Procurement glossary
Procurement glossary: purchasing and sourcing terms from A to Z
More than 1,000 terms from strategic and operational procurement, supply chain, quality and logistics – clearly explained with KPIs, practical examples and FAQ.
1000 of 1007 terms explained – more added continuously.
Key terms
- CBAMCBAM (Carbon Border Adjustment Mechanism) is the European Union's carbon border adjustment system, under which imported, emissions-intensive goods have been sub
- Customs tariff numberThe customs tariff number is the codified classification of a good within the international customs tariff system and determines the duty rate, goods statistics
- DDP (Delivered Duty Paid)DDP (Delivered Duty Paid) is a delivery term from the Incoterms rules under which the seller delivers the goods to the named destination, handles import customs
- DUNS numberThe DUNS number is a globally unique nine-digit identification number for companies, issued and managed by Dun & Bradstreet. In technical procurement, it serves
- Early payment discount (Skonto)An early payment discount (Skonto) is a price reduction granted by a supplier if the invoice amount is settled within a short period, typically 8 to 14 days. Fo
- FactoringFactoring is the ongoing sale of outstanding customer receivables to a factoring company, which in return pays out the receivables value immediately, less fees.
- FMEAFMEA (Failure Mode and Effects Analysis) is a systematic method for identifying potential failures in products and processes before they occur. It originated in
- Ishikawa DiagramThe Ishikawa diagram, also known as the fishbone diagram or cause-and-effect diagram, is a visual method for the structured root cause analysis of problems. In
- KanbanKanban is a demand-driven control principle in which material replenishment is only triggered once actual consumption has taken place. In industrial procurement
- Purchase OrderThe purchase order is a company's binding, written offer to a supplier to take delivery of goods or services on defined terms. It forms the legal and organisati
- Request for Information (RFI)The Request for Information (RFI) is a non-binding information-gathering enquiry with which buyers first explore the market and potential suppliers. It typicall
- Supply Chain Due Diligence ActThe Supply Chain Due Diligence Act (officially Lieferkettensorgfaltspflichtengesetz, LkSG) obliges companies in Germany to exercise due diligence in their globa
A
- A-SupplierA-supplier · key supplier · strategic supplierA-suppliers are a company's most important suppliers – the sources of supply whose failure or performance decline would immediately jeopardise the company's own
- 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 AnalysisABC/XYZ analysis · ABC-XYZ matrix · ABC-XYZ classificationThe ABC-XYZ analysis is a two-dimensional procurement controlling method that classifies items and product groups by their value share (ABC) and the regularity
- 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'
- Acceptance criteriaacceptance conditions · acceptance test criteria · acceptance specificationAcceptance criteria are the contractually or formally defined requirements that a supplied item must fulfil in order for the customer to accept the delivery. Th
- Account assignmentKontierungsfelder · account assignment · cost assignmentAccount assignment refers to the allocation of a business transaction – such as a purchase order, goods receipt or incoming invoice – to the correct G/L account
- ADRAccord relatif au transport international des marchandises d · ADR Agreement · Dangerous Goods Road AgreementADR stands for the “Accord relatif au transport international des marchandises dangereuses par route”, the European Agreement concerning the International Carri
- Advance Shipping Notice (ASN)ASN · Advance shipping notification · Despatch messageAdvance Shipping Notice (ASN) refers to the electronic advance notification of a shipment that a supplier transmits before or with the despatch to the customer.
- AEOAuthorised Economic Operator · Certified Economic Operator · AEOCAEO stands for Authorised Economic Operator – a status under EU customs law granted to companies with reliable and secure processes throughout the entire supply
- AEO StatusAEO · Authorised Economic Operator · zugelassener WirtschaftsbeteiligterAEO status (Authorised Economic Operator) is a customs certification that identifies companies as reliable and trustworthy economic operators in the internation
- 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
- AI in ProcurementAI Procurement · Artificial Intelligence in Procurement · Machine Learning in ProcurementAI in procurement refers to the use of artificial intelligence and machine learning to support and automate procurement processes. In practice, this covers area
- Air freight cost componentsAir Freight Cost Components · Luftfrachtkosten · Fuel SurchargeAir freight cost components are the individual cost elements that make up the final price of an air freight shipment. Besides the freight rate, they include in
- Air Waybill (AWB)AWB · air waybill · e-AWBThe Air Waybill (AWB) is the accompanying transport document for air freight shipments and simultaneously serves as the consignment note, receipt confirmation a
- Alloy Surchargealloy surcharge · ALZ · material surchargeThe Alloy Surcharge is a variable price component that passes fluctuations in alloying metal costs – such as nickel, chromium, molybdenum or cobalt – between th
- 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
- AmendmentContract Amendment · contract change · contract supplementAn amendment is a formal contract change used to subsequently adjust individual clauses of an existing supply or framework agreement. In procurement, this frequ
- Andler lot sizeAndler formula · EOQ · Economic Order QuantityThe Andler lot size is a classic method for determining the economic order quantity for stock items with constant demand. It balances procurement costs and inve
- Annual call-offLieferabruf · Call-off · Annual call-offThe annual call-off is a binding or informative demand notification by which a buyer communicates to its supplier the expected requirement for a year, distribut
- Annual review meetingLieferantenjahresgespräch · Annual Supplier Review · Supplier Annual MeetingThe annual review meeting is a formalised, yearly review meeting between the purchasing organisation and the supplier in which performance, quality, development
- Approval limits in procurementFreigabelimit Einkauf · Zeichnungsgrenze · Bestellfreigabe-LimitApproval limits in procurement define the order value or commitment volume up to which individual buyers, team leaders or executives may independently place ord
- Approval WorkflowFreigabeprozess · Genehmigungsworkflow · Approval WorkflowThe approval workflow is a defined process in which purchase orders, contracts or technical documents are reviewed and approved in sequence by the responsible p
- Approved Vendor List (AVL)Approved Vendors List · Qualified Supplier ListThe Approved Vendor List (AVL) is the central register of all suppliers approved for procurement within a company. It documents which providers are qualified fo
- APQPAdvanced Product Quality Planning · APQP process · Advanced product quality planningAPQP (Advanced Product Quality Planning) is a structured, phase-based process for quality assurance in the development and industrialisation of new products. It
- ASN Processing (Advanced Shipping Notice)ASN · Advanced Shipping Notice · Advanced Shipment NotificationASN processing (Advanced Shipping Notice) covers the receipt, checking and further processing of shipping notices with which suppliers announce incoming consign
- Assignment prohibitionAbtretungsausschluss · Abtretungsklausel · assignment prohibitionAn assignment prohibition is a contractual clause that prohibits a contracting party from assigning claims arising from the contract to third parties. In indust
- Audit ChecklistAudit checklist · Inspection checklist · Audit guideAn audit checklist is a structured inspection document with which purchasers and quality managers systematically evaluate suppliers, processes or sites. It defi
- Audit PlanAudit planning · Audit schedule · PrüfplanThe audit plan is a structured document or planning overview that defines which audits are to be carried out in a defined period at which suppliers, internal de
- Audit rightsPrüfungsrecht · Audit clause · Supplier audit rightAudit rights refer to the contractually agreed right of a buyer to carry out inspections at its suppliers and service providers or to have them carried out by t
- Automatic account assignmentautomatic account assignment · account determination · Account AssignmentAutomatic account assignment refers to the system-supported allocation of posting accounts, cost centres and tax codes to purchasing line items without an emplo
- Automatic Contract Renewaltacit renewal · evergreen clause · evergreen contractAutomatic contract renewal (also known as tacit renewal or an evergreen clause) automatically extends a supply or framework agreement by a fixed term unless not
- Automatic replenishment planningautomatic purchase requisition · auto-planning · automated replenishmentAutomatic replenishment planning refers to the system-supported determination of replacement requirements and the purchase requisitions derived from it in the E
- Automatic spend classificationSpend Classification · Spend-Kategorisierung · Automated Spend AnalysisAutomatic spend classification refers to the system-supported assignment of procurement volume to standardised commodity groups and classification systems such
- Available to Promise (ATP)ATP · Available-to-Promise · available-to-promise quantityAvailable to Promise (ATP) denotes the quantity of a product or component that can be firmly promised to a customer for a specific date. The figure results from
- Average Inventorydurchschnittlicher Bestand · Average Inventory · mittlerer LagerbestandAverage inventory refers to the average quantity of goods, raw materials, semi-finished and finished products held in stock over a given period. It is a key bus
- 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 Documentation NoteVergabeniederschrift · Vermerk über die Vergabeentscheidung · Award documentationThe award documentation note is the written record of the essential considerations and decisions in the course of a purchase or public procurement. It establish
- Award policiesVergabe-/Beschaffungsrichtlinien · procurement policy · purchasing policyAward policies are internal rulebooks that define how companies source requirements, involve suppliers and award contracts. They create binding standards for ap
- 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
- Backorder rateBackorder Rate · Backorder-Ratio · RückstandsquoteThe backorder rate denotes the proportion of purchase orders or customer orders that cannot be delivered on time as of the reference date and are held open as a
