Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Statement of Intent
Within a relational contract, the buyer and supplier commitment to constructive working relationships, attitudes and behaviors. A Statement of Intent is a formal document that buyers and suppliers co-create with intended behaviors.
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Statement of Work (SOW)
A Statement of Work is a part of an overall agreement. Other parts of the agreement will describe the terms, the pricing, the service levels, and other metrics for how well the services are provided, but the SOW describes WHAT services the supplier will perform. The purpose of a Statement of Work, or SOW, is to describe the services that a supplier will perform beginning on the commencement date.
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Stewardship
Care and responsibility for minimizing a product’s environmental impact throughout all stages of the product life cycle, including end of life management
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Stock Keeping Unit (SKU)
A product with a particular set of characteristics (such as size, color, number bundled, package type, etc.).
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Stockless Purchasing
A general practice whereby the buyer negotiates a purchasing arrangement, including price, for a group of items for a predetermined time period, and the supplier holds the inventory until the buyer places orders for specific items. Blanket orders, open-end orders and systems contracts can be used as a stockless-purchasing technique.
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Statement of Retained Earnings
Explains the changes in a company's retained earnings over the reporting period. The statement of retained earnings breaks down any changes in the owners' interest in the organization. It also breaks down any changes in the application of retained profit or surplus from one accounting period to the next.
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Statistical Process Control (SPC)
A method for monitoring, controlling and, ideally, improving a process through statistical analysis. SPC can be applied to any process where the "conforming product" (product meeting specifications) output can be measured.
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Steering Council
The corporate Steering Council is comprised of key executives from the Business Units, which utilize the products or services of the Strategic Sourcing Teams and/or have a management or financial interest. The Steering Council is the approving body, which authorized initial sourcing recommendations and subsequent changes (i.e., significant pricing changes, renewal, suspension, termination). The Steering Council generally meets quarterly or on an as-needed basis.
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