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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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Intangible cost

A cost to an organisation that is known but cannot be quantified

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Intellectual Property (IP)

Intellectual property refers to creations of the mind: inventions, literary and artistic works and symbols, as well as names and images used in commerce. Intellectual property is divided into two categories. Industrial Property includes patents for inventions, trademarks, industrial designs and geographical indications. Copyrights cover literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs.

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Intense precipitation

Heavy rain or snow

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Intermodal

Shipments that utilise different modes of transport, e.g., a shipping container carried by lorry to a dock where it is loaded aboard a ship

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Internal Rate of Return (IRR)

A financial metric for cash flow analysis, often used for evaluating investments, capital acquisitions, project and program proposals, and business case scenarios. IRR is sometimes referred to as "economic rate of return" (ERR).

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Internal rate of return

The means by which an investment or project is evaluated financially. It is the interest rate at which the net present value of cash flows is equal to zero

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Integrated report

A short document about an organisation’s features and how this creates value in the short, medium and long term

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Intelligent Process Automation

Evolving set of software technologies that can be used singly or in combination to automate repetitive, rules-based, routine tasks

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Interest rate

The percentage of money that is required to be paid back in addition to money borrowed, or the percentage of money that is gained in addition to money saved

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Internal Cost Drivers

Costs internal to the organization controllable by internal actions, including in part:
Inventory - Lead times, service level requirements, planning accuracy, location, special storage needs, etc.
Materials - Specifications, standardization practices, bidding practices, purchasing leverage, etc.
Maintenance - Task time, task frequency, cost of failure, etc.

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Internal Stakeholders

The groups or individuals who are directly involved in the creation, planning and implementation of sourcing initiatives. For example, the company's employees.

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International Integrated Reporting Council (IIRC)

A global coalition that promotes reporting about value creation

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