Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Fully operational
Complete and working to full capacity, i.e. a factory would be built and producing goods
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Game Theory
A branch of applied mathematics that is used in the social sciences, most notably in economics, as well as in biology, engineering, political science, international relations, computer science, and philosophy. Game theory attempts to mathematically capture behavior in strategic situations, in which an individual's success in making choices depends on the choices of others, a sort of "Win-Win" strategy. Game theory attempts to look at the relationships between participants in a particular model and predict their optimal decisions. This is also sometimes referred to as Gamification.
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Gap Model
The Service Quality Model, also known as the Gap Model, was developed in 1985. It highlights the main requirements for delivering a high level of service quality by identifying five %u2018gaps' that can lead to unsuccessful delivery of service. The first four gaps are referred to as; Knowledge gap, Design gap, Delivery/Performance gap, and Communications gap. The fifth gap is the total accumulation of variation in gaps 1 through 4 and represents the difference between expectations and perceived service,
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Glass Ceiling
A barrier preventing the next level of progression to true transformative automation.
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Global Business Services (GBS)
GBS is an evolution of the shared services model that goes beyond transactional functions to deliver higher-value work. GBS leverages global opportunities across multiple locations and manages them accordingly to provide services. GBS is an integrated and mature evolution of the shared services model. Its services and objectives are similar to those as of any global multi-functional shared services organization. However, GBS runs activities as a business and operates as a partner rather than service provider.
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Functional Aggregator (FA)
An associate who specialize buying the same material or service across multiple business units, and are generally assigned to manage the spend for a specific commodity or service across multiple business units.
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Gainshare/Cost Savings Incentive
A monetary incentive where a buyer and supplier share in costs savings. The focus is on driving out costs that are of limited value and sharing the costs savings. The concept provides an incentive to both the buyer and supplier organizations to focus on continually re-evaluating, re-energizing, and enhancing their business relationship. All aspects of value delivery are scrutinized, including specification design, order processing, inbound transportation, inventory management, obsolescence programs, material yield, forecasting and inventory planning, product performance and reverse logistics. The focus is on driving out limited value cost while protecting profit margins.
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Gantt chart
A type of chart that shows the schedule of a project. It can be tailored to work for procurement milestones
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Gated process
A project management technique in which a project or process is divided into meaningful phases with checks and evaluations at the end of each phase. The project cannot continue unless a gate is passed
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Glidepath
Refers to a formula that defines the asset allocation mix of a target date fund, based on the number of years to the target date. The Glidepath creates an asset allocation that becomes more conservative (i.e., includes more fixed-income assets and fewer equities) the closer a fund gets to the target date. The term is derived from an aircraft's line of descent to land.
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Global Sourcing
Global sourcing is the process of sourcing goods and services from the international market across geopolitical boundaries. It aims to exploit global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, cheaper raw materials and other economic factors like tax breaks and low trade tariffs.
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