Procurement glossary: Strategic procurement
191 terms on Strategic procurement.
A
- ABC analysisABC classification · ABC analysis · Pareto analysisABC analysis is a classic method in procurement and materials management for classifying items, suppliers or order lines according to their importance to busine
- ABC/XYZ Classification CycleABC/XYZ analysis cycle · ABC-XYZ matrix · combined ABC/XYZ classificationThe ABC/XYZ classification cycle describes the regular repetition of the combined value analysis (ABC) and demand variability analysis (XYZ) across the company'
- Agile procurementagile purchasing · agile procurement · adaptive procurementAgile procurement describes an approach in purchasing in which procurement decisions are made iteratively, quickly and closely aligned with the current needs of
- Agile ProcurementAgile Procurement · Agile Purchasing Management · Agility in ProcurementAgile procurement refers to the application of agile principles from software development to procurement: short iteration cycles, close collaboration with stake
- Alternative offersAlternative offer · Alternative bid · Variant offerAlternative offers are alternative proposals to a main offer that bidders may submit additionally in tenders or RFQs. They deviate from the required specificati
- Alternative SourcingSecond Sourcing · Emergency Procurement · Alternative SourcingAlternative sourcing refers to the targeted identification, assessment and use of substitute sources for materials, components or services when the primary sour
- Award CriteriaAward Criteria · Evaluation Criteria · Awarding CriteriaAward criteria are the attributes defined in the award or procurement process on the basis of which bids are evaluated and the contract is awarded. In addition
- Award DecisionVergabeentscheid · Award Decision · Awarding DecisionThe award decision is the formal resolution determining which bidder or supplier a contract is awarded to. It concludes the tendering, bid evaluation and assess
- Award scenarioVergabeszenario · Award Scenario · AufteilungsszenarioAn award scenario describes, in procurement controlling, the simulated or planned variant of how contract volume is to be distributed among suppliers in a tende
B
- Basket AnalysisSpend Analysis · Spend-Analyse · Einkaufsportfolio-AnalyseBasket analysis (spend analysis) is a classic method in strategic procurement used to systematically capture all goods and services procured by an organisation
- Benchmarking in ProcurementEinkaufsbenchmarking · Purchasing Benchmarking · Procurement BenchmarkingBenchmarking in procurement is the systematic comparison of prices, terms, processes and supplier performance against internal references, competitors or market
- Best and Final Offer (BAFO)BAFO · Best and Final Offer · Final Bid RoundBest and Final Offer (BAFO) denotes the final negotiation stage of a procurement or award process, in which selected bidders submit their offers in a final vers
- Bid evaluation rating scalesbid scoring scale · scoring levels · evaluation levelsBid evaluation rating scales are defined gradations within an evaluation scheme, used by buyers to systematically classify supplier bids against criteria such a
- Bidder InterviewBidder Hearing · Bidder Meeting · Negotiation RoundThe bidder interview is a structured negotiation meeting between procurement and potential suppliers as part of a tendering process. It serves to verify quotati
- Bidder QuestionsBidder Questions · Bieteranfragen · ClarificationsBidder questions are written enquiries from companies wishing to participate in a tender or bid submission, addressed to the issuing procurement function. They
- Bundling LeverVolumenbündelung · Volume Bundling · Aggregation HebelThe bundling lever describes the savings generated when a company consolidates previously distributed purchasing volumes and negotiates them jointly. It is rega
- Business Continuity Plan (BCP)BCP · Business Continuity · contingency planA Business Continuity Plan (BCP) is a documented contingency plan that ensures a company can maintain or promptly restore critical processes in the event of dis
C
- Category CharterCategory Mandate · Category Mandate · Category Management CharterThe category charter is a written mandate document that bindingly defines objectives, responsibilities, decision-making latitude and boundary conditions for a p
- Category GovernanceProcurement Governance · Category Governance · Category CouncilCategory governance denotes the overall system of responsibilities, decision rules, policies and control mechanisms with which companies steer their procurement
- Category IntelligenceCategory Intelligence Procurement · Category Intelligence · Category InsightsCategory Intelligence refers to the systematic preparation of market, supplier and cost knowledge relating to a specific category or procurement category. The a
- Category ManagementCategory Management · Category Management · Commodity ManagementCategory management refers to the structured organisation, analysis and steering of procurement volumes by logically grouped goods and service categories. The a
- Category PlaybookCategory manual · Category Book · Category Play BookA Category Playbook is a structured playbook that documents, for a specific procurement category – such as steel, electronic components or services – the strate
- Category StrategyCategory Strategy · Commodity Strategy · Material Group StrategyA category strategy is a clearly delineated procurement strategy for a specific commodity group or material family. It defines how a company steers procurement
