pricingThe unit price doesn’t change according to the quantity purchased, Liquidated damagesA set sum agreed by the organisation and the supplier (the parties) and is included in the contract, which will be paid if one of the parties breaches a term of the contract, LiquidationA form of insolvency when an organisation is brought to an end, LogisticsThe control of the flow of goods or services between two points, Long tail spendThe part of an organisation’s spend profile that isn’t managed directly by the procurement department, Loss leaderA product or service delivered at a price that makes a loss for the supplier in the hope of future gains; usually used to break into a new market or to increase market share, Low-cost country (LCC),Low-cost-country sourcing (LCCS). Powered by BLE (Bluetooth Low Energy) technology, Beacons are devices that can transmit messages to other Bluetooth-enabled gizmos, such as smartphones, tablets, and smartwatches. A SKU represents all the attributes of an item, including style, brand, size, color, and more. The start date is not necessarily the date on which the contract is signed, but the date on which it comes into effect. Macy’s physical store or macys.com) to give the customer a seamless experience no matter where they’re shopping. Once they’re satisfied, shoppers can just hit the “add to cart” button and proceed to checkout. Apart from these general senses, modern is often used in a more specific way to … An enhanced understanding of the fiscal and monetary policy options available to governments. running, tennis shoes, etc. These tools facilitate interactions between buyers and suppliers through the use of online negotiations, online auctions, reverse auctions, etc. Cost centreArea of the business or budget to which the purchase needs charging, Cost driverAnything that means the cost of a good or service will change, Cost of goods sold (COGS)The direct costs for producing goods, i.e. Downloadable monthly sales report templates - in both .pdf and .xls form - to help with conducting professional reports. Unlike a regular supply chain which is more of a linear process that follows a product from one phase to the next, an Integrated Supply Chain is more collaborative and can entail joint product development, shared information, and common systems. Short for “Electronic Retailing”, this is the practice of selling goods over the Internet. It stores information about the product and is primarily used for tracking purposes. Wearable technology can have some interesting applications in retail. Zulily does announce its flash sales in advance so moms can mark their calendars and prep for the sales they wish to attend. When an item is prestigiously priced, it is meant to attract status-conscious individuals or consumers who want to buy premium products. At its most basic level, a POS system functions as a cash register or till system that lets retailers ring up sales and keep a record of those transactions in their stores. The price of the merchandise is permanently reduced to move inventory and make room for new products. This term refers to retailers that integrate their brick and mortar store with their ecommerce site. Liability of the holders of these shares is limited to the share value and the shares can be traded through an exchange, Public procurementPurchasing carried out by government departments, local authorities and some other designated types of organisation, particularly those funded or supported through taxation, Public sector organisationsService organisations run by the government and usually funded by taxes, Purchase order (PO)Legally binding documents that set out the details of the transaction that the supplier and buyer have agreed, PurchasingThe processes concerned with acquiring goods and services, including payment of invoices – it is part of the wider procurement process, Qualified bidA bid where the potential supplier has ‘exempted themselves’ from one or more of the requirements of the tender (i.e. A few examples of IoT in action include merchants using in-store devices to track real-time shopping behaviors and send tailored offers to customers. bring in a ton of foot traffic into your vicinity, integrate their brick and mortar store with their ecommerce site, Beacons can also be used for in-store analytics purposes, CRM software to collect and track customer data, Retailers can get rid of dead or unmoving inventory, convenient capabilities such as emailing receipts and processing mobile payments, deploy unique and more targeted strategies, planning how they’re displayed and organized can maximize sales, ten ways to save money on your pop-up store, build loyalty and forge long-term relationships with customers, prevent shrinkage by beefing up security in your store, Peer-to-peer sales platforms (eBay, Etsy, Amazon Marketplace), Social network-driven sales (Facebook, Pinterest, Twitter), Peer recommendations (Amazon, Yelp, JustBoughtIt), User-curated shopping (The Fancy, Lyst, Svpply), Participatory commerce (Threadless, Kickstarter, CutOnYourBias), Social shopping (Motilo, Fashism, GoTryItOn). So what is Modern Trade? This refers to the practice of displaying or putting together products from different categories to drive add-on sales. IoT is the concept of getting objects such as cars or household appliances to “talk” to each other. This refers to the environmentally-friendly practices that retailers get into. product or service) and break it apart into modular elements, similar to LEGO blocks. Download our free guides, packed full of usable advice, practical tips and real-life examples. In retail, AR can be implemented in several ways, including shoppable catalogs, apps that let you see in-store deals when you point your phone’s camera towards a specific direction, or even fitting room simulators. Relevant logistics costs, such as cars or household appliances to “ recognize ” devices based on modern materials steel. Love stores that offer click-and-collect because it ’ s sometimes called dead inventory to... 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