- BANF-PO lead timeLead Time Requisition to PO · BANF-PO time · Requisition-to-Order-Cycle-TimeBANF-PO lead time refers to the period between the approval of a purchase requisition and the initiation of the associated purchase order (PO). It is one of the
- Bank GuaranteeBank suretyship · Guarantee · Advance Payment GuaranteeThe bank guarantee (Bank Guarantee) is an instrument by which a bank independently undertakes to pay, or to ensure contractual performance, to a third party on
- Bank Guarantee/SuretyshipBank guarantee · Guarantee on first demand · Performance GuaranteeA bank guarantee or suretyship is a liability-covering instrument whereby a bank or insurer, on behalf of its customer, assures the fulfilment of a contractual
- Bank statement reconciliation (AP)Accounts Payable Reconciliation · AP reconciliation · Supplier account reconciliationBank statement reconciliation in Accounts Payable (AP) is the systematic reconciliation of payments posted on the bank account with open and settled liabilities
- 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 clausePreisbenchmarking · Benchmarking Clause · Market Price Comparison ClauseA benchmarking clause is a contractual provision that links price or term adjustments to the outcome of an agreed market comparison. It ensures that framework p
- 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
- BIC/SWIFTSWIFT code · SWIFT BIC · Bank Identifier CodeBIC/SWIFT is the international Bank Identifier Code used to uniquely address banks worldwide. For buyers and supply chain managers, the correct BIC is particula
- Bid evaluationBid Evaluation · Offer Review · AngebotsbewertungBid evaluation is the systematic review and assessment of bids received in response to price enquiries, tenders or framework agreements. It ensures that bids ar
- 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
- Bid MatrixBidder Matrix · Bid Matrix · Bid TabulationThe bid matrix is a tabular bid overview in which the prices and terms of all bidders in a tendering process are set side by side. It makes price differences, i
- Bid openingBid Opening · Angebotseröffnung · Öffnung der AngeboteBid opening is the formal step in which bids received in response to a request for proposal are opened after expiry of the bid deadline and made visible for the
- Bid protestbid protest · protest in the tendering procedure · bid challengeA bid protest is the formal complaint about a procedural error or rule violation in the tendering or procurement process raised by one of the bidders involved i
- Bid registerBieterliste · Bieterverzeichnis · Bid RegisterThe bid register is the structured documentation of all suppliers participating in a tender or request. In addition to master data, it typically records submiss
- Bidder CommunicationBidder Communication · Bidder Management · Q&A Phase in ProcurementBidder communication encompasses all formal and substantive interactions between a purchasing company and the participants in a procurement process, from the an
- Bidder InformationBidder information pack · Tender information · Bid informationBidder information covers all information a potential supplier or service provider receives in the course of a tender or submits for the evaluation of its quota
- 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
- Bidding consortiumARGE · Arbeitsgemeinschaft · KonsortiumA bidding consortium is an association of several legally independent companies that jointly and with a unified declaration submit a bid for a tender. The aim i
- Bill of LadingBill of Lading · B/L · OrderkonnossementThe Bill of Lading (B/L) is the central transport document in international sea freight. It evidences the carrier's receipt of the goods, documents the contract
- Bill of MaterialsBill of Materials · BOM · Engineering BOMThe bill of materials (BOM) is a structured list of all components, parts, raw materials and accessories required to manufacture a product. It defines the quant
- Binding offerbinding offer · binding quotation · firm offerA binding offer is a legally binding offer from a supplier that sets out price, scope of delivery and terms and gives the customer a secure basis for calculatio
- Binding periodBindungsfrist · Angebotsbindung · GültigkeitsfristThe binding period is the period for which a supplier declares its quotation binding and within which the buyer can place an order. It limits the risk of price
- Blanket OrderOfftake agreement · Call-off order · Call-off OrderA blanket order, often referred to in German as an Abnahmevertrag, Abrufauftrag or Rahmenabnahme, is a framework agreement covering a fixed total quantity or a
- Blocked Stock ManagementSperrbestand · Quality Lock · Blocked StockBlocked stock management refers to the systematic control of warehouse stock that has been removed from the free flow of goods and is not available or not salea
- Bonus agreementAnnual bonus · Volume bonus · Revenue bonusA bonus agreement is a contractual commitment under which a supplier grants the buyer a retroactive or ongoing payment for defined purchase volumes or revenue.
- Bottleneck analysisEngpassanalyse · Engpassmanagement · Bottleneck ManagementBottleneck analysis is a systematic procedure for identifying and assessing bottlenecks in supply chains, production processes and procurement structures. It sh
- Bow-Tie AnalysisBow-Tie Method · Bow Tie Analysis · Barrier ModelThe bow-tie analysis is a visual risk management method that depicts the causes, event and consequences of a risk in the shape of a bow tie. It combines cause a
- BudgetingBudgeting · Budgeting process · Zero-base budgetingBudgeting refers to the process of planning, allocating and controlling financial resources in terms of volume and value for defined periods, organisational uni
- Buffer Stocksafety inventory · safety stock · safety stocksA buffer stock is a deliberately built-up inventory of materials, components or assemblies that absorbs demand and supply uncertainties. It safeguards productio
- 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
- Burden notificationComplaint notification · Damage notification · Quality notificationThe burden notification is a formal report with which a company documents that it has been burdened by a defective goods receipt performance, transport damage o
- 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
- Call-offAbrufbestellung · Call-off · Call-off OrderA call-off is the call-based release of a delivery that has already been contractually agreed under a framework agreement or contract. It is used in series prod
- Call-offSchedule agreement · Call-off order · Call-offThe call-off is a two-stage procurement procedure in which a framework agreement fixes quantities and terms for the long term and individual call-off orders tri
- Call-off delivery scheduleDelivery schedule · Delivery call-off · Call-off planA call-off delivery schedule is a binding or semi-binding overview that specifies the type, quantity and dates of recurring deliveries over a longer period. It
- Call-off orderAbrufauftrag · Rahmenbestellung · Call-off orderThe call-off order is an order form in which buyers agree framework quantities or values contractually and call off the actual partial quantities individually a
- Call-off ordercall-off order · release order · blanket releaseA call-off order is an order in which the buyer does not specify delivery quantities and dates immediately, but draws down the requirement over a framework peri
- Capable to Promise (CTP)CTP · Capable-to-Promise · Capacity-based delivery commitmentCapable to Promise (CTP) is a date-checking method in which a delivery commitment is based not only on free stock but on the actually available manufacturing an
- Capacity planningRCCP · Rough-Cut Capacity Planning · Capacity PlanningCapacity planning is the systematic identification, alignment and securing of the available production and delivery capacities required to meet a company's dema
- Capacity PlanningCapacity planning · Capacity management · Resource planningCapacity planning refers to the systematic planning, control and securing of capacities in production, the supply chain and procurement. The objective is to ali
- Capital binding periodKapitalbindung · Capital Binding Period · Cash Conversion CycleThe capital binding period describes how long capital is tied up on average until it flows back as means of payment after an investment or procurement. In procu
- Cargo insuranceWarentransportversicherung · Gütertransportversicherung · Cargo InsuranceCargo insurance is a type of insurance that protects goods during carriage by road, rail, water or air against loss, damage and partial risks. For industrial bu
- Carnet (ATA)ATA Carnet · Merchandise Passport · Admission Temporaire CarnetA Carnet (ATA) is an internationally recognised customs document that enables the temporary export of goods without a fresh customs declaration and, in most cas
- Carrier PerformanceCarrier Scorecard · Carrier Evaluation · Freight Forwarder EvaluationCarrier Performance refers to the systematic measurement and evaluation of the performance of transport providers and freight forwarders across the entire suppl
- Cash Against Documents (CAD)Cash Against Documents · CAD · Documents Against PaymentCash Against Documents (CAD) is a payment and security instrument in foreign trade in which payment to the supplier is tied to the presentation of defined trade
- Cash discount calculationCash discount deduction · Supplier cash discount · Payment discountCash discount calculation assesses a supplier's discount offer for early payment in relation to your own financing costs. It determines whether taking a cash di
- Cash discount processcash discount deduction · payment-term discount · Cash Discount ProcessThe cash discount process covers all steps from the purchase order to payment within the discount deadline: verification of payment terms, invoice approval, sch
- Cash Discount Utilisation RateEarly Payment Discount Rate · Cash Discount Utilization Rate · SkontonutzungsquoteThe cash discount utilisation rate indicates what proportion of procurement volumes is paid while taking advantage of cash discount. It is one of the most impor
- Cash Flow Impact of Payment TermsPayment Terms Impact on Cash Flow · Payment Period Effect · Payables Term EffectThe cash flow impact of payment terms describes how agreed payment periods towards suppliers and customers steer a company's liquidity. Cash inflows and outflow
- Cash-to-Cash CycleCash Conversion Cycle · CCC · Cash-to-Cash CycleThe cash-to-cash cycle (also cash conversion cycle, CCC) describes the period between paying money out to suppliers and the inflow of payments from customer sal
- Catalog Buyingcatalogue order · catalogue buying · catalogue procurementCatalog Buying refers to the procurement of goods and services via electronic supplier catalogues from which buyers or requisitioners select and order items dir