- Category Value Driver AnalysisValue Driver Analysis · Cost Driver Analysis Category · Cost Driver AnalysisCategory value driver analysis is a structured procedure in strategic procurement used to determine which factors decisively determine the value and cost of a c
- Category VisionCategory Vision Statement · Procurement Category Vision · Commodity VisionThe category vision describes the long-term target picture of a procurement category and answers the question of what procurement for a commodity group should l
- Commodity group boardCategory Board · Commodity Group Portfolio · Category DashboardThe commodity group board is a clear, usually visual management tool with which procurement organisations classify their commodity groups by importance, market
- Commodity Group RoadmapCategory Roadmap · Category Plan · Commodity RoadmapThe commodity group roadmap is a strategic planning instrument of procurement that defines which commodity groups are to be addressed in which period and with w
- Commodity group structureWarengruppensystematik · Warengruppenhierarchie · Commodity StructureThe commodity group structure is the systematic organisation of all goods and services procured by a company into homogeneous groups with similar characteristic
- Commodity IndexCommodity Price Index · Goods Price Index · Raw Material Price IndexA commodity index is a statistically determined price index that maps the price development of raw materials, standard components or traded goods over time. In
- Commodity StrategyCommodity Group Strategy · Category Strategy · Commodity Group StrategyThe commodity strategy is the long-term procurement strategy for a commodity group or material category, frequently referred to in procurement as a commodity or
- Complexity ReductionComplexity Reduction · Part Standardisation · Item Master CleansingComplexity reduction refers to the systematic reduction of the variety of parts, materials, suppliers, processes and variants in procurement and manufacturing.
- Contingency planContingency Plan · Emergency Management · Business Continuity PlanA contingency plan is a pre-documented course of action with which companies get disruptions in procurement, production and the supply chain under control befor
- Cost Driver AnalysisCost Driver Analysis · Kostentreiberanalyse · Cost Driver IdentificationCost driver analysis is a systematic method for identifying and evaluating the factors that cause costs in procurement, production and logistics. For buyers and
- Country Risk in ProcurementCountry Risk · Sourcing Country Risk · Country Risk ManagementCountry risk in procurement refers to the danger that political, economic, legal or social developments in the sourcing country impair the availability, costs o
- Crisis Management TeamCrisis Management Team · Notfallorganisation · KrisenteamA crisis management team is a fixed or ad hoc convened organisational unit that coordinates decisions and steers measures during supply failures, production sto
- Critical materialscritical materials · critical raw materials · strategic materialsCritical materials are input products and raw materials whose failure or scarcity can significantly jeopardise a company's production, ability to deliver or com
- Cross-Functional SourcingCross Functional Sourcing · Cross-Functional Sourcing Team · interdisciplinary procurementCross-functional sourcing refers to cross-departmental collaboration between procurement, engineering, quality, logistics and other departments in the procureme
D
- Degree of standardisationDegree of Standardization · Degree of Standardisation · Standardisation ratioThe degree of standardisation describes how strongly products, processes, interfaces or supplier relationships are standardised within a company. For technical
- Delegation of AuthorityDoA · Delegation of Authority Matrix · authorisation matrixDelegation of Authority (DoA) refers to the formally regulated transfer of decision-making powers within an organisation, in particular for contractual and fina
- Demand AggregationDemand pooling · Demand Consolidation · Collective SourcingDemand aggregation refers to the deliberate pooling of identical or compatible requirements from multiple BUs, plants or companies in order to market them to th
- Demand bundlingBedarfskonsolidierung · Demand Aggregation · Demand PoolingDemand bundling refers to the consolidated combination of similar or related demands into joint procurement processes. The aim is to achieve better prices and t
- Design SprintDesign Sprint Workshop · Google Design Sprint · SprintThe Design Sprint is a structured, time-boxed format for, as a rule, working through a concrete problem within five days, developing solution ideas, building a
- Design-to-CostDesign to Cost · DTC · Target CostingDesign-to-Cost is an approach in which target costs are anchored early in product development and design decisions are consistently aligned with these targets.
- Design-to-ValueDtV · Design to Value · Design-to-CostDesign-to-Value (DtV) is a structured approach to systematically optimising the costs, functionality and competitiveness of products already during the developm
- Dual sourcingSecond-source strategy · Second Sourcing · Two-Source StrategyDual sourcing refers to the procurement strategy of deliberately sourcing a good, a component or a service from two suppliers rather than relying on a single pr
- Dual-Source ManagementDual Sourcing · Doppelbelieferung · ZweiquellenstrategieDual-source management refers to the strategic and operational control of procurement positions with at least two qualified suppliers per item or product group.
