Buying and selling in a complex world - Purchasing in the value chain
5 important questions on Buying and selling in a complex world - Purchasing in the value chain
What is the difference between direct and indirect purchases?
Indirect purchases are non product-related, purchase of products/services for internal use. Necessary goods to keep the business alive. 15 to 27% of total revenues goes to this. E.G. Travel, office supplies, repairing equipment.
Which 3 criteria needs to kept in mind when investing in something?
- The average rate of return= Measures the profitability of the investments, is taken from the financial statements.
- Discounted cash flow= A way to calculate the value of the company.
What is capex or capital expenditure?
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What is opex or operational expenditure?
Explaination goods and services
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