- Catalogue ComplianceKatalogcompliance · Catalog Compliance · Katalogdaten-ComplianceCatalogue Compliance refers to adherence to defined rules and standards in the creation, maintenance and transmission of supplier catalogue data in digital proc
- Catalogue Content ManagementKCM · Catalog Content Management · E-catalogue managementCatalogue content management refers to the systematic maintenance, structuring and provision of product data for electronic procurement catalogues. In industria
- Catalogue managementKatalogmanagement · Catalog Management · E-KatalogCatalogue management comprises the systematic maintenance, structuring and updating of procurement catalogues from which buyers and functional departments retri
- Catalogue ManagementCatalogue Management · Procurement Catalogue · E-CatalogueCatalogue management refers to the systematic creation, maintenance and updating of procurement catalogues in which supplier offers, material master data and pr
- Catalogue quotaKatalogdurchdringung · Catalog Quota · KataloganteilThe catalogue quota describes the proportion of procurement volume or ordering processes that is processed via electronic supplier catalogues. It is a central k
- Catalogue Structureprocurement catalogue structure · e-catalogue structure · electronic catalogue structureThe catalogue structure describes the systematic design of a digital procurement catalogue – that is, the hierarchy, classification and attribution of the items
- 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
- CBAMCarbon Border Adjustment Mechanism · EU Carbon Border Tax · CBAM RegulationCBAM (Carbon Border Adjustment Mechanism) is the European Union's carbon border adjustment system, under which imported, emissions-intensive goods have been sub
- Certificate of Analysis (CoA)CoA · Analysis Certificate · Certificate of Analysis ReportThe Certificate of Analysis (CoA) is an analytical inspection document assigned to the result of a quality inspection of a specific product batch. In procuremen
- Certificate of ConformityCoC · Konformitätserklärung · Conformity CertificateThe Certificate of Conformity (CoC) is a declaration of conformity with which a supplier confirms that delivered products or materials comply with the agreed sp
- Certificate of originProof of origin · Certificate of Origin · CoOThe certificate of origin is a trade document that certifies the country of origin of a good and is frequently required for customs clearance, preferential trea
- CFR (Cost and Freight)Cost and Freight · Incoterms CFR · CFR Incoterms 2020CFR (Cost and Freight) is one of the classic trade clauses of the Incoterms, under which the seller bears the freight costs to the agreed port of destination. H
- Change ManagementEngineering Change Management · ECM · ECRChange management (Engineering Change Management, ECM) refers to the structured process for planning, assessing, approving and implementing changes to products,
- Change of ControlCoC · change of control · change of ownershipChange of Control refers to a change in the controlling influence over a company, for example through the sale of shares, a merger or a restructuring. For buyer
- Change Ordersamendment order · variation order · change requestA change order is a formally documented amendment to an order that has already been placed or is in progress, for example concerning scope, specification, deliv
- Change-order clausechange-order agreement · amendment clause · variation clauseThe change-order clause is a contract provision that governs how changes to an existing order, a framework agreement or a development assignment are bindingly a
- Changing call-off ordersCall-off change · Amend call-off · Change release orderChanging call-off orders means the targeted adjustment of call-offs already released under framework or contract orders, for example quantity, delivery date or
- Child labour risk assessmentKinderarbeitsrisiko-Analyse · Child Labour Risk Assessment · Menschenrechtsrisikoanalyse KinderarbeitThe child labour risk assessment is a structured process for identifying, evaluating and minimising the risk of child labour occurring in one's own supply chain
- CIFCost, Insurance and Freight · Cost Insurance and Freight · Incoterms CIFCIF (Cost, Insurance and Freight) is an international delivery term from the Incoterms stipulating that the seller bears the transport costs and a transport ins
- CIP (Carriage and Insurance Paid to)Carriage and Insurance Paid to · CIP Incoterm · CIP Incoterms 2020CIP stands for 'Carriage and Insurance Paid to' and is one of the eleven Incoterms rules of the International Chamber of Commerce (ICC). It stipulates that the
- Circular EconomyCircular Economy · circular economy · Closed-LoopThe circular economy describes an economic model in which materials and products remain in use, reuse, reprocessing and recycling for as long as possible, inste
- Claim ManagementClaims management · Claim handling · Contract claims managementClaim management refers to the structured identification, assessment, negotiation and settlement of claims between companies and their suppliers or customers. I
- Clarification Roundclarification round · question and answer phase · Q&A roundThe clarification round is a structured phase in the procurement process in which buyers and suppliers clarify open questions about a request for quotation befo
- Classification rateClassification Rate · Classified Items Ratio · ArtikelklassifizierungsquoteThe classification rate indicates what proportion of the materials, items or services in an organisation's master data is fully classified according to a recogn
- Clean-Sheet CalculationShould Costing · Should-Cost Analysis · Clean Sheet AnalysisClean-sheet calculation is a strategic procurement method in which the costs of a product or assembly are recalculated from the ground up – so to speak on a “bl
- CMR consignment notee-CMR · CMR-Frachtschein · Frachtbrief CMRThe CMR consignment note is the international transport document for cross-border road freight transport and is based on the Convention on the Contract for the
- Co-creation with suppliersEarly Supplier Involvement · ESI · Supplier CollaborationCo-creation with suppliers describes the early, partnership-based collaboration with suppliers in the development of products, processes or services. Rather tha
- Co-DevelopmentCollaborative Development · Joint Development · Supplier IntegrationCo-Development refers to the early, contractually regulated collaboration between a company and its suppliers in the development of products, components or manu
- CO2 PriceCarbon Price · CO2 Pricing · CO2 Shadow PriceThe CO2 price is the monetary price that emitters must pay for emitting carbon dioxide or CO2 equivalents, whether via certificates, taxes or levies. For indust
- CO2eCO2 equivalent · carbon dioxide equivalent · CO2 equivalentCO2e stands for CO2 equivalents and denotes the unit in which all greenhouse gas emissions are uniformly measured and compared. For buyers, CO2e is increasingly
- Commercial InvoiceCommercial Invoice · Export Invoice · Customs InvoiceThe commercial invoice, in German Handelsrechnung, is the central settlement and evidence document for cross-border goods deliveries. It documents the obligatio
- Commodity code determinationWarennummer · Zolltarifnummer · HS codeCommodity code determination refers to the systematic process of identifying the correct classification numbers for goods purchased or sold – in particular cust
- 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 Price VolatilityRohstoffpreisvolatilität · Commodity Price Volatility · MaterialpreisvolatilitätCommodity price volatility refers to fluctuations in the market prices of commodities such as metals, plastics, electronic components or energy sources over sho
- 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
- Competitive DialogueCompetitive Dialogue · VgV procedure · dialogic procurement procedureThe Competitive Dialogue is a procurement procedure in which the public contracting authority negotiates with potential bidders about finding a solution in stru
- Complaint AssessmentReklamationsbeurteilung · Reklamationsprüfung · complaint evaluationComplaint assessment is the systematic process by which procurement and quality managers examine, weigh and decide on further measures regarding incoming object
- Complaint rateComplaint Rate · Claim Rate · RMA RateThe complaint rate is a key quality metric describing the ratio of objected deliveries or units to the total quantity. In industrial procurement it serves as an
- Complaint Raterejection rate · complaint rate · complaint ratioThe complaint rate is a central quality key figure in procurement and describes the proportion of rejected deliveries or parts as a share of the total quantity
- Complaint reportMängelrüge · Reklamation · ComplaintThe complaint report is the formal, usually written or system-supported objection to a defective or non-conforming delivery or service. It documents the nature,
- Complaints managementBeschwerdemanagement · Mängelmanagement · Claim ManagementComplaints management refers to the structured handling of complaints about delivered goods or services along the entire supply chain. It combines quality manag
- 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.
- Compliance ProcurementCompliance Management in Procurement · Procurement Compliance · Purchasing ComplianceCompliance procurement refers to the entire set of policies, processes and controls by which procurement departments ensure that all purchasing activities compl
- ConfidentialityConfidentiality · NDA · Non-Disclosure AgreementConfidentiality refers to the obligation to protect confidential information such as drawings, calculations or trade secrets from unauthorised access. In indust
- Confidentiality levelSecurity Classification Level · Geheimhaltungsstufe · SchutzstufeThe confidentiality level assigns information, documents and business data in procurement to a defined protection category. It specifies who may view, share or
- Conflict Mineralsconflict minerals · 3TG · 3T+GConflict minerals are minerals and metals whose extraction and trade in conflict-affected or high-risk areas can finance human rights abuses and violence. For i
- Conflict Minerals Certificate of OriginCMRT · Conflict Minerals Reporting Template · 3TGThe certificate of origin for conflict minerals documents the sources from which tin, tantalum, tungsten and gold (3TG) in delivered products originate. For buy
- Consensus ForecastConsensus Forecast · Consensus Demand Forecast · Demand ConsensusThe Consensus Forecast is an aligned demand forecast in which the assessments of sales, marketing, production, logistics and procurement are consolidated into a
- Consignment agreementconsignment contract · consignment stock · co-management warehouseA consignment agreement is a contractual model in which a supplier holds goods in a warehouse operated at the buyer's premises without yet supplying them. Owner
