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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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Savings, Soft

Soft savings are intangible savings. They are realized from not spending money, or by saving time or other resources. For example: When a company is able to purchase a higher quality product (perhaps based on changing specifications or finding new sources of supply), it is assumed in the sourcing decision that there will be fewer calls to customer service. While one might assume it, this cannot be quantified at the time of awarding the agreement. Therefore, it is a soft savings, with an intangible benefit for the company.

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Scale

Increase in the amount of work that the automation technology undertakes.

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Schedule of rates

An itemised list of component parts within a lump-sum contract, or a list of individual products, giving a price for each unit

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Scope

The specific project requirements, deliverables, tasks, costs and milestones in a project.

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Scope Sweep Clause

A contractual clause where a supplier is asked to include (or "sweep") additional services under a defined Statement of Work document. These additional services are usually intended to be incidental and minor, but all too often the additional scope creates scope creep for a supplier which creates pressure on the supplier's profit.

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Scorecard

A performance scorecard is a graphic or an application that depicts the progress over time of some entity, such as an enterprise, an employee or a business unit, toward some type of goal. Several examples of scorecards can be accessed via the SIG Resource Center by starting here: http://www.sig.org/src.php?id=4446

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Scalability

An organisation’s ability to increase its production profitability

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Scanner

A device that optically scans images

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Schematic

A diagram showing the main form and features of something to help people to understand it

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Scope 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. Sometimes also referred to as Requirements Creep.

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Scope of Work

A detailed definition of the services and/or materials that a supplier is expected to provide.

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Scorecards

Reports used to track the achievement of, or progress towards, targets or goals that can include quantitative and qualitative data

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