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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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Closed system

A system or process that, once started, does not allow new entrants. A framework agreement might have multiple buyers and multiple suppliers, but once set up no additional buyers or suppliers can be added to it

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Cognitive Computing

The development of computer programs that can teach themselves to grow and change when exposed to new data. Sometimes referred to as "machine learning".

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Cohesiveness

Working together effectively

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Collateral

A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay (originally supplied as "accompanying" security).

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Combustion

The process of burning a fuel so it reacts with oxygen to release energy

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Commercial Risk

Commercial risk is related to the uncertainty with regard to the price we will pay and the costs that we will incur when having outsourced activities to the supplier.

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Co-operative

A people-centred enterprise owned and run by and for their members, which either reinvests any profits or returns it to their members

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Cognitive Technologies

Technology that can be "trained " to identify patterns or text and make probability-based algorithmic decisions on how and what to process.

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Collaborative

Working together for mutual benefit

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Collusion

Where two or more potential suppliers (or the purchaser and one or more suppliers) secretly co-operate to undermine the competitiveness of a tender process

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Commercial

To do with business, intended to make a profit

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Commodity

Any physical item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability. Also referred to as a "good" or "supply item".

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