- Dual-Sourcing RatioDual Sourcing · Second-Sourcing Ratio · Second-Source RatioThe dual-sourcing ratio indicates what proportion of procured items or material groups is covered by at least two qualified suppliers. It is a key metric in sup
E
- Economies of scaleeconomies of scale · volume advantages · size degressionEconomies of scale describe the savings per unit when a larger quantity is procured, manufactured or processed. For technical buyers, they are a central lever f
- Emergency Procurement TeamKrisenstab Einkauf · Emergency Purchasing Team · Crisis Response Team ProcurementAn emergency procurement team is a firmly defined group of procurement, logistics and specialist department representatives that at short notice secures the com
- Evaluation CriteriaBewertungsmatrix · Kriterienkatalog · Evaluation CriteriaEvaluation criteria are defined benchmarks against which buyers systematically compare and assess offers, suppliers or procurement processes. They translate cor
F
- Framework AgreementFramework Agreement · Call-off Contract · Volume Framework AgreementA framework agreement is a long-term arrangement between buyer and supplier that sets out terms, prices and delivery conditions for future call-off deliveries w
- Framework agreementsRahmenvertrag · Framework Agreement · RahmenvereinbarungA framework agreement is a foundational contract between buyer and supplier that sets terms and conditions, volume frameworks and durations for future business
- Framework Agreements in ProcurementRahmenvertrag · Abrufvertrag · Framework AgreementFramework agreements in procurement are long-term contracts that bindingly fix terms, prices and delivery conditions for a defined period without already guaran
- Framework Supply AgreementFramework Agreement · Framework Contract · ContractThe framework supply agreement is a long-term supply arrangement that fixes quantities, prices and delivery conditions for a defined period without bindingly sc
G
- Geopolitical riskgeopolitical risk · Geo-Risiko · politisches BeschaffungsrisikoGeopolitical risk refers to the danger that political events such as conflicts, sanctions, trade disputes or regime changes impair a company's supply chains and
- Global Sourcingglobal procurement management · worldwide procurement · international procurementGlobal Sourcing refers to the strategic procurement of materials, components and services across national borders in order to make optimal use of costs, quality
- Governance in Category ManagementCategory Governance · Procurement Governance · Category Management GovernanceGovernance in category management refers to the overall system of rules, responsibilities, processes and control mechanisms with which companies steer their pro
I
- Idea EvaluationIdeenmanagement · Ideenbewertungsverfahren · idea evaluationIdea evaluation refers to the structured process by which companies review, compare and prioritise proposals for process, cost or supplier optimisation against
- In-house production depthFertigungstiefe · Wertschöpfungstiefe · EigenfertigungsquoteIn-house production depth describes the share of value added that a company performs itself rather than passing it to suppliers. It is a central strategic lever
- Indirect ProcurementIndirect Procurement · Indirect Purchasing · Overhead ProcurementIndirect procurement covers all purchases of a company that do not flow directly into the manufactured product. This includes consumables, services, IT, MRO mat
- Innovation FunnelInnovation funnel · Idea funnel · Innovation PipelineThe innovation funnel describes the multi-stage filtering process by which companies select a manageable number of marketable innovations from a large volume of
- Innovation management in procurementSupplier Innovation Management · Early Supplier Involvement · ESIInnovation management in procurement refers to the systematic identification, evaluation and use of innovations from the supply base, as well as developing the
- InsourcingBacksourcing · In-Housing · Internal SourcingInsourcing refers to the deliberate re-transfer of services, manufacturing processes or functions that were previously outsourced to external providers back int
- IP Co-CreationIntellectual Property Co-Creation · Co-Development · Joint IP DevelopmentIP co-creation refers to the joint development of protectable results – such as patents, know-how, software or designs – between a company and external partners
J
K
L
- Lean ProcurementLean Procurement · Lean Purchasing · Low-Waste ProcurementLean Procurement means the consistent application of lean principles across the entire procurement process – from requirement identification through tendering t
- Lessons LearnedLessons Learned Analysis · Lessons Learned Documentation · RetrospectiveLessons Learned refers to the systematic evaluation of experience gained from completed or ongoing projects, processes and negotiations in procurement. The aim
- LocalisationLocal for Local · Regionalisation · NearshoringLocalisation refers to the relocation and anchoring of procurement, production and value creation in the region where the sales markets are located. For industr
- Low-Cost Country SourcingLCCS · Low-Cost-Country-Sourcing · Global SourcingLow-Cost Country Sourcing (LCCS) refers to the strategic procurement of goods and services in countries with lower wage and production costs, typically in Asia,
M
- Make-or-BuyMake or Buy · in-house manufacturing or external procurement · Make-or-Buy analysisMake-or-Buy refers to the strategic decision of whether a company manufactures a service, a component or an entire production stage itself (Make) or procures it
- Mandatory and Desirable CriteriaMuss-Kriterium · Kann-Kriterium · AusschlusskriterienMandatory and desirable criteria are an organising principle for evaluating bids and suppliers in the procurement process. Mandatory criteria describe non-negot
