Sourcing and Procurement 
Glossary

ROI (Return on Investment)

A profitability measure that evaluates the performance of a business by dividing net profit by net worth. For example: if the company's net profit is $100,000 and your total assets are $300,000, your ROI would be .33 or 33 percent.

Rate Card

A document containing negotiated prices for goods and services. For example, a buyer may negotiate a rate card that has hourly rates for software developers and/or project managers.

Re-engineering

Redesigning existing products and services

Read receipt

A response from an e-mail recipient that indicates the message was opened

Rebate Spot Market

A financial reward a supplier gives a buyer for purchasing their goods or services. Typically, a rebate is provided when suppliers hit certain volume targets.

Reciprocal

Something that is the same on both sides

Radio frequency identification (RFID) tag

Data chips that are attached to products and contain a signal for tracking and identification

Rationalisation

The process of reviewing products and consolidating variety to reduce inventory costs

Reactive

Responding to needs when they present themselves

Rebate

An amount paid back on top of any discounts that have previously been agreed

Rebate/Volume Discount

The situation when a supplier reduces their price in exchange for directing more work to the supplier. Prices remain constant within a pre-specified band of volume. If volumes increase, so can the discount. If volumes decrease, the supplier agrees to pay a higher price for each unit.

Reciprocity

The act of buying from or selling to another business in return for sales or purchases from the first organization. Illegal under the antitrust provisions of the Sherman Act.