- Consignment stockConsignment Stock · Consignation Warehouse · Consignment InventoryA consignment stock is a stock in which the supplier's goods are physically held at the buyer's premises but legally remain the supplier's property until withdr
- Consumption ForecastDemand Forecast · Demand Forecast · ForecastingThe consumption forecast is the quantitative estimate of future material and goods consumption based on historical consumption data, current incoming orders and
- Consumption-Based Replenishmentconsumption-based replenishment · consumption-based planning · reorder point methodConsumption-based replenishment is a demand determination method in which items are replenished automatically based on actual consumption – without a specific c
- Container TypesFreight containers · ISO containers · Sea freight containersContainer types refer to the standardised designs of transport and cargo containers used in international freight transport by sea, rail and road. For buyers an
- ContainmentInterim Containment Action · Containment measure · Immediate measureIn procurement and quality management, containment refers to the immediate containment and shielding of defective parts or processes in order to prevent further
- Content EnrichmentData enrichment · Product Content Enrichment · Data preparationContent Enrichment refers to the systematic enrichment, validation and preparation of product and master data so that they are unambiguously usable for searcher
- 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
- Contract ComplianceVertragskonformität · Contract adherence · Contractual ComplianceContract compliance refers to ensuring that all procurement contracts are actually adhered to – both on the supplier side and within the company itself. It link
- Contract for servicesDienstleistungsvertrag · Servicevertrag · service contractA contract for services is a contract under the law of obligations under which the contractor undertakes to render a service, while the client owes the remunera
- Contract for workWerkliefervertrag · Werkvertrag BGB · WerkvertragstypThe contract for work is a central contract type under German law of obligations and governs the production of a work outcome against remuneration. For buyers i
- Contract for work vs. service contractContract for work · Service contract · Contract for work and servicesContracts for work and service contracts differ fundamentally in whether the contractor owes an outcome or merely their activity. For buyers in manufacturing in
- Contract ManagementContract Management · Contract Controlling · Supply Contract ManagementContract management refers to the systematic planning, design, implementation and monitoring of contracts throughout their entire life cycle. In industrial proc
- Contract manufacturingAuftragsfertigung · Werklohnfertigung · Contract ManufacturingContract manufacturing refers to the order production of components, parts or products by an external service provider working on the basis of the customer's sp
- Contract manufacturingLohnfertigung · Fremdfertigung · Contract ManufacturingContract manufacturing refers to the outsourcing of individual production steps or complete work packages to external suppliers who manufacture on demand or acc
- Contract ManufacturingContract production · Toll manufacturing · Contract Manufacturing ServicesContract manufacturing refers to the outsourcing of production services to external contract manufacturers, who produce according to drawings, specifications or
- Contract NegotiationContract Negotiation · Terms Negotiation · Price NegotiationContract negotiation is the process in which buyer and supplier negotiate and conclusively agree the terms of a business relationship. In industrial procurement
- Contract RenewalContract Renewal Management · contract extension · supply contract extensionContract renewal refers to the planned extension or re-tendering of an existing supply contract before its term expires. In industrial procurement, renewal is a
- Contract RepositoryVertragsrepository · Vertragsdatenbank · Contract Repository SystemA contract repository is a central, systematically managed storage location for all of a company's contracts, in particular supply and framework agreements in p
- Contract termLaufzeit · Vertragsdauer · Contract TermThe contract term denotes the period for which a contract between the contracting party and the supplier is concluded. In procurement, it determines how long co
- Control of Nonconforming ProductNonconforming Product Control · Nonconformity Management · Control of NonconformityControl of Nonconforming Product refers to the systematic identification, documentation, isolation and reworking of products or parts that fail to meet agreed r
- Control Plancontrol plan · process control plan · quality control planThe control plan is a central quality assurance document that systematically defines how a manufacturing process is monitored and controlled. For each process s
- Corporate Sustainability Due Diligence (CSDDD)CSDDD · CSDD · EU Due Diligence DirectiveThe Corporate Sustainability Due Diligence (CSDDD) is an EU Directive that obliges companies to identify, prevent, mitigate and remediate human rights and envir
- Corporate Sustainability Due Diligence Directive (CSDDD)CS3D · EU supply chain due diligence · Corporate Sustainability Due DiligenceThe Corporate Sustainability Due Diligence Directive (CSDDD) is an EU directive obliging companies to exercise human rights and environmental due diligence in t
- Corporate Sustainability Reporting Directive (CSRD)EU Sustainability Reporting Directive · CSRD Directive · Sustainability Reporting DirectiveThe Corporate Sustainability Reporting Directive (CSRD) is an EU directive requiring companies to expand and standardise their sustainability reporting. It is r
- Cost Avoidancecost avoidance savings · avoided costs · cost preventionCost avoidance refers to the prevention of costs that would have arisen without countermeasures taken by procurement, without these being directly reflected in
- Cost BreakdownCost Breakdown · Cost Structure Breakdown · Cost DecompositionThe cost breakdown, also known in German as Kostenaufschlüsselung or Kostenstrukturaufstellung, is the detailed breakdown of the price of a service or component
- 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
- Cost-Benefit AnalysisCost-Benefit-Analyse · Nutzwertanalyse · TCO-AnalyseThe cost-benefit analysis is a systematic method for evaluating measures, projects or procurement decisions in which all identifiable costs and benefits are com
- Cost-markup calculationAufschlagsrechnung · Aufschlagskalkulation · ZuschlagsrechnungThe cost-markup calculation is a product costing method in which the selling price of a product or service is determined by applying a percentage profit and ris
- 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
- Cpk/Process Capabilityprocess capability index · Process Capability Index · Cp/CpkCpk (Process Capability Index) is a metric that describes how well a production-related process is able to consistently comply with defined tolerance limits. Fo
- CPT (Carriage Paid To)Carriage Paid To · Incoterms CPT · CPT Incoterm 2020CPT (Carriage Paid To) is one of the eleven Incoterms® rules that determine which contracting party bears transport costs and the transfer of risk in internatio
- Credit checksBonitätsanalyse · Kreditwürdigkeitsprüfung · Credit CheckA credit check is the systematic assessment of the financial performance capability of a business partner, in particular its ability to meet contractual obligat
- Credit NoteCredit Note · Kreditbeleg · RechnungskorrekturbelegA credit note is a commercial document by which a seller or supplier reduces a receivable in full or in part or refunds money to the customer. In industrial pro
- Credit Note Procedure (ERS)ERS · Evaluated Receipt Settlement · Pay from ReceiptThe credit note procedure, internationally also known as Evaluated Receipt Settlement (ERS), is a method for processing supplier payments in which the invoice i
- Crisis Communication with SuppliersSupplier Crisis Communication · Lieferantenkrisenkommunikation · Crisis Communication in der LieferketteCrisis communication with suppliers refers to the structured, timely information of suppliers about disruptions, failures or far-reaching changes in the busines
- 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 DockingCrossdocking · Direct transfer · Flow-through distributionCross docking is a logistics method in which incoming goods are received at the transhipment point, sorted immediately and transferred directly to outbound tran
- 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
- Cross-Selling in ProcurementSupplier cross-selling · Supplier cross-selling · Volume consolidation with incumbent suppliersCross-selling in procurement refers to the deliberate expansion of purchasing volume with suppliers with whom a business relationship already exists, by awardin
- Currency hedging (FX)FX Hedging · Devisenabsicherung · Currency HedgingCurrency hedging (foreign exchange hedging, FX) refers to the protection of cash flows and contract values against fluctuations in exchange rates. In industrial
- Currency Risk in ProcurementExchange rate risk in procurement · Foreign currency risk · Currency RiskCurrency risk in procurement refers to the danger that exchange rate fluctuations between the purchasing currency and the reporting currency negatively affect p
- Customs agentcustoms agency · customs broker · Customs AgentA customs agent is a licensed service provider that represents companies in handling customs and foreign trade matters. For industrial buyers and supply chain m
- Customs clearanceZollabwicklung · Customs Clearance · EinfuhrabfertigungCustoms clearance refers to the customs handling of goods across a customs border, including declaration, valuation, classification and payment of duties as wel
- Customs clearanceCustoms Clearance · Zollabfertigung · ZollanmeldungCustoms clearance covers all the steps required to bring goods legally across a customs border – from declaration and document checks to payment of duties. For
- Customs Tariff Classificationcustoms classification · tariff classification · HS classificationCustoms tariff classification is the systematic assignment of goods to customs tariff codes (commodity codes or HS codes) as the basis for duty rates, export an
- Customs tariff numberHS Code · Commodity Code · CN CodeThe customs tariff number is the codified classification of a good within the international customs tariff system and determines the duty rate, goods statistics
- Customs warehouseZolllagerverfahren · Customs Warehouse · Type A customs warehouseA customs warehouse is a customs-approved warehouse in which imported goods can be stored free of duty and tax under EU customs supervision. For technical buyer
- cXMLcommerce eXtensible Markup Language · cXML Punchout · cXML standardcXML (commerce eXtensible Markup Language) is an XML-based standard for the automated exchange of business documents between procurement systems and suppliers.