- Market AnalysisBeschaffungsmarktanalyse · Einkaufsmarktanalyse · Market AnalysisThe market analysis is the systematic examination of a supply market in terms of suppliers, prices, capacities, technologies and market dynamics. It forms the b
- Market ModelProcurement market model · Market structure model · Market ModelA market model is a structured representation of a procurement market, including suppliers, buyers, market forces, price drivers and barriers to entry. For buye
- Market MonitoringSupply Market Intelligence · Market Monitoring in Procurement · Procurement Market MonitoringMarket monitoring refers to the systematic and continuous collection, evaluation and interpretation of information on procurement markets, suppliers, technologi
- Market segmentation in procurementProcurement segmentation · Spend segmentation · Commodity group portfolioMarket segmentation in procurement refers to the systematic division of the supply market according to objective criteria such as product groups, regions, suppl
- Material classesMaterial groups · Procurement categories · Material classificationMaterial classes are a systematic grouping of materials, goods and services according to shared technical or commercial characteristics. They form the backbone
- Material classificationCommodity classification · Material grouping · Commodity ClassificationMaterial classification refers to the systematic assignment of all procured materials, goods and services to a uniform classification system. It creates a commo
- Material group hierarchycommodity group hierarchy · material hierarchy · commodity hierarchyThe material group hierarchy is the structured framework with which companies classify their procured materials, parts and services into higher-level and lower-
- Material groupsCommodity group · Commodity Group · Material classMaterial groups are a systematic structuring of all of a company's procurement objects according to technical, commercial or logistical commonalities. They form
- Measures pipelineSavings Pipeline · Measures Portfolio · Savings PipelineThe measures pipeline is a structured, portfolio-style system in which all procurement and cost reduction projects are managed from idea through to implementati
- Modular SourcingSystem Sourcing · Module Purchasing · Parts BundlingModular sourcing is a procurement strategy in which a company purchases not individual components but fully pre-assembled modules or assemblies from suppliers.
- Monopoly positionSole Source · Single Source · Sole supplierA monopoly position describes a market situation in which only a single supplier provides a particular product or service, making economic switching impossible.
- MRO vs. Capex Procurement PolicyInvestment procurement · MRO Procurement Policy · Capex ProcurementThe MRO vs. Capex procurement policy defines how companies distinguish between the procurement of consumables and repair materials (MRO) and capital goods (Cape
N
- NearshoringNearshore sourcing · Nearshoring strategy · regional procurementNearshoring refers to the strategic relocation of procurement, manufacturing or services to countries with a smaller geographical, cultural or regulatory distan
- Negotiation Proceduresupplier negotiation · negotiation process · procurement negotiationThe negotiation procedure is a structured process by which procurement organisations negotiate terms, prices and contract conditions with suppliers. It sits bet
- Negotiation RoundPrice Negotiation Round · Terms Round · Negotiation RoundA negotiation round refers to a time-limited, structured pass of price and terms negotiations between buyer and supplier. It is a central instrument for systema
- Negotiation TechniquesNegotiation Techniques · Negotiation Skills · Procurement NegotiationNegotiation techniques are structured methods and behaviours with which buyers achieve better terms, greater supply security and more stable partnerships in dis
- Network AnalysisSupply Network Analysis · Supplier Network Analysis · Supply Chain Network AnalysisNetwork analysis is a systematic method for mapping and evaluating a company's entire supplier and upstream network and for making weak points visible. It goes
- Non-open procedurenon-open procedure · selective procedure · restricted procedureThe non-open procedure is a type of award in which the contracting authority selectively asks chosen companies to submit a bid without the invitation to tender
O
- OEM/ODM ModelOriginal Equipment Manufacturer · Original Design Manufacturer · Contract ManufacturingThe OEM/ODM model describes two fundamental forms of value-creation partnership between brand companies and manufacturing partners: under OEM (Original Equipmen
- OffshoringOffshore relocation · Offshore outsourcing · Global sourcingOffshoring refers to the relocation of value creation stages such as manufacturing, development or services abroad, frequently with the aim of lower costs. For
- OnshoringBackshoring · Reshoring · InsourcingOnshoring refers to the deliberate relocation of production, procurement or services back to the domestic market, often from abroad. For purchasers and supply c
- Open InnovationOpen Innovation · OI · Outside-In InnovationOpen Innovation refers to the deliberate opening of innovation processes across company boundaries by systematically incorporating external knowledge. In an ind
- Open procedureopen tendering · offene Ausschreibung · Open ProcedureThe open procedure is a procurement procedure in which any interested company may submit a bid without prior selection or qualification screening. It is regarde
- Open-Book CostingOpen Book Costing · Open-book costing · open price quotationOpen-book costing refers to a procurement method in which suppliers disclose their cost structure – material, labour, machine hours, overheads and profit margin
