Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Supplier Segmentation
The process of classifying a supplier's relationship to the company. Classifications include commodity, strategic, standard or key.
Source:
Supply
How much or how many of a product or service an organisation has to sell, or, the act of physically getting something from the supplier to the buyer
Source:
Supply Base Strategy
A systematic and analytical approach for identifying the proper mix of suppliers in a specific spend category. A supply base strategy is one component of an organization's overall sourcing strategy.
Source:
Supply Chain Analytics
In this type of analytics the first thing is to capture useful data in information systems such as ERP. Based on that, various processes are prepared such as forecasting, demand planning, sourcing, production and distribution. Finally, KPIs are determined to create supply chain specific dashboard and supplier scorecards.
Source:
Supply Chain Management
The organizational structure and management function that includes all facets of the acquisition and delivery of material from the supplier to the final customer. The purpose of the structure is to eliminate inefficiencies, facilitate rapid communication, to minimize inventory and to minimize delivery time throughout the structure.
Source:
Supplier inspection
A way of testing a supplier’s product or service to confirm compliance with the standard set by the organisation
Source:
Supplier relationship manager (SRM)
The role responsible for developing and maintaining supplier relationships
Source:
Supply Base
The designated suppliers that provide goods or services in a spend category. Also referred to as providers, solution providers, vendors, contractors or potential bidders.
Source:
Supply Chain
One of the major business functions of any organization. The function typically is responsible for acquisition of required materials, services and equipment used in the organization. The entire supply chain consists of the steps from identification of a need, design of a specification of a product or service, procuring the object, receipt, inventory, warehouse, distribute, install, use, end of life process, disposal, to payment of the invoice. The Supply Chain encompasses the following: Identification of Customer Needs; Design and Engineering; Planning ; Procurement; Supplier Time; Inbound Transport; Warehouse; Delivery; Payment; Maintenance, Utilization, Repair; and Installation and Disposal.
Source:
Supply Chain Cost Model
A numerical representation of the costs associated with a particular supply chain process.
Source:
Supply Market
The combined supply of everyone willing and able to sell a good or service in a market.
Source: