Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Transformation
Transformation is the act of performing re-engineering, process improvement and innovation activities to transform services to a state that will achieve long-term objectives and benefits for both parties. Transformation usually results in steady state service levels becoming effective, pricing model being validated and provider achieving process leverage.
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Transformational step change
An organisational change that is significant and carried out over a period of time
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Transparency
Open, public; having the property that theories and practices are publicly visible, thereby reducing the chance of corruption.
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Truckload (TL)
A quantity of freight to which truckload rates apply or a shipment tendered as a truckload; A highway truck or trailer loaded to its carrying capacity. See less-than-truckload.
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Turnaround Time
The amount of time taken to complete a process or fulfil a service.
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UCC
An abbreviation for Uniform Commercial Code. The UCC is an act passed with slight modifications by each state in the United States that establishes legal guidelines for commercial transactions.
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Transformational Benefits
The return on investment from undertaking operational transformation through IPA
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Transition
The tasks that are necessary to migrate the service performance from the customer's operating environment to the supplier's operating environment. The transition will almost always involve significant knowledge transfer activities to help the vendor get up to speed on the customer's environment. There may also be some initial infrastructure improvements but usually there's only marginal improvements during the transition.
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Trough of Disillusionment
Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investment continues only if the surviving providers improve their products to the satisfaction of early adopters.
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Turn and Earn
A financial tool that compares the amount of inventory to profit. It helps evaluate Purchasing's decisions that involve quantity discounts. It is calculated by multiplying inventory turnover times the percentage of gross margin.
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UNSUCCESSFUL VENDOR
A vendor whose response is not accepted for reasons such as price, quantity, failure to comply with specifications, etc.
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