Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Stocktake
The process of physically counting products in a warehouse to match them to the computerized inventory
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Strategic Products / Services
Also referred to as critical products/service. One of the four Kraljic Matrix quadrants. In general these are products or services that are high-tech and high volume, which are often supplied per customer specification.
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Strategic business decisions
Long-term decisions often made by senior management which affect the future and direction of an organisation
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Strategic plan
A document that includes details of the organisation’s goals and the actions to be taken to achieve them
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Sub-Contracting
AKA Sub-supplying, Second-Tier purchasing. The processes of a primary supplier or contractor utilizing other suppliers or contractors to complement their products or services in order to meet all of a customer's requirements. This is typically done in a manner that is transparent to the customer, at least administratively.
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Straight Through Processing
The end to end processing of transactions or tasks that flow through multiple points, whether cross-functionally within a company.
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Strategic Automation
Larger, more complex and transformational process automation projects that align to business strategy.
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Strategic Sourcing
Strategic Sourcing is a method of managing a company's procurement process. It involves continuously improving purchasing activities by reviewing and re-evaluating current activities against new purchasing opportunities in the market; a systematic approach to optimize value to the organization. Strategic sourcing, which is a key aspect of supply chain management, involves examining purchasing budgets, the landscape of the supply market, negotiation with suppliers and periodic assessments of supply transactions. The goal is to save money, improve acquisition, improve supplier performance and minimize risk.
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Strategic core
A category of a buyer’s portfolio in which items have major consequences for the company if they are not available when needed
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Strategic procurement
The practice of focusing on building long-term relationships with suppliers that could lead to a source of competitive advantage
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Subject Matter Expert
The individual provide in-depth knowledge of a business area and its processes, including any local variations.
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