Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Single Source
An acquisition where, after a search, only one supplier is determined to be reasonably available for the required product, service or construction item.
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Single administrative document (SAD)
A standardised customs form used to control goods being moved in and out of the EU, Switzerland, Norway, Iceland, Turkey, Macedonia and Serbia
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Slope of Enlightenment
More instances of how the technology can benefit the enterprise start to crystallize and become more widely understood. Second- and third-generation products appear from technology providers. More enterprises fund pilots; conservative companies remain cautious.
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Small- and medium-sized enterprise (SME)
A small- or medium-sized enterprise that is independent of other companies and is defined in terms of the number of employees it has
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Should Cost Model
A tool used to determine what a product is expected to cost. When completing a should-cost model, the sourcing organization is assessing the costs of the necessary labor and materials, as well as any expected labor rates and profit margins.
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Silo thinking
When people within a department do not share their knowledge or ideas with others outside the department
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Single SourceSix Sigma
A singe source often refers to where a supplier receives all the business from a buyer for an item even though there are other suppliers who offer the same item with the same specifications. Orders given to a single source obtain the advantages of economics of scale, quanitity discounts, pin-pointing responsibility, and elimininating the need for extra tooling.
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Six Sigma
Six Sigma is a management practice developed by Motorola that is in widespread use today. Six Sigma is a structured process that identifies and eliminates the causes of defects and errors. Originally used in manufacturing, "lean" Six Sigma is the elimination of unnecessary steps in business processes as well as quality improvement.
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Slotting (or profiling)
The process of identifying the most efficient placement for each item in a warehouse
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Smoothing
Using an average for volume to eliminate peaks and valleys in demand.
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