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Sourcing and Procurement 
Glossary

Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies

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Recruitment

The act of finding a person or persons to do a role within an organisation

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Regression analysis

Statistical methods used for predicting what will happen in one variable as a result of a change in another – e.g., will quality improve by X amount if the price is increased by Y amount? Quality is not a direct function of price, so it may do so, or it may not. Regression analysis looks at probabilities

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Regulatory framework

A model that policy makers and others can use to reform and apply regulations in an effective and logical way

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Relationship Model

The concept of relationship models stems from Dr. Oliver Williamson's pioneering work that classifies an organization's sourcing needs into three categories: "Market" (transactional Sourcing Business Models), "Hybrid" (relational/hybrid Sourcing Business Models) and "Hierarchical" (investment based Sourcing Business Models).

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Remanufactured Product

Any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form.

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Remedies

Contractual remedies are the provisions in a contract that enable the injured party to take action when the other party does not comply with the contract terms

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Redundant stock

Excess stock that is not required

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Regulatory Compliance

It is the process of ensuring that you are in compliance with financial reporting regulations, product restrictions, trade requirements and environmental compliance. Examples of regulatory compliance laws and regulations include the Dodd-Frank Act, Payment Card Industry Data Security Standard (PCI DSS) , Health Insurance Portability and Accountability Act (HIPAA), the Federal Information Security Management Act (FISMA) and the Sarbanes-Oxley Act (SOX).

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Relationship Management

The practice of establishing joint policies and processes that emphasize the importance of building collaborative working relationships, attitudes and behaviors. The structure, by necessity, is flexible and provides top-to-bottom insights about what is happening with the Desired Outcomes and, just as important, the relationship between the parties. Relationship management is a comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses. The goal of relationship management is to streamline and make more effective the processes between an enterprise and its suppliers. This is most definitely not a whose-throat-to-choke exercise; rather, it is the establishment of processes for communication, reporting, and improvement.

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Reliability

The ability of a system to perform as designated in an operational environment over time without failures. A common performance metric for reliability is Mean Time Between Failures. A carrier selection criterion that considers the variation in carrier transit time; the consistency of the transit time provided.

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Remedial Clauses

The relief (as damages, restitution, specific performance or an injunction) that may be given or ordered by a court or other tribunal for a wrong.

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Remittance advice

A document confirming that payment has been made

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