Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Vendor-Managed Inventory
A continuous replenishment program that uses the exchange of information between a buyer and supplier to allow the supplier to manage and replenish product at the buyer's location. Typically the goal is to reduce inventory levels by streamlining demand management and just in time deliveries.
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Venture capitalists
Specialist companies that invest in businesses (particularly start-ups)
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Verbal communications
Using the spoken or written word to convey information, for example face-to-face or on the phone, reports, e-mails or posters
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Vertical Integration
A hybrid relationship that combines an Outcome-Based economic model with a relational model incorporating the Nobel award-winning concept of behavioral economics and the principle of shared value. Using these concepts, companies enter into highly collaborative arrangement designed to create and share value for the buyer and supplier above and beyond conventional buy-sell economics of a transaction-based agreement. In short, the parties are equally committed (Vested) to each other's success.
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VestedÆ Business Model
Vested is a hybrid business model, movement and methodology that enables true win-win relationships in which parties are invested in each other's success. Vested combined a relational contract with an outcome-based economic model. When applied, a Vested approach fosters a highly collaborative environment that sparks innovation, resulting in transformation, improved service and reduced costs. Vested is a progressive approach that takes business relationships to the next level, sparking innovation, improving service and reducing costs.
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Virtual Agents
Text based or voice based chatbots usually deployed for real time interaction with customers or within an organisation.
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Vendors list
A list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. Created during the first stage of the Strategic Sourcing Process. It is also sometimes called the Supplier List or Potential Supplier List.
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Verification Test Plan
Identifies all relevant scenarios to test to ensure the process built is robust.
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Vested 10 Elements
Research from the University of Tennessee has identified 10 essential "elements" that follow Five Rules. Buyer and supplier relationships that structure their agreement based on the 10 elements were found to have a high degree of collaboration and success in driving transformation and innovation.
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Virtual Workforce
A mix of humans and IPA tools usually in a network of several locations, technologically connected, undertaking defined work activity
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