Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Subjective
In the context of data, something is subjective if it is a matter of opinion, which may differ from one person to another
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Substitutes
Goods which, as a result of changed conditions, may replace each other in the market
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Supplier Development
The process of developing a supplier relationship to continue generating value after the implementation of a Strategic Sourcing effort.
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Supplier Market Analysis
A technique which enables a contracting authority to understand how a market works, the direction in which a market is heading, the competitiveness of a market, the key suppliers and the value that suppliers place on the contracting authority as a customer. This can help inform, improve and shape the tendering process leading to improved procurement outcomes such as better value for money or service, reduced prices or achieving whole of government outcomes.
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Supplier Performance Program (SPP) and SPP Reports
A program through which the performance of sourced suppliers is measured. Performance is monitored and reported monthly. Suppliers achieve performance levels according to their performance (Gold, Silver or Bronze) and are notified quarterly.
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Supplier Relationship Management (SRM)
A process that enables both parties (buyer and supplier) to monitor the effectiveness of communication and ensure continued engagement of all parties.
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Subsidiaries
A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company or holding company. A subsidiary is a company that is partly or completely owned by another company that holds a controlling interest in the subsidiary company.
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Subtract or outsource
To employ another organisation to fulfil a contract or part of a contract
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Supplier Diversity Program
An organization's documented intent and program to provide economic development opportunities for small, diverse business enterprises, which include, but are not limited to, small enterprises, minority, women and disabled veteran-owned suppliers.
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Supplier Performance Management (SPM)
A comprehensive system for monitoring, managing, controlling and influencing a supplier's provision of a product or service to meet a company's business needs and goals. SPM can also include considerations to orchestrate the buying side of the relationship by providing a mechanism to receive supplier feedback. SPM serves as a continual communication protocol to provide insight into a company's buying behavior, transactional processes, and overall relationship management techniques.
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Supplier Relationship Management
The practice of creating mechanisms to increase the efficiency and effectiveness of how a company works with its service providers. The goal of SRM is to create effective processes for working together, which in turn yields lower costs of doing business. Some SRM efforts are designed to build deeper relationships that foster improved collaboration efforts and innovation. A benefit of SRM is to develop a common frame of reference for companies and services providers, thus establishing unified business practices and terminology for how the organizations work together.
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Supplier Screening Survey
An informal questionnaire sent out to suppliers for the purpose of determining those that have the potential to meet the sourcing team's objectives. It is typically short, simple and structured around screening criteria - those characteristics or capabilities that the supplier should have to meet sourcing objectives. This will typically reduce the number of suppliers to be further investigated through RFI's or RFP's.
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