Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
OEM (Original Equipment Manufacturer)
The rebranding of equipment and selling it under another name, or as a component of another product. OEM refers to the company that made the products (the "original" manufacturer), but with the growth of outsourcing, it eventually became widely used to refer to the organization that buys the products and resells them. This term has two generally acceptable definitions which are actually opposites of each other and may vary by industry: 1) The OEM reseller is often the designer of the equipment (which is made to order). An example would be a computer manufacturer OEM which includes components built by other manufacturers; 2) Companies that make products for others to repackage and sell, or to incorporate into a final assembly. An example would be an OEM manufacturing tires for use on automobiles.
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OLAs (Operational Level Agreements)
Internal "back to back" agreements that define how the buyer and supplier will work together. An OLA often includes hours of operation, responsibilities, authorities, response times, supported systems, etc. OLAs tend to be more technical than SLAs since they define IT supporting IT. Not every SLA requires unique OLAs, and just a few key OLAs can help resolve the silo problem. However, it can be difficult to implement OLAs
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OSHA
The Occupational Safety and Health Administration. Created by the OSHA Act.
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Off ramp
A term used to describe exit management clauses in a contract. Off ramp clauses provide the buyer flexibility. The most common off ramp clauses are termination for convenience and termination for cause. Performance-Based and Vested Sourcing Business models should have more comprehensive exit management plans than these two simple off ramp clauses.
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OPEN MARKET REQUISITION (OMR)
The requisition document type used in MAPS Procurement to request the purchase of a non-contract item when the requested item's estimated cost exceeds the authority for purchase level of the buyer. An OMR conveys the request for purchase to the person with the authority to purchase. The resulting order type is most often the Purchase Order Requisition (POR).
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Objective
In the context of data, something is objective if it is pure fact, with no opinion or interpretation attached to it
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