Should Cost Analysis: Breaking down cost elements to develop a realistic estimate of what a product or service should cost.
Single Sourcing: Procuring a product or service from a single supplier only.
Spend Analysis: Analysing expenditure data to identify opportunities for cost reduction and efficiency improvements.
Source-to-Contract: A subdivision of the procurement process from the RFX stage to awarding a contract to a supplier.
Sourcing: The end-to-end process by which organisations identify and select suppliers to provide goods or services.
Spend Data: All the data generated by organisational spend which can be analysed to provide insights and inform procurement strategy.
Spend Management: A collection of techniques to track, manage, and analyse business expenditure.
Stakeholders: Internal and external people who can affect or be affected by a procurement decision.
Strategic Alignment: Ensuring procurement goals and targets are aligned with those of the wider enterprise.
Supplier Relationship Management (SRM): Managing and improving relationships between the organisation and its suppliers to ensure maximum value is obtained.
Supplier Discovery: Also known as Vendor Discovery. Market research to discover suppliers with the potential to meet a business need.
Supplier Diversification: Sourcing from multiple suppliers to lower the risk of supply chain disruption.
Supplier Consolidation: Sourcing from a reduced number of suppliers to reduce costs, reduce duplication and improve efficiency.
Supplier Diversity Program: Engaging suppliers who are at least 51% owned by diverse individuals or groups.
Social Procurement: Leveraging organisational spend to improve social outcomes.
Strategic Procurement: Procurement processes that are focused on long-term improvement rather than short-term needs.
Supplier scorecard: A tool used to track and assess performance of suppliers towards goals and targets agreed to in the contract.
Spend Threshold: In a decentralised model, the monetary threshold over which procurement will get involved in a purchase decision.
SME: Small- to medium-sized enterprise. Company sizes can be defined by revenue or number of employees.
Statement Of Work (SoW): A document that outlines activities, deliverables and timelines for the vendor providing a product or service.
Strategic Supplier: Suppliers that are core to an organisation’s business, with significant impacts if supply is disrupted.
Supplier Evaluation: The process used to assess suppliers through qualitative and quantitative techniques.
Supplier Pre-Qualification: A screening process to discover if potential suppliers meet criteria such as capability, compliance, financial stability and insurance coverage.
Supply Base: The network of suppliers that procurement manages and contracts with.
- Supply Chain: The network and process involved in goods management, from supply of raw materials to distribution and sale.