Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Lean manufacturing
Processes that improve efficiency by reducing wasted time, materials and money
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Lease
A contract conveying from one entity to another the use of real or personal property for a designated period of time in return for payment or other consideration.
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Least Acceptable Agreement (LAA)
The minimum the team is willing to accept on any negotiating parameter.
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Legacy Services
A term that used to describe that state when the vendor is only providing the services in the same manner that the customer provided them. Along with legacy services is the term legacy service levels. This is saying that the vendor is going to provide the services at basically the same level of service that the customer was providing prior to the outsourcing. This makes sense because the vendor is not going to be able to provide a higher level of services if it's really only doing the same thing the customer was doing prior to the outsourcing.
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Less than truckload (LTL)
A shipment containing fewer items than are required for the shipment to be eligible for full truckload rates
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Lean Processes
A method used to reduce unnecessary steps or activities in manufacturing or services and thereby improve efficiency and reduce error.
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Learning curve
A graphical representation of how when greater numbers of an item are produced, unit costs reduce
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Lease-or-Buy Decision
The decision concerning whether to contract for the possession and use of an asset owned by another party for a period of time, in return for lease payments, as opposed to purchasing the asset.
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Ledger
A book or computer file used to balance accounting figures such as deposits and receipts
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Less than container load (LCL)
A single delivery of goods that does not completely fill a container. This may incur additional charges
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