Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Business Continuity Plan (BCP)
A defined operational plan that is designed to be implemented in the event of disruption of normal operations. Disruptions may be the result of natural disasters, civil or labor unrest, etc.
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Business Function
An entity or defined function within an organization such as HR, Marketing or Finance.
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Business Model
The rationale for how an organization creates, delivers and captures value. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs. A Sourcing Business Model is a type of business model that is applied specifically to sourcing.
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Business Objective
A result that an organisation aims to achieve through the adoption of automation.
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Business Process Outsourcing (BPO)
The practice of outsourcing non-core internal functions to third parties. Functions typically outsourced include logistics, accounts payable, accounts receivable, payroll and human resources. Other areas can include IT development or complete management of the IT functions of the enterprise.
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Business Reviews (BRs)
A periodic assessment of the commercial context of a business, its mission statement, goals and strategic plan. The review cadence varies, but typically is held each quarter of the calendar year and are attended by senior managers of functional areas from both supplier and customer organizations. Often referred to as Quarterly Business Reviews.
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Business Driver
Key inputs or reasons that drive an organisation to achieve specific results.
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Business Metrics
Standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed.
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Business Model Mapping
The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs
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Business Problem
Challenges faced by a business that can be solved through the adoption of automation technologies.
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Business Requirements
The needs of business groups, business units or even stakeholder users who consume the goods or services that are procured.
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Business Unit
A part of an organization that is managed like a separate business with its own profit and loss financial reporting. For example, in the General Motors group Chevrolet is a business unit.
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