- OutsourcingOffshoring of tasks · Business Process Outsourcing · manufacturing outsourcingOutsourcing refers to the transfer of company functions, processes or manufacturing services to external service providers. In industry, it frequently concerns
- Outsourcing analysisOutsourcing analysis · Award analysis · Outsourcing Decision AnalysisThe outsourcing analysis is a systematic examination of which services and components a company should award externally and under which conditions this is most
- Outsourcing potential analysisMake-or-Buy potential analysis · Outsourcing assessment · Sourcing potential analysisThe outsourcing potential analysis is a structured approach for determining which services, assemblies or processes a company can sensibly transfer to external
- Outsourcing transitionTransition Management · Outsourcing Transition Phase · Transfer of WorkThe outsourcing transition is the structured transfer of processes, manufacturing services or entire functional units from a company to an external service prov
P
- PoolingDemand pooling · Volume pooling · Volume bundlingIn industrial procurement, pooling refers to the systematic bundling of requirements, volumes or resources across departments, sites or companies in order to ac
- Portfolio analysis in procurementKraljic portfolio · supplier portfolio · procurement portfolioPortfolio analysis in procurement is a strategic method for systematically evaluating purchased items and suppliers by their impact on business success and by p
- Price band/price corridorPrice corridor · Price band · Price band agreementA price band or price corridor defines a contractually or internally agreed range within which purchase prices may move without requiring renewed approval. For
- Price Breakdown SheetCalculation Sheet · Price Schedule · Price Structure SheetThe price breakdown sheet is a standardised document with which buyers request comparable, fully itemised price information from suppliers for a product or serv
- Price FormulaPreisanpassungsformel · Indexklausel · PreisanpassungsklauselThe price formula is a contractually agreed calculation rule by which the price of a service or component automatically changes during the term of a supply cont
- Price negotiation in the tendering processNegotiation in the procurement process · Terms negotiation · NegotiationPrice negotiation in the tendering process is the central step between bid submission and contract award, in which buyers negotiate terms, prices and contract d
- Price Negotiation TechniquesNegotiation technique in procurement · Negotiation Techniques · Price negotiationPrice negotiation techniques are structured procedures and argumentation strategies with which industrial buyers obtain better terms from suppliers. They range
- Procurement Business PlanEinkaufs-Businessplan · Purchasing Business Plan · Procurement PlanningThe procurement business plan is the structured written planning of all key objectives, measures and resources of a company's procurement function. It translate
- Procurement CharterBeschaffungsleitbild · Procurement Charter · EinkaufsgrundsätzeA procurement charter is a written policy document that defines the mission, values, objectives and standards of conduct of a company's procurement function. It
- Procurement Competency MatrixSkillmatrix Einkauf · Kompetenzraster · Skill Gap MatrixThe procurement competency matrix is a structured tool for systematically recording and assessing the skills, knowledge and experience of all members of the pro
- Procurement GuideSourcing guide · Procurement handbook · Procurement GuidelineA procurement guide is an internal company reference work that defines rules, processes and responsibilities for procurement in a binding manner. It consolidate
- Procurement leverProcurement Lever · Buying Lever · Cost Lever ProcurementThe procurement lever describes the effect by which savings in the cost of materials increase company profit disproportionately strongly. Since material costs i
- Procurement ManualBeschaffungshandbuch · Purchasing Manual · EinkaufsleitfadenThe procurement manual is an internal set of rules that bindingly documents the processes, competences and standards of procurement. It creates a uniform founda
- Procurement Market Competitive AnalysisProcurement Market Analysis · Procurement Market Research · Supplier Market AnalysisThe procurement market competitive analysis is the systematic examination of the supplier landscape, market prices, capacities and power relationships in the ma
- Procurement objectivesEinkaufsziele · Procurement Objectives · Sourcing objectivesProcurement objectives are the overarching and operational targets that guide a company's procurement organisation. They translate the corporate strategy into m
- Procurement optimisationProcurement Optimization · Einkaufsoptimierung · Purchasing OptimizationProcurement optimisation refers to the systematic analysis and improvement of all procurement processes within a company – from requirements identification thro
- Procurement organisationBeschaffungsorganisation · Purchasing Organization · Procurement OrganizationThe procurement organisation denotes the structural and process-oriented design of the procurement function within a company, including roles, responsibilities,
- Procurement PolicyPurchasing Policy · Procurement Policy · Procurement PrinciplesThe procurement policy is the set of rules established by company management that defines the framework and guidelines for all purchasing activities of a compan
- Procurement PolicyBeschaffungsrichtlinie · Procurement Policy · Purchasing PolicyThe procurement policy is an internal company document that establishes binding rules, responsibilities and procedures for all procurement processes. It creates
