Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Audit trail
A record, history or series of documents that provide evidence of a sequence of processes that led to an outcome
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Automation Lead
Individual responsible for running the COE and is responsible for the ongoing automation strategy.
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Average Handling Time
The average duration of one transaction, typically measured from a customer's initial contact through too completion of the transaction, service or call.
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Award Fees
Fees paid at the conclusion of a fixed-duration agreement for achieving a desired goal.
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BATNA
"Best Alternative To a Negotiated Agreement " or a fallback position should your minimum positions not be met by the Supplier. BATNA provides a course of action to take if negotiations fail and an agreement cannot be reached, such as awarding to a new supplier or maintaining status quo.
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Automatic Renewal
A component or clause of a contract allows an agreement to continue for a defined period if the existing agreement isn't renegotiated within a specified time measured from the expiration of the current contract. Also known as the silent extension or evergreen clause.
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Automation Toolset
The suite of automation technologies available to organisations
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Avoidable Cost
Part of the cost of an activity that could be saved by not performing that activity. These are sometimes also considered "soft savings".
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Award Term
An incentive in the form of contract extension. When supplier meets annual goals, the contract is extended for an additional length of time. See also Contract extension.
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Back Order
Items ordered but not shipped due to a stockout or some other reason. This is widely used as a measure of supplier performance and customer service (e.g., percent back orders, number of occurrences, number of back order days).
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