- Cycle CountingDauerinventur · permanente Inventur · perpetual inventoryCycle counting refers to the permanent, continuous stocktaking of inventory in which items are counted in defined cycles rather than on a single cut-off date. F
D
- D-U-N-S Number (DUNS)DUNS · Data Universal Numbering System · D&B DUNS NumberThe D-U-N-S number (DUNS) is a globally unique, nine-digit identification number for businesses, assigned and maintained by the data service provider Dun & Brad
- Dangerous Goods ManagementDangerous Goods Management · DG-Management · GefahrgutbeauftragterDangerous goods management refers to the systematic planning, control and monitoring of all processes relating to the procurement, transport, storage and dispos
- DAPDelivered At Place · Incoterms DAP · delivered at placeDAP (Delivered At Place) is a delivery term under the Incoterms under which the seller transports the goods to the named place of destination and makes them ava
- Data analysis in procurementProcurement analysis · Spend analysis · Spend managementData analysis in procurement refers to the systematic collection, preparation and evaluation of purchasing data in order to make fact-based decisions. It combin
- Data catalogueitem catalogue · material catalogue · master data catalogueThe data catalogue is a structured, central collection of descriptive data on materials, standard and catalogue parts, services and suppliers. In technical proc
- Data cleansingData Cleansing · Datenqualität · Master data cleansingData cleansing refers to the systematic review, correction and enrichment of data records, in particular material, supplier and procurement master data. In indu
- Data controlData control in procurement · Data Governance · Master data controlData control refers to the systematic review, approval and continuous monitoring of master data, transaction data and process data along the entire procurement
- Data LakeData Lakehouse · Data Swamp · LakehouseA data lake is a central, scalable repository in which companies consolidate data in its original, raw format from a wide variety of sources. For technical proc
- Data modeldata structure · data architecture · entity-relationship modelA data model describes the structured representation of objects, attributes and relationships in an information system, for example for material master records,
- Data QualityData Quality · Stammdatenqualität · Master Data QualityData quality describes the degree to which master data and process data in procurement are complete, correct, up-to-date, consistent and unambiguous. For techni
- Data quality KPIsdata quality KPIs · data quality metrics · DQ KPIsData quality KPIs are measurable indicators that quantify the quality of master data, transaction data and supplier data in the procurement process. They reveal
- Data Quality ReportData Quality Report · DQ-Report · DatenqualitätsreportA data quality report is a structured document that systematically evaluates and presents the quality of procurement and master data. It shows where material ma
- Data Quality ScoreDQS · Data Quality Index · DatenqualitätskennzahlThe data quality score is a metric that assesses the quality of data stocks – in particular item master data, supplier data and transaction data – on a scale. F
- Data StewardData Stewardship · Data Custodian (colloquial) · Data Governance roleThe Data Steward is a role in data management responsible for the quality, consistency and maintenance of defined data populations. In procurement and supply ch
- Days Inventory Outstanding (DIO)DIO · Days Inventory · inventory holding period in daysDays Inventory Outstanding (DIO) denotes the average number of days a company holds its inventory before it is sold or processed. The metric sets the average in
- Days Payable Outstanding (DPO)DPO · Days Payable · Payables DaysDays Payable Outstanding (DPO) denotes the average period, in days, within which a company settles its trade payables. The metric reveals how long a company act
- Days Sales Outstanding (DSO)Receivables days · Debtor days · DSODays Sales Outstanding (DSO) is a business KPI that indicates how many days, on average, elapse between invoicing and payment receipt from the customer. For buy
- DDP (Delivered Duty Paid)Delivered Duty Paid · Incoterms DDP · DDP Incoterms 2020DDP (Delivered Duty Paid) is a delivery term from the Incoterms rules under which the seller delivers the goods to the named destination, handles import customs
- Deadline monitoringExpediting · Deadline control · Purchase order monitoringDeadline monitoring refers to the systematic checking and tracking of promised delivery and performance dates across the entire procurement process. It ensures
- Declaration of ConformityKonformitätserklärung EU · Declaration of Conformity · DoCThe Declaration of Conformity is a formally binding declaration by the manufacturer that a product complies with the applicable statutory and technical requirem
- 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
- Delivery call-off adherenceAbruftreue · Abruf-Treue · delivery call-off adherenceDelivery call-off adherence denotes the extent to which suppliers actually comply with the quantities and dates of call-off orders placed under a framework agre
- Delivery Call-off ContractAbrufvertrag · Abrufauftrag · FreigabeauftragThe delivery call-off contract is a contractual arrangement in which a framework agreement fixes the quantities and terms, while actual orders are only triggere
- Delivery capabilityDelivery Capability · Supply Capability · OTIFDelivery capability describes a supplier's ability to deliver the agreed products or services in the required quantity and quality on the agreed date. It is one
- Delivery conceptsLieferkonzept · Anliegervorschrift · Delivery ConceptDelivery concepts describe the structured definition of how materials, components and assemblies are delivered to a company, both physically and in terms of dat
- Delivery date commitmentsTerminbestätigung · Order Confirmation · Delivery PromiseDelivery date commitments are the binding or semi-binding dates stated by a supplier by which goods or services will arrive at the customer. They form the opera
- Delivery Date Deviation AnalysisOTD analysis · On-Time Delivery Analysis · On-Time Delivery AnalysisDelivery date deviation analysis is a systematic evaluation of the deviations between agreed and actual delivery dates. It forms part of the core toolkit of sup
- Delivery Date TrackingTerminverfolgung · Delivery Tracking · ExpeditingDelivery date tracking refers to the systematic monitoring of confirmed and planned delivery dates throughout the entire procurement process. It ensures that or
- Delivery Date TrackingOrder Tracking · Date Controlling · Delivery TrackingDelivery date tracking refers to the systematic monitoring of confirmed delivery dates on purchase orders throughout the entire procurement period. It is a cent
- Delivery dunning noticeMahnung Lieferverzug · Delivery Reminder · Past-Due-NotificationA delivery dunning notice is a formal demand to a supplier to perform an overdue or imminent delivery on time and in the agreed quantity. It marks the escalatio
- Delivery lead time variabilityLieferschwankung · Liefertreue-Streuung · Delivery Time VarianceDelivery lead time variability describes the range of fluctuation of actual delivery times around the agreed or planned date. Alongside on-time delivery, it is
- Delivery PerformanceOTIF · On Time In Full · Delivery ReliabilityDelivery Performance refers to a supplier's ability to reliably adhere to agreed delivery dates, quantities and qualities. In industrial procurement management,
- Delivery reliabilityDelivery date reliability · OTIF · On Time In FullDelivery reliability denotes the proportion of deliveries that arrive at the customer on the agreed date or within the agreed delivery window. It is one of the
- Delivery Scheduledelivery call · release schedule · delivery scheduleThe delivery schedule is a quantity- and date-oriented instruction transmitted from the customer to the supplier specifying which parts are to be delivered in w
- Delivery Schedule AgreementAbrufvertrag · Abrufauftrag · Call-off ContractA Delivery Schedule Agreement (DSA) is a long-term supply contract that governs the binding acceptance of quantities over a planning horizon, while the specific
- Delivery schedule call-offAbrufauftrag · Call-off · AbrufbestellungThe delivery schedule call-off is a proven operational procurement instrument in which contractually agreed quantities are called off over defined periods throu
- Delivery schedule tolerance bandsLieferplan-Toleranz · delivery tolerance band · Mengen- und TermintoleranzDelivery schedule tolerance bands define the range within which deviations from the confirmed or planned delivery quantity and from the delivery date are accept
- Delivery service levelDelivery reliability · OTIF · On Time In FullDelivery service level is a central metric in supplier management and describes how reliably a supplier fulfils agreed deliveries in the correct quantity and qu
- Delivery timeLead Time · Vorlaufzeit · Delivery Lead TimeDelivery time is the period between the order or order confirmation and the goods receipt at the customer. In industrial procurement, it is one of the most impo
- 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
- Demand confirmationrequirement request · purchase requisition · material requestThe demand confirmation is the binding feedback from a requirement owner – for example from engineering, production or maintenance – regarding the type, quantit
- Demand notificationdemand request · purchase requisition · demand notification PPSA demand notification is the formal notification of a material or immaterial requirement by an internal functional department to procurement. It marks the start
- Demand PlanningMaterial requirements planning · Requirements plan · Demand PlanningDemand planning refers to the systematic determination, quantification and scheduling of a company's future requirements for materials and services. It forms th
- Demand PlanningDemand Forecasting · Demand Planning · Sales ForecastingDemand Planning refers to the systematic forecast of future demand for products, components and materials based on historical data, market indicators and planne
- Demand SensingDemand Sensing Forecast · Demand Sensing · Short-Term ForecastingDemand sensing refers to the refinement of demand forecasts using current, often daily-level data from sales, retail and the supply chain. For procurement profe
- DemurrageDetention · Storage · Container demurrageDemurrage refers to charges incurred when containers or means of transport exceed agreed standing times and therefore remain tied up longer than permitted with
- Design FreezeDesign Freeze Point · Design Freeze · Design Freeze GateThe design freeze marks the binding point in time at which a product's design is definitively completed and locked against further changes. From that moment, th
- 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
- Detailed Procurement Capacity PlanningCapacity fine planning · Detailed procurement planning · Procurement capacity planningDetailed procurement capacity planning is the operational detailing of strategic procurement planning on a weekly and monthly basis. It determines which supplie
- DetentionDetention Charge · Container Detention · StandgeldDetention refers to the charge levied by shipping lines or container lessors when import containers are not returned to the carrier promptly by the consignee af
- Deviation approvalDeviation Request · Deviation Approval · ConcessionThe deviation approval is the formalised procedure by which a customer or manufacturer releases a temporary or permanent deviation from a drawing, standard, spe
- Digital Contract ManagementCLM · Contract Lifecycle Management · Contract Management SoftwareDigital contract management refers to the computer-supported creation, negotiation, approval, storage and monitoring of contracts throughout their entire lifecy
- Digital ProcurementDigital Procurement · E-Procurement · Digital PurchasingDigital procurement refers to the holistic digitalisation of purchasing processes along the source-to-pay chain. It covers digital enquiries, supplier qualifica
- Digital Supply Chaindigital supply chain · Digital Supply Network · DSNThe Digital Supply Chain refers to the end-to-end digital networking of all processes, data flows and actors along the supply chain – from demand planning throu
- Direct AwardDirektbeauftragung · freihändige Vergabe · Single-Source AwardDirect award refers to the commissioning of a supplier without a preceding competitive round, for example without a formal tender or multi-stage request for quo
- Direct deliveryDirektbelieferung · direct delivery · DirektlieferungDirect delivery describes the logistics variant in which a supplier does not deliver the goods to the buyer's warehouse or plant, but directly to the end recipi
- Disaster Recovery (DR)DR · emergency recovery · IT contingency planDisaster Recovery (DR) comprises all organisational, technical and contractual measures to restore the operation of critical systems, processes and supply relat
- Disposition in ProcurementMaterial disposition · Demand disposition · Procurement dispositionDisposition in procurement comprises the systematic determination of which requirement is covered, in what quantity, at what point in time and through which rou