- Procurement Readiness Levelprocurement readiness · procurement readiness level · request readinessThe procurement readiness level describes how far a procurement requirement has already been prepared so that it can be awarded to suppliers. It summarises whet
- Procurement StrategySourcing Strategy · Purchasing Strategy · Procurement StrategyThe procurement strategy is the long-term action concept with which a company defines which goods and services it procures, how, from whom and on what terms. It
- Procurement StrategyBeschaffungsstrategie · Purchasing Strategy · Procurement StrategyThe procurement strategy is the long-term roadmap by which a company procures: which goods and services from which suppliers, on which terms and through which p
- Product lifecycle managementPLM · Product Lifecycle Management · product life cycle steeringProduct lifecycle management (PLM) refers to the structured planning, steering and control of a product across all phases, from the initial idea through develop
- Project ProcurementProjektbeschaffung · Project Procurement · CAPEX ProcurementProject procurement refers to the sourcing of materials, plant and services for time-limited, one-off undertakings such as plant engineering, capacity expansion
- Project ProcurementProject purchasing · Capital Goods Procurement · Capital equipment procurementProject procurement refers to the purchasing of goods and services allocated to a defined project – such as plant and equipment, special-purpose machinery, cons
- Proof of Concept ProcurementPoC procurement · sample procurement · Proof of Concept ProcurementProof of Concept procurement is a purchasing approach in which new suppliers or technologies are first trialled in a limited, controlled practical test before r
- Purchasing cooperationCollaborative purchasing · Purchasing cooperative · Buying GroupA purchasing cooperation is the contractually or organisationally regulated alliance of several companies to pool procurement volumes and jointly achieve more f
R
- Request for Proposal (RFP)Request for Proposal · RFP · TenderThe Request for Proposal (RFP) is a formal tender document with which a company requests offers for complex products, services or system solutions. Unlike a pur
- Requirements Specificationrequirements specification · specification document · requirements specification/functional specificationThe requirements specification (Lastenheft) is a structured requirements document with which the customer or buyer bindingly describes their requirements for a
- ReshoringBackshoring · Onshoring · InsourcingReshoring refers to the relocation of production capacity or procurement processes from abroad back to the company's own site or to nearby countries. For techni
- Reverse AuctionReverse auction · Inverse auction · E-auctionThe reverse auction is an e-auction procedure in which suppliers bid downwards on the price for a defined scope of services in a competitive online process. For
- RFX in ProcurementRequest for Quotation · Request for Proposal · Request for InformationRFX is an umbrella term for structured request processes within the procurement process, such as Request for Information (RFI), Request for Quotation (RFQ) and
- Risk Analysis in ProcurementRisk Assessment · Beschaffungsrisikoanalyse · Supplier Risk AnalysisThe risk analysis is a systematic process for identifying, assessing and prioritising risks in the procurement environment. For buyers and supply chain managers
- Risk classesRisk classification · Supplier Risk Classes · Criticality ClassesRisk classes are a systematic classification of suppliers, materials or procurement objects according to their potential damage impact on the company. They form
- Risk diversificationDiversification in procurement · Supplier Diversification · Multi SourcingRisk diversification refers to the deliberate distribution of purchasing volumes, suppliers and supply routes across multiple sources in order to reduce depende
- Risk HeatmapRisiko-Heatmap · Risk Map · Risk MatrixThe risk heatmap is a visual matrix that procurement organisations use to assess and prioritise risks by probability of occurrence and potential damage. It tran
- Risk Management in ProcurementSupply Chain Risk Management · Procurement Risk Management · Supply Chain Risk MitigationIn the procurement context, risk management refers to the systematic identification, assessment and control of risks that can arise from the supply of materials
- Risk MatrixRisk Matrix · Risiko_matrix · RisikobewertungsmatrixThe risk matrix is a risk management tool used to assess and visualise procurement risks by likelihood of occurrence and potential impact. In procurement, it se
- Risk Mitigation PlanMitigation Plan · Risk Reduction Plan · Risk Minimisation PlanA Risk Mitigation Plan is a structured document that identifies and assesses supply, cost and quality risks in procurement and defines countermeasures. In procu
- Risk PolicyRisk Policy · Procurement Risk Policy · Procurement Risk ManagementThe risk policy comprises the company-wide binding principles according to which an industrial company identifies, assesses, limits and monitors procurement and
- Risk RegisterRisk Register · Risikokataster · Risiko-LogA risk register is a structured directory of all identified risks of a company, in which causes, impacts, probabilities and countermeasures are documented. In p
- Roles in Procurement (RACI)RACI matrix · RACI chart · RASCIRACI is a responsibility model used in procurement to define who is Responsible, Accountable, Consulted or Informed for a task. It creates clarity at the interf
- Rollout ManagementRollout · System rollout · Global rolloutRollout Management refers to the structured planning, control and execution of the organisation-wide introduction of systems, processes, products or supply conc
