Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Requirements Creep
Refers to uncontrolled changes or continuous growth associated workscope. Very common when buying services such as construction or software development. Scope creep can occur because the buyer adds on additional specification or when the scope is not properly defined, documented or controlled. It is generally considered harmful. See also Scope Creep.
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Residual waste
Waste that is not able to be recycled or re-used and which ends up in garbage dumps called landfills
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Response
The offer received from a vendor in response to a solicitation. A response includes submissions commonly referred to as "offers," "bids," "quotes," or "proposals."
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Retained Organization
Organizational units and/or employee roles, retained within the client organization, providing the client interface for the provider.
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Return on investment (ROI)
A measure of profitability that indicates whether a gain or loss has been generated compared with the initial cost
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Reverse Auction
A type of auction in which sellers bid for the prices at which they are willing to sell their goods or services. In a forward auction, which is opposite of a reverse auction, a seller puts up an item and buyers place bids until the close of the auction, at which time the item goes to the highest bidder.
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Requisition
An internal document that a functional department (stores, maintenance, production, etc.) sends to the purchasing department containing details of materials to meet its needs, replenish stocks or obtain materials for specific jobs or contracts.
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Responder
One who submits a response to a solicitation document. Also referred to as Bidder, Respondent, Supplier or Contractor.
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Responsibility Matrix
Chart that describes the participation by various roles in completing tasks or deliverables for an outsourcing arrangement.
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Return on Net Assets (RONA)
The return on net assets (RONA) compares net profits to net assets to see how well a company is able to utilize its asset base to create profits. To calculate the Return of Net Assets you divide your net profit by your fixed assets plus your net working capital. Fixed assets are property, equipment, etc. Net working capital is figured out by subtracting your current liabilities from your current assets.
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