- Disposition Parameter MaintenanceDISO parameter maintenance · Disposition parameter maintenance · Material master maintenance planningDisposition parameter maintenance refers to the continuous updating and monitoring of the master data and parameters that control automatic planning systems in
- Dock AppointmentTime Slot Management · Slot Booking · Delivery AppointmentDock appointment refers to the scheduling of a loading bay (dock, gate, ramp) for inbound or collection deliveries between the shipper, the haulier and the rece
- Dock-to-StockDock to Stock · D2S · Dock-to-Stock timeDock-to-Stock refers to the process path of a good from its arrival at goods receipt (dock) until it is available in warehouse stock (stock). The aim is to make
- Document VerificationBelegprüfung · Document Verification · Three-Way MatchDocument verification refers to the systematic examination of commercial and accompanying papers as well as business documents for completeness, conformity and
- Down PaymentDown Payment Guarantee · Advance Payment · Advance PaymentThe down payment is a partial payment made by the buyer to the supplier before full performance has been rendered. It secures the binding nature of a contract,
- DPO Impact SimulationDays Payable Outstanding Simulation · DPO Simulation · Payment Term SimulationThe DPO impact simulation is a quantitative planning method with which buyers and finance functions simulate the effects of changed payment terms on Days Payabl
- DPUDelivered at Place Unloaded · DAT · Incoterms DPUDPU (Delivered at Place Unloaded) is one of the eleven Incoterms rules and denotes delivery from the unloading point. The seller bears all costs and risks up to
- 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
- Dual-use goodsdual-use goods · dual-use items · goods with dual civilian and military usesDual-use goods are goods, software and technologies that can be used both for civilian and for military purposes. For buyers and suppliers in DACH industry, thi
- Due DiligenceDue care examination · due diligence · DDDue diligence denotes the systematic examination of a business partner, company or investment before the conclusion of a contract. In industrial procurement, it
- Dunning runDunning run · Dunning process · Dunning procedureThe dunning run refers to the systematic, usually automated process of working through dunning levels to collect overdue receivables or to follow up on open pur
- DUNS numberD-U-N-S number · DUNS Number · D&B DUNSThe DUNS number is a globally unique nine-digit identification number for companies, issued and managed by Dun & Bradstreet. In technical procurement, it serves
- Duplicate CheckingDuplikatprüfung · Duplicate Check · DatenbereinigungDuplicate checking refers to the systematic identification and cleansing of duplicate records in master data inventories, in particular supplier and material ma
- Duplicate DetectionDuplicate Detection · Dublettenprüfung · Duplicate Record DetectionDuplicate detection refers to the systematic identification of duplicate records in material master data, supplier, customer and order data. It is a core discip
- Duplicate scoreDuplikatscore · Duplicate Score · DatenqualitätsscoreThe duplicate score is a key figure that measures how free master data sets – such as material, supplier or item masters – are from duplicate entries. It is typ
- Dynamic discountingvariable discount terms · tiered discount · dynamic discountingDynamic discounting is a variant of the early payment discount in which the deduction amount or period is agreed flexibly rather than fixed. Unlike classic disc
- Dynamic DiscountingDD · dynamic early payment discount · flexible discountingDynamic discounting denotes a method of supplier financing management in which payment terms and early payment discounts are not fixed rigidly but negotiated an
- Dynamic safety stockdynamic minimum stock · adaptive safety stock management · dynamic safety stockDynamic safety stock is an inventory buffer that is regularly recalculated and adapts to changing demand and delivery patterns. Unlike a static, fixed safety st
E
- E-AuctionReverse Auction · Online Auction · Electronic AuctionThe e-auction, also known as an online auction or reverse auction, is a digital process in which suppliers compete in real time for a contract within a defined
- E-Auction PreparationE-Auction · Reverse Auction · Electronic AuctionE-Auction preparation encompasses all the steps for the structured planning and execution of an electronic auction within the procurement process. It is a decis
- E-ProcurementElectronic Procurement · electronic procurement · e-procurementE-Procurement refers to the electronic handling of procurement processes via digital systems and platforms – from demand identification through quote comparison
- E-procurement in purchasingElectronic Procurement · E-Beschaffung · elektronische BeschaffungE-procurement in purchasing refers to the electronic handling of procurement processes – from demand requisition through ordering to invoice processing – using
- E-SourcingeSourcing · eRFX · Electronic SourcingE-Sourcing refers to the support or execution of sourcing processes – from requirements identification through supplier search to contract award – via digital s
- Early payment discount (Skonto)Zahlungsskonto · Bargeldrabatt · Cash discountAn early payment discount (Skonto) is a price reduction granted by a supplier if the invoice amount is settled within a short period, typically 8 to 14 days. Fo
- Early Payment Discount InvoicesSkonto · cash discount · early payment discountAn invoice with early payment discount (Skontorechnung) is an invoice on which the supplier grants the buyer a price reduction for payment within a short period
- Early payment programmeEarly Payment · Early payment · Discount programmeAn early payment programme is an agreed procedure whereby a buyer settles supplier invoices before the actual payment term – typically in return for a discount
- Early Supplier InvolvementESI · early supplier involvement · Early InvolvementEarly Supplier Involvement (ESI) refers to the early involvement of suppliers in product development and procurement decisions, before the design and specificat
- Early Warning IndicatorsEarly Warning Indicators · Frühwarnsystem · Risk IndicatorsEarly warning indicators are measurable metrics that in procurement and the supply chain point to impending disruptions before they manifest in delivery problem
- ECLASSeCl@ss · ECLASS standard · ECLASS classificationECLASS is an internationally established standard for the classification and unambiguous description of products and services, managed by ECLASS e. V., based in
- Economic Order Quantity (EOQ)EOQ · economic order quantity · optimal order quantityEconomic Order Quantity (EOQ) denotes the most economical order quantity at which the sum of procurement and inventory holding costs per year is minimised. This
- 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
- EDIElectronic Data Interchange · EDIFACT · ANSI X12EDI (Electronic Data Interchange) refers to the standardised electronic exchange of business documents such as purchase orders, despatch advices and invoices be
- Electronic TenderingE-Tendering · Electronic Sourcing · eTenderElectronic tendering refers to the digitally supported execution of tenders and award procedures via electronic platforms. In industrial procurement, it replace
- Emergency ManagementCrisis Management · Emergency Management · Supply Risk ManagementEmergency management refers to the systematic preparation of procurement and supply chain organisations for disruptions to material supply, for example due to s
- Emergency OrdersEilbestellung · Dringlichkeitsbestellung · SofortbestellungAn emergency order is an unplanned purchase that becomes necessary when materials, components or services are suddenly unavailable and regular procurement route
- 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
- EMS (Electronics Manufacturing Services)Electronics Manufacturing Services · EMS providers · Electronics Contract ManufacturingEMS stands for Electronics Manufacturing Services – the outsourcing of development, manufacturing, assembly and logistics for electronic assemblies and devices
- Energy price surchargeEnergiezuschlag · Energy surcharge · EnergiekostenzuschlagThe energy price surcharge is a contractually agreed or unilaterally announced price increase by which suppliers pass on increased costs for electricity, gas or
- Engineering Change Notice (ECN)ECN · Engineering Change Order · ECOThe Engineering Change Notice (ECN) is the formal document by which a product or design change is announced, justified and released. It triggers downstream acti
- ERP IntegrationERP connection · ERP interface · Enterprise Resource Planning integrationERP integration refers to the connection of ERP systems to adjacent systems such as inventory management, production planning, e-procurement, supplier portals o
- Escalation ClausePrice sliding clause · Sliding-price clause · Price adjustment clauseThe escalation clause, in German known as a price adjustment or sliding-price clause, is a contractual provision that links price changes in long-term supply co
- Escalation ProcessEskalationsmanagement · Eskalationsstufen · Escalation ProcessThe escalation process is a predefined, staged procedure for resolving disruptions and conflicts in day-to-day procurement when regular communication at operati
- ESG Risk RatingESG-Rating · ESG-Score · ESG Risk AssessmentThe ESG Risk Rating is a standardised assessment used to measure the risk that a supplier, site or business partner poses in the dimensions of environment (Envi
- ETL Process in ProcurementETL · Extract Transform Load · ETL pipelineThe ETL process in procurement refers to the systematic transfer, cleansing and consolidation of procurement data from different source systems into a central t
- EU TaxonomyEU Taxonomy Regulation · Taxonomy Regulation · EU Sustainable Finance TaxonomyThe EU Taxonomy is a classification system of the European Union that categorises economic activities according to whether they qualify as environmentally susta
- EUDR in ProcurementEU Deforestation Regulation · EU Deforestation Regulation · EUDR complianceThe EUDR (EU Deforestation Regulation, Regulation (EU) 2023/1115) obliges companies to demonstrate that certain raw materials and products derived from them do
- EUR.1 preference certificateEUR.1 movement certificate · preference certificate · certificate of origin movement certificateThe EUR.1 preference certificate is a customs document that proves the preferential origin of goods and thereby enables reduced or zero duty rates under prefere
- Evaluated Receipt Settlement (ERS)ERS · Self-billing · Invoice deductionEvaluated Receipt Settlement (ERS) is a supplier settlement method in which payment is generated not on the basis of a supplier invoice, but automatically from
- Evaluation CriteriaBewertungsmatrix · Kriterienkatalog · Evaluation CriteriaEvaluation criteria are defined benchmarks against which buyers systematically compare and assess offers, suppliers or procurement processes. They translate cor
- Exception ManagementException Handling · Exception Management · Deviation ManagementException Management refers to the systematic identification, prioritisation and handling of deviations from the planned standard process in procurement and the
- Exchange rate clauseWährungsklausel · Währungssicherungsklausel · Currency ClauseThe exchange rate clause is a contractual provision governing how fluctuations between the currencies involved affect prices, price adjustments or the performan
- Exchange Rate FixingFixed-rate agreement · Rate fixing · Currency HedgingExchange rate fixing is a contractual or financial arrangement by which buyers and suppliers fix the conversion rate for future payments for a defined period. I
- Expedite OrderDringlichkeitsbestellung · Rush Order · Expedite OrderAn expedite order is an order with shortened approval and procurement lead times, used when materials or services cannot be made available in time through the r
- Expedite RateExpediting Rate · Expedite-Quote · BeschleunigungsquoteThe expedite rate denotes the proportion of purchase orders or line items that must be actively expedited in the procurement process because they are late or we
- ExpeditingLieferterminüberwachung · Expedition · Order TrackingExpediting refers to the systematic monitoring of delivery progress at the supplier to ensure that agreed delivery dates are met. It includes regular status enq
- Export ControlExport Control · Dual-Use Regulation · AWVExport control refers to the entirety of the legal provisions by which states monitor the export of goods, technology and services across borders. For technical
- Export processingExport Processing · Ausfuhrabwicklung · Export DocumentationExport processing covers all organisational, commercial and official steps between order confirmation and delivery of goods abroad. This includes customs declar
- External manufacturingContract manufacturing · Outsourced production · Outsourcing of productionExternal manufacturing refers to the transfer of production services to external suppliers or contract manufacturers who produce parts, assemblies or complete p
- EXW (Ex Works)Ex Works · ex works · Incoterm EXWEXW (Ex Works, English: ex works) is a delivery term from the Incoterms rules of the International Chamber of Commerce (ICC). It stipulates that the seller only
F
- Factoringsale of receivables · reverse factoring · supply chain financeFactoring is the ongoing sale of outstanding customer receivables to a factoring company, which in return pays out the receivables value immediately, less fees.