S
- S&OP CycleSales and Operations Planning · S&OP · S&OP processThe S&OP cycle (Sales and Operations Planning cycle) is the recurring, usually monthly, planning cycle in which companies align demand, capacities, procurement
- Scenario Planning RiskScenario Planning · What-if Analysis · Risk ScenarioScenario planning risk refers to the systematic development and assessment of alternative future scenarios in order to detect potential supply chain disruptions
- Second Source ThresholdSecond Source threshold · second-source threshold · Dual Sourcing ThresholdThe Second Source Threshold denotes the defined threshold at which a second supplier is approved for an item or component – for example a minimum share of the c
- Should-Cost LibraryShould-Cost Analysis · Target Cost Analysis · Target Cost ReferenceA Should-Cost Library is a structured collection of should-cost analyses, i.e. calculated target costs for purchased parts, assemblies and services. It forms th
- Should-costingShould Cost Analysis · Should-Cost Analysis · Target Cost CalculationShould-costing refers to the systematic determination of the justified manufacturing costs of a product or service from the buyer's perspective. The aim is to d
- Single sourcingSingle-source strategy · Single-source procurement · One-supplier strategySingle sourcing refers to the procurement strategy in which a company deliberately uses only one supplier for a product or service – even though several would b
- Source-to-Contract (S2C)S2C · Source to Contract · Strategic SourcingSource-to-Contract (S2C) denotes the entire process from requirement identification through award to the binding conclusion of a contract with a supplier. The t
- Sourcing leversSourcing levers · Procurement levers · Procurement leversSourcing levers are the systematically deployable levers with which procurement organisations measurably improve the cost, quality, supply capability and risks
- Sourcing PipelineSourcing-Funnel · Procurement Pipeline · EinkaufspipelineThe sourcing pipeline is the structured stage model with which procurement organisations systematically take a procurement requirement from the initial demand t
- Sourcing processProcurement Process · Sourcing process · Strategic SourcingThe sourcing process describes the structured path by which companies identify requirements, identify, evaluate and contractually bind suppliers. It comprises s
- Sourcing StrategyProcurement strategy · Purchasing strategy · Category strategyThe sourcing strategy is the medium- to long-term plan with which a company defines which goods and services it procures from which suppliers, from which region
- Sourcing wave planSourcing Wave Plan · Sourcing Roadmap · Procurement Wave PlanningThe sourcing wave plan is a time-phased planning method with which companies bundle several procurement initiatives into successive waves and implement them seq
- Sourcing Wave PlanSourcing Wave Plan · Sourcing Roadmap · Sourcing WaveA sourcing wave plan is a time-phased action plan that determines which purchased material groups, components or services are bundled, tendered and awarded in w
- Specification of worksLV · Positionsverzeichnis · specification of worksThe specification of works (Leistungsverzeichnis, LV) is a structured, complete description of all services that a supplier or service provider is to render. It
- Spend TaxonomySpend Classification · Spend Categories · Procurement Category HierarchyThe spend taxonomy is a uniform, hierarchical structure of all procurement volumes by commodity group, category and, where applicable, supplier or site. It crea
- Spend under ManagementSuM · Spend Management · Spend Under-CoverageSpend under Management (SuM) refers to the proportion of a company's total procurement volume that is systematically controlled by the procurement organisation.
- Spot Purchase vs. Framework AgreementSpot Procurement · Framework Agreement · Blanket OrderSpot purchases and framework agreements are two fundamental forms of demand coverage in industrial procurement. With a spot purchase, demand is procured case by
- Stakeholder managementStakeholder Management · Stakeholder Group Management · Interest Group ManagementStakeholder management refers to the systematic identification, analysis and involvement of all individuals and groups affected by procurement decisions or infl
- StandardisationStandardization · Component standardisation · Item standardisationStandardisation refers to the systematic unification of components, materials, specifications and procurement processes across products, sites and suppliers. Fo
- Strategic AllianceStrategic Partnership · Supply Alliance · Strategic Sourcing PartnershipA strategic alliance is a long-term, contract-based or conceptually cooperative collaboration between companies that pursue shared goals without full merger. In
- Supplier consolidationSupplier Consolidation · Supplier Base Reduction · Supplier Portfolio RationalisationSupplier consolidation refers to the strategic reduction in the number of active suppliers in favour of a small number of more capable partners. The aim is to u
- Supplier InnovationSupplier Innovation Management · Early Supplier Involvement · ESISupplier Innovation refers to the systematic involvement of suppliers in the development and improvement processes of the purchasing company. Suppliers often kn
- Supplier Innovation ChallengeInnovation Challenge · Supplier Innovation Day · Innovation SourcingA Supplier Innovation Challenge is a structured, often competition-style process through which companies deliberately call on external suppliers and development
- Supplier StrategySupplier Strategy · Supplier Portfolio Strategy · Sourcing StrategyThe supplier strategy describes the long-term alignment of a company's entire supplier portfolio with its procurement and corporate objectives. It answers which
