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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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Dependent demand stock

Raw materials or component parts whose demand (ordering levels) is influenced by demand for the finished product

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Depreciation

The reduction over time in the value of an asset held by a company, often due to wear and tear. An amount for this is treated as a cost in a company’s annual accounts

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Depreciation of assets

An accounting method of spreading the cost of an asset over a defined period, usually several financial years

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Design Thinking

Design thinking is a formal method for practical, creative resolution of problems and creation of solutions, with the intent of an improved future result. In this regard it is a form of solution-based, or solution-focused thinking.

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Design specification

A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured. It is typically part of the Scope of Work, Workscope, Statement of Work, or Requirements in an RFx document. Most often used in Request for Proposals (RFPs).

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Destination

The place to which a shipment is consigned.

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Deploy Phase

Releasing the automated solution into the live production environment.

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Depreciation charge

The amount of money by which annual accounts are adjusted to reflect the cost of a reduction in the value of assets. This money is put aside to purchase a replacement for the asset at a future date

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Design Phase

Involves creating the solution elements ahead of moving into actual development.

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Design of experiments (DOE)

A systematic method to determine the relationship between factors affecting a process and the output of that process. In other words, it is used to find cause-and-effect relationships.

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Desired Outcomes

A term that defines collaboratively negotiated strategic business outcomes expressed in terms of a limited set (ideally no more than 5) of high level success measures.

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Develop Phase

The undertaking of all the activities defined in the delivery plan to make the automation available for process execution.

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