Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Johari window
A technique that can be used to help an organisation (or person) improve their understanding of their relationship with themselves and others
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Joint contracts tribunal (JCT)
A family of standard contracts used in construction in the UK
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Just in time (JIT)
A system that works alongside Lean manufacturing. In order to reduce waste in the supply chain, JIT makes sure that stock is not held unnecessarily in inventory
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KPO
Knowledge process outsourcing (KPO) is when complex expert services are performed by workers in a different company which may be in the same country or in an offshore location to save cost. Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff. KPO firms, in addition to providing expertise in the processes themselves, often make many low level business decisions%u2014typically those that are easily undone if they conflict with the objectives or policies of their customer, the outsourcing company.
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Kanban
A production method where instructions are sent from one operation to the next on a card, including specific items and quantities. (Translated from the Japanese, it literally means ‘signboard’ or ‘billboard’). The aim is to reduce waste through over-production
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JIT
An abbreviation for %u201CJust In Time,%u201D and referring to a scheduling system that minimizes inventory by having material arrive just as it is about to be put in use.
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Joint Venture
A Joint Venture (JV) covers a wide range of collaborative arrangements in which two or more businesses decide to share costs, management, and profits with a common goal. A JV is a legally binding business arrangement where each party contributes capital, intellectual property, personnel and other resources to design and implement a new business.
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Junkyard Dog Syndrome
One of Vested's 10 Ailments describing when the decision to outsource usually means jobs are lost as the work and jobs transition to the outsource provider. Employees hunker down and stake territorial claims to processes that "absolutely must" stay in house.
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Just-In-Time (JIT) System
The basic JIT concept is an operations management philosophy whose dual objectives are to reduce waste and to increase productivity. Operationally, JIT minimizes inventory at all levels; materials are purchased, transported, and processed "just in time " for their use in a subsequent stage of the manufacturing process.
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Kaizen
An approach involving continuous improvement. A long-term approach, that seeks to make small changes in processes to improve quality and efficiency
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Key Man Provision
A contract clause that spells out requirements for the supplier and/or buyer to name key positions or even individuals in the contract as "key" (or essential) to the success of the relationship. Often a key man contract clause states certain individuals should stay in a role ranging from 18 month to 48 months.
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