- Supply Chain MappingSupply chain mapping · Supply network mapping · Supplier mappingSupply chain mapping refers to the systematic capture and visualisation of all stages, actors, sites and material flows along a supply chain – from raw material
- Supply Chain ResilienceSupply Chain Resilience · Security of Supply · Supply Chain SecuritySupply chain resilience describes the ability of a supply chain to absorb disruptions such as failures of upstream suppliers, transport problems or raw material
- Supply Chain Resilience ManagementSupply chain resilience · Supply Chain Risk Management · SCRMSupply Chain Resilience Management refers to the systematic planning, control and monitoring of procurement and supply chains with the aim of anticipating disru
- Supply Market IntelligenceSMI · Supply Market Research · procurement market analysisSupply Market Intelligence refers to the systematic collection, processing and usable preparation of information on procurement markets, suppliers and price for
- Supply Risk ManagementSRM · Supply Chain Risk Management · SCRMSupply Risk Management encompasses the systematic identification, assessment and control of risks along the entire procurement and supply chain. For industrial
- Supply securitySupply Security · Supply Availability · LieferfähigkeitSupply security refers to a company's ability to meet its production and delivery demand for materials, components and services at all times, in a plannable man
- Synergy effectsSynergies · Synergy potential · Synergy EffectsSynergy effects describe positive interactions that arise when functions, departments or resources are merged and thereby create more value than the sum of the
T
- Technology Assessment in ProcurementTechnology Assessment · Technology Assessment in Procurement · Technology ScoutingTechnology assessment in procurement refers to the systematic examination of technical solutions, processes and supplier capabilities with regard to their suita
- Technology radarsTechnology Radar · Technology Early Detection · Technology MonitoringTechnology radars are structured visualisation instruments with which companies make relevant technologies visible along defined maturity levels and strategic r
- Tender ManagementAward management · RFQ management · Sourcing Event ManagementTender management refers to the structured process for preparing, conducting and evaluating tenders for materials, services and contract manufacturing in indust
- Tendering processAward procedure · Tender · TenderingThe tendering process is a structured procedure for the systematic solicitation and evaluation of supplier quotations for goods, services or framework agreement
- Tendering strategyAward strategy · Sourcing Strategy · Tender StrategyThe tendering strategy is the plan defined in advance with which a company structures, conducts and evaluates purchasing competitions. It determines which items
- Terms ManagementKonditionspflege · Terms Management · Conditions ManagementTerms management refers to the systematic planning, negotiation, agreement and ongoing monitoring of all pricing and contractual terms between procurement and s
- Total Cost AccountingTotal Cost of Ownership · TCO · life cycle costingTotal cost accounting, also known as total cost of ownership (TCO), captures all costs incurred by a procured item over its entire life cycle. It therefore goes
- Total Cost of Ownership (TCO)TCO · total cost consideration · total operating costsTotal Cost of Ownership (TCO) denotes the sum of all costs incurred by the procurement and use of a product or service over the entire life cycle. The approach
- Total Cost TreeTCO Tree · Total Cost of Ownership Tree · Cost TreeThe Total Cost Tree is a structured method for mapping all costs of a purchased item or service in a structured cost capture – comparable to a cost framework. I
- Transfer of WorkTransition of Work · Work Transfer · ArbeitsverlagerungTransfer of Work refers to the systematic transfer of manufacturing, assembly or service processes from one company to an external supplier or between two suppl
- Two-Envelope BidZweihüllenverfahren (two-envelope procedure) · Two-Envelope System · Two-Envelope TenderThe Two-Envelope Bid is a tendering procedure in which technical and commercial bids are submitted in separate, sealed envelopes or separate files. Only after t
V
- Value AnalysisValue Analysis · Value Engineering · VA/VEValue analysis is a systematic method for fulfilling the functions of a product or component at the lowest total cost level. In strategic procurement, it is use
- Variant managementVariantensteuerung · Variant diversity management · KomplexitätsmanagementVariant management refers to the systematic planning, control and reduction of product and part diversity along the entire value chain. In industrial procuremen
- Vertical IntegrationVertikalintegration · Wertschöpfungstiefe · Vertical IntegrationVertical integration refers to the expansion of a company's level of vertical integration along the value chain, for example through the takeover of upstream or
- Vertical IntegrationFertigungstiefe · Vertical Integration · FertigungsgradVertical integration describes the proportion of a company's value creation that is delivered under its own responsibility within its own operations and the por
- Volume CommitmentVolume Commitment · Minimum Purchase · Take-or-PayA volume commitment is a buyer's contractual obligation to call off a specific quantity or minimum spend from a supplier within a defined period. In industrial
- Volume discounts in procurementtiered discount · quantity scale · volume rebateA volume discount is a price reduction granted by suppliers for larger purchase quantities or higher annual order volumes. For buyers, it is a key lever for cos