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Sourcing and Procurement 
Glossary

Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies

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Category Team

A category team is a network of cross-functional and global procurement/sourcing category owners and is accountable for driving performance in cost, quality and delivery of a given product or service category. They have local, regional and/or worldwide responsibility for sourcing and supply performance of a common Category group. Other business functions like Operations, Engineering, Finance, R&D, Supply Chain, and Marketing participate as needed.

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Caveat Emptor

Latin for let the buyer beware.

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Center of Excellence (Distributed)

This is not stridtly a COE but a structure whereby each business unit or geography has its own IPA capability and governance.

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Centralization

Bringing activites together in one place to be controlled under a single authority.

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Centralized Purchasing

An organization%u2019s structure where all buying is conducted and authorized by one department and in one location. This compares with a decentralized system where buying many be accomplished at several locations. A modified structure allows certain items or categories of items to be handled locally and others to be controlled from one central location.

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Certificate of Compliance

A document, often required by an importer or governmental authorities, attesting to the quality or purity of commodities. The origin of the certification may be a chemist or any other authorized body such as an inspection firm retained by the exporter or importer.

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Category aware

Understanding the market and risks associated with a particular commodity or service

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Center of Excellence (Centralized)

A COE that provides capability to meet all IPA requirements across the organization.

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Center of Excellence (Federated)

Capabilities are spread across the organization but will work from a centralised model for at least methods and governance.

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Centralized

Refers to the bringing together of a functional group. For example, a centralized Shared Service Organization or centralized procurement function.

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Centre of Excellence

The unit or team responsible for overall management of the process automation capability.

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Certificate of origin (COO)

A document required by customs officials, identifying the country of origin of imported goods, and certified by the supplier’s country’s designated authority, to authenticate the source of the goods

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