What is a CPO & how does it work?

A CPO is a centralised procurement organisation (or a central purchasing office or organisation), and it’s pretty much what it sounds like: a single business unit designed to handle the bulk of a company’s procurement and arguably one of the best investments a business can make to consolidate spend and regain control of its supply chain.

What is a supply chain network?

The term ”supply chain” may sound complex, but it just means a system that allows a manufactured product to reach a consumer in one or more steps. A typical supply chain network for a product will consist of a raw materials supplier, a manufacturer, a distributor, a retailer, and a consumer.

What does supply mean in economics?

Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. This relates closely to the demand for a good or service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits.

What is short-term supply?

Short-term supply is the inventory immediately available for consumption. When short-term supply has been exhausted, consumers must wait for additional manufacturing or production for more goods to become available. Short-term supply is the maximum amount consumers can immediately purchase.