- Factoring in procurementSupply Chain Finance · Reverse Factoring · Supplier FinancingFactoring in procurement refers to the deliberate use of factoring arrangements to optimise payment flows between companies and suppliers. While classic factori
- FAS (Free Alongside Ship)Free Alongside Ship · Incoterms FAS · FAS ruleFAS (Free Alongside Ship) is an international delivery rule from the Incoterms governing the handover of goods 'alongside the ship' in the seller's port of ship
- FCA (Free Carrier)Free Carrier · Incoterms FCA · FCA Incoterms 2020FCA (Free Carrier) is a delivery term of the Incoterms rules under which the seller hands the goods over to the carrier nominated by the buyer at the agreed pla
- Fill RateDelivery Reliability · Service Level · Order Fill RateThe fill rate (also delivery reliability or service level) describes the proportion of quantities or line items delivered in line with requirements relative to
- First Article Inspection (FAI)FAI · Erstmusterprüfung · ErstmusterprüfberichtFirst Article Inspection (FAI) refers to the systematic inspection and documentation of a first sample manufactured under series production conditions before a
- First Pass Yield (FPY)FPY · first pass success rate · First Pass Yield RateFirst Pass Yield (FPY) denotes the share of units that pass through a production process or process chain for the first time without scrap, rework or remedial w
- FMEAFailure Mode and Effects Analysis · failure mode analysis · DFMEAFMEA (Failure Mode and Effects Analysis) is a systematic method for identifying potential failures in products and processes before they occur. It originated in
- FOB (Free On Board)Free On Board · FOB Incoterms · FOB clauseFOB (Free On Board) is one of the classic delivery clauses from the Incoterms catalogue of the International Chamber of Commerce (ICC). It governs when costs an
- Force Majeureforce majeure · force majeure clause · Force Majeure ClauseForce Majeure refers to force majeure – events outside the control of the contracting parties that make performance of the contract impossible or unreasonable.
- Forecast AccuracyPrognosegenauigkeit · Prognosegüte · Forecast QualityForecast Accuracy denotes the accuracy of demand and sales forecasts compared with the values actually realised. It is one of the key metrics for planning quali
- Forecast ErrorPrognosefehler · Forecast Error · Forecast BiasThe forecast error describes the deviation between forecast and actual demand, sales or consumption quantities. In industrial procurement, it is one of the key
- Forecast managementDemand Forecasting · Sales Forecast · Demand ForecastForecast management refers to the systematic planning, creation and continuous updating of demand and sales forecasts as the basis for operational and strategic
- ForfaitingForfaiting · Non-recourse purchase of receivables · Non-recourse receivables saleForfaiting refers to the sale of receivables from goods and services – typically export receivables – to a forfaiting company, whereby the seller is fully relea
- Forwards & SwapsForward Contract · Commodity Swap · Currency ForwardForwards and swaps are financial instruments that allow buyers to hedge commodity, energy and currency risks. They make it possible to bindingly fix prices or i
- Four-Eyes Principle (P2P)Four-Eyes-Principle · 4-Augen-Prinzip · 4EAIn the context of Purchase-to-Pay (P2P), the four-eyes principle is an organisational principle under which critical steps in the ordering and invoicing process
- 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 agreement annexContract annex · Annex to the framework agreement · Contract AnnexA framework agreement annex is a contractual supplementary document that specifies the detailed provisions of a framework agreement between buyer and supplier.
- Framework agreement maintenanceRahmenvertragspflege · Rahmenvertragsmanagement · framework agreement managementFramework agreement maintenance refers to the systematic administration, updating and further development of framework agreements over their entire term. It cov
- 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 Orderframework agreement · call-off order · contractThe framework order is a bindingly agreed supply contract from which multiple call-off orders are released over a longer period. It gives buyers price stability
- 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
- Free-Text Purchase OrderFreitextposition · Free-Text Purchase Order · free text orderA free-text purchase order is an order that the requester enters directly as free-form text in the procurement system, without a predefined catalogue, contract
- Freeze FenceFrozen Fence · Frozen Zone · Change FreezeFreeze Fence refers to a defined time-based or thematic lock with which changes to orders, bills of materials, schedules or material requirements are frozen for
- Freight AuditFreight Audit & Payment · Freight audit · Freight invoice auditFreight audit refers to the systematic checking of freight and logistics invoices for calculation errors, incorrect tariffs, duplicate billing and surcharges no
- Freight cost breakdownFreight Cost Breakdown · Breakdown of Freight Costs · Transport Cost BreakdownThe freight cost breakdown is the systematic itemisation of the transport and logistics costs of a procurement transaction into their individual components. It
- Freight cost managementTransportkostenmanagement · Freight Cost Management · LogistikkostenmanagementFreight cost management encompasses the structured steering of all costs incurred in the transport of goods between suppliers, production sites and customers. T
- Freight surchargefreight cost surcharge · transport surcharge · Fuel SurchargeThe freight surcharge is a mark-up on the net goods value or on the pure transport cost base through which suppliers pass increased or fluctuating transport cos
- Freight SurchargeFrachtzuschlag · Fuel Surcharge · TransportzuschlagThe freight surcharge is a surcharge on the product price intended to pass on specific or flat-rate transport costs to the customer. It is widespread in industr
- FSC/PEFC CertificateFSC · PEFC · Chain of CustodyFSC and PEFC certificates demonstrate that wood and paper products originate from demonstrably responsibly managed forests. For technical buyers, they are a cen
- Functional cost accountingfunctional cost accounting · funktionsbezogene Kostenrechnung · FunktionserfolgsrechnungFunctional cost accounting is a form of cost accounting that assigns costs not by cost centre or cost object but by operational functions such as procurement, m
- Functional specificationrequirements specification · functional specification · technical specification documentThe functional specification is a detailed, binding description of the functional and technical requirements for a product, plant or service. In industrial proc
G
- Gage R&RGRR · Gage Repeatability and Reproducibility · measurement system analysisGage R&R (Gage Repeatability and Reproducibility) is an established method of measurement system analysis used to determine how much of the variation in a measu
- 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 Location Number (GLN)GLN · GS1 Location Number · Location numberThe Global Location Number (GLN) is an internationally standardised, unique identification key for legal entities, physical locations and functional departments
- 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
- Golden RecordGolden Data Record · Single Source of Truth · Master RecordThe Golden Record denotes the unified master record of an object such as a material, supplier or customer that meets the highest quality standards. In procureme
- Goods receiptGoods Receipt · Goods Acceptance · Goods InwardGoods receipt refers to the physical and accounting takeover of goods and materials by the receiving company. It links logistics with procurement, quality assur
- Goods Receipt Lead TimeWareneingangsleadtime · Inbound Lead Time · WareneingangsdauerGoods receipt lead time describes the period from the physical arrival of a delivery at the company until the material is fully available in stock. It covers al
- Goods Receipt with Quality InspectionIncoming Inspection · Goods Receipt Inspection · Goods Receipt with Quality InspectionGoods receipt with quality inspection refers to the process in which incoming goods and parts are not only recorded in terms of quantity and identity but are al
- Goods Received Note (GRN)Goods Received Note · GRN · WareneingangsscheinThe Goods Received Note (GRN) documents the type, quantity and condition of all deliveries accepted at goods receipt. It forms the interface between logistics,
- 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
- Governing LawChoice of Law · Rechtswahlklausel · Anwendbares RechtGoverning Law refers to the choice of law agreed in the contract, i.e. the determination of which national law applies to the contractual relationship in the ev
- GR/IR ClearingGoods Receipt / Invoice Receipt Clearing · GR/IR reconciliation · GR/IR accountGR/IR clearing refers to the reconciliation and settlement control between goods receipt (GR) and invoice receipt (IR) within inventory and accounts payable acc
- GRI StandardsGlobal Reporting Initiative · GRI Standard · GRI reportingThe GRI Standards are the most widely used standard worldwide for reporting on a company's economic, environmental and social impacts. Developed and maintained
- Guided Buying RulesGuided Buying · Guided Procurement · Buy Channel GuidanceGuided Buying rules are systematic requirements that steer buyers and requisitioners within procurement processes towards defined channels, suppliers and terms.
H
- HedgingHedging · Risk Hedging · HedgeHedging refers to the protection against existing or future risks through targeted offsetting positions, typically relating to currencies, commodities or intere
- HS ClassificationHS-Code · Harmonized System · Harmonized Commodity Description and Coding SystemHS Classification refers to the classification of goods under the Harmonized System, the internationally uniform six-digit classification system for foreign tra
I
- IBAN verificationIBAN validation · IBAN check · International Bank Account NumberIBAN verification is the systematic check of international bank account numbers for formal correctness and plausibility before a payment is executed. In B2B pro
- 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
- Incoming goods inspection with AQL samplingAQL inspection · Acceptable Quality Limit · sampling inspectionIncoming goods inspection using an AQL sample is a standardised procedure in which, instead of complete delivery quantities, only a defined portion is inspected
- Incoming InspectionWareneingangskontrolle · Eingangsprüfung · Incoming InspectionIncoming inspection is the systematic check of delivered goods and services directly upon acceptance at the site. It ensures that the quantity, identity, qualit
- Incoming Inspection Planincoming inspection plan · goods receipt inspection plan · goods inspection planThe incoming inspection plan bindingly specifies which characteristics of supplied goods are inspected, with which inspection methods and to what extent. It is
- Incoming QualityWareneingangsqualität · Anlieferungsqualität · Incoming QualityIncoming quality refers to the quality of goods and components at the moment they arrive at procurement or in production. It encompasses technical conformity, c
- IncotermsIncoterms · Incoterms 2020 · International Commercial TermsIncoterms are the terms issued by the International Chamber of Commerce (ICC) governing delivery obligations, cost transfer and risk transfer in international t
- Incoterms CFRCFR · Cost and Freight · CFR Incoterms 2020Incoterms CFR (Cost and Freight) is one of eleven delivery terms of the International Chamber of Commerce (ICC) and governs who bears transport costs and risk i
- Incoterms CIFCost, Insurance and Freight · CIF Incoterms 2020 · CIF clauseCIF (Cost, Insurance and Freight) is one of the classic Incoterms for transport by sea and inland waterways. When buying 'CIF port of destination', the seller b
- Incoterms CIPCarriage and Insurance Paid to · CIP Incoterm · CIP clauseIncoterms CIP (Carriage and Insurance Paid to) is a delivery term of the International Chamber of Commerce under which the seller bears transport and insurance
- Incoterms CPTCPT · Carriage Paid To · Incoterms 2020 CPTCPT (Carriage Paid To) is one of the eleven Incoterms® rules of the International Chamber of Commerce (ICC) and governs who bears transport costs and the point
- Incoterms DAPDelivered at Place · DAP Incoterms 2020 · delivered named placeDAP (Delivered at Place) is an Incoterms rule under which the seller transports the goods to the agreed place of destination and makes them available there for
- Incoterms DDPDDP · Delivered Duty Paid · Incoterms 2020 DDPDDP (Delivered Duty Paid) is a delivery term under the Incoterms under which the seller delivers the goods to the agreed destination and bears transport, export
- Incoterms DPUDPU · Delivered at Place Unloaded · Incoterms 2020 DPUIncoterms DPU (Delivered at Place Unloaded) is a delivery term of the International Chamber of Commerce (ICC) under which the seller transports the goods to the
- Incoterms EXWEx Works · EXW · ex worksIncoterms EXW (Ex Works) is one of the eleven delivery terms of the International Chamber of Commerce (ICC) and describes the handover of goods at the seller's
- Incoterms FASFAS · Free Alongside Ship · Incoterms 2020 FASIncoterms FAS (Free Alongside Ship) is a delivery term from the International Chamber of Commerce's Incoterms® rules under which the seller delivers the goods a
- Incoterms FCAFCA · Free Carrier · Incoterm FCAIncoterms FCA (Free Carrier) is a delivery term of the International Chamber of Commerce (ICC) under which the seller hands over the goods at the named place of
- Incoterms FOBFOB · Free On Board · FOB Incoterms 2020Incoterms FOB (Free On Board) is an international delivery term under which the seller loads the goods onto the vessel nominated by the buyer, and it is there t
- Incoterms transfer of riskGefahrübergang Incoterms · Transfer of risk · Risk transfer pointThe Incoterms transfer of risk describes the point in time at which the risk of loss of or damage to the goods passes from the seller to the buyer. It is a cent
- IndemnityHold Harmless · Freistellung · Indemnity ClauseIndemnity refers to the contractual obligation of one contracting party to hold the other harmless from certain damages, losses or third-party claims. In indust
- 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
- Initial Sample Inspection Report (ISIR)Erstmusterprüfbericht · EMPB · Initial Sample ReportThe Initial Sample Inspection Report (ISIR) is the documented evidence of an initial sample inspection, with which a supplier demonstrates that a newly develope
- Initial Sampling (EMPB)EMPB · First article inspection · PPAPInitial sampling, frequently referred to internationally as EMPB (Enhanced Modified Product Benchmark), first article sampling or First Article Inspection, is t
- 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 Incentive ModelsInnovation Incentives · Supplier Innovation Program · Innovation BonusInnovation incentive models are contractual and organisational mechanisms that procurement organisations use to motivate suppliers to develop new products, proc
- 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
- Inspection instructionPrüfsvorschrift · Inspection Instruction · Inspection Work InstructionThe inspection instruction is a documented working document that specifies how, with what and to what extent a product or process is inspected. It is a central
- Intellectual Property Rights (IPR)Intellectual property rights · Intellectual property · IPRIntellectual Property Rights (IPR) comprise the legal protection rights over intellectual property such as patents, trademarks, designs, copyrights and trade se
- Interim paymentsAbschlagsrechnung · Teilzahlung · Milestone PaymentAn interim payment is a part payment on a delivery or contract for work not yet fully rendered, usually made after measurable project progress or agreed milesto
- Internal Transfer PricesTransferpreise · Transfer Prices · interne LeistungsverrechnungInternal transfer prices are the prices at which services and goods are charged between group-affiliated entities. They steer the economic collaboration between
- IntrastatIntrastat declaration · Intra-Stat · intra-Community trade statisticsIntrastat is the statistical reporting procedure of the European Union for recording the movement of goods between member states. For industrial companies, the
- Intrastat returnIntrastat · Intrahandel return · INTRA returnThe Intrastat return is the statistical declaration of goods arrivals and goods dispatches between member states of the European Union. It is not used to levy d
- Inventory AnalysisInventory Analysis · Bestandsbewertung · LagerbestandsanalyseInventory analysis is the systematic recording, evaluation and interpretation of all stock held by a company. It shows which materials exist in which quantities
- Inventory CoverageLagerreichweite · Inventory Coverage · Inventory RangeInventory coverage indicates how many days or weeks a company can cover its demand for materials and goods solely from existing warehouse stock. It is one of th
- Inventory Health DashboardInventory Dashboard · Inventory Dashboard · Inventory KPI DashboardAn Inventory Health Dashboard is a visual evaluation that presents the quality and health of inventory in real time or at defined intervals. It consolidates KPI
- Inventory Issue AnalysisLagerabgangsstatistik · Inventory issue analysis · MaterialabgangsanalyseInventory issue analysis is the systematic evaluation of all goods withdrawals from the warehouse over a defined period. It shows which materials are consumed i
- Inventory KPIsLager-KPIs · Bestandskennzahlen · Inventory KPIsInventory KPIs are quantitative measures with which companies evaluate and control the performance of their inventory management. They make inventory levels, tu
- Inventory ManagementBestandsführung (German) · Inventory Management · Stock Level ManagementInventory management refers to the systematic recording, administration and control of all stock levels of a company – from raw materials via semi-finished and
- Inventory ManagementInventory Management · Stock Management · Stock Level ManagementInventory management refers to the planning-based, controlling and monitoring management of stock levels along the entire value chain. In industrial procurement
- Inventory methodsstocktaking procedures · inventory types · perpetual inventoryInventory methods (Inventurverfahren) are the methods and processes by which companies determine the actual stock of their assets, in particular their goods and
- Inventory OptimisationInventory Optimization · Lageroptimierung · BestandsmanagementInventory optimisation refers to the systematic control of stock levels with the aim of ensuring product availability while minimising tied-up capital, inventor
- Inventory Turnsstock turnover rate · turnover rate · Inventory TurnoverInventory Turns (stock turnover) indicate how often an inventory is completely turned over within a period – usually one year. The metric links inventory levels
- Inventory VarianceBestandsdifferenz · Inventurabweichung · LagerdifferenzThe inventory variance describes the deviation between the recorded book stock and the physically counted actual stock of a warehouse item. It is a key indicato
- Invoice Approval WorkflowInvoice approval process · Invoice Approval Workflow · Accounts payable invoice workflowThe invoice approval workflow describes the structured process by which incoming supplier invoices are checked, posted and approved by authorised parties within
- Invoice AutomationInvoice automation · Accounts Payable Automation · electronic invoice processingInvoice Automation refers to the largely automated capture, review and posting of supplier invoices in digital systems. For procurement and finance departments
- Invoice automation rateRechnungsautomatisierungsgrad · Degree of invoice automation · Touchless invoice processingThe invoice automation rate describes the proportion of incoming supplier invoices that are processed, checked and released for payment without manual intervent
- Invoice clearingInvoice Clearing · Invoice Matching · Invoice VerificationInvoice clearing refers to the systematic checking, matching and resolution of incoming invoices against purchase order and delivery evidence before release for
- Invoice Error RateInvoice Error Rate · Rechnungsfehlerquote · Fehlerquote EingangsrechnungThe invoice error rate describes the proportion of faulty invoices relative to the total number of incoming invoices received. It is a key process indicator for
- 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
- IP transferIP-Transfer · Rechteübertragung · IPR-ÜbertragungIP transfer refers to the contractual transfer of intellectual property rights, for example in designs, software, formulations or manufacturing know-how, betwee
- Ishikawa DiagramFishbone Diagram · Cause-and-Effect Diagram · Ishikawa DiagramThe Ishikawa diagram, also known as the fishbone diagram or cause-and-effect diagram, is a visual method for the structured root cause analysis of problems. In
- ISO 9001ISO 9001:2015 · QMS standard · quality management standardISO 9001 is the globally established standard for quality management systems (QMS) and defines requirements for processes, responsibilities and continuous impro
J
- Joint Business Plan (JBP)JBP · Joint Business Planning · Joint Action PlanThe Joint Business Plan (JBP) is a binding business and development plan for the collaboration, developed jointly by buyer and supplier. It defines objectives,
- Joint Development Manufacturing (JDM)JDM · Joint Development · Joint ManufacturingJoint Development Manufacturing (JDM) refers to a close development partnership in which the customer and the manufacturing partner jointly develop a product or
- Jurisdiction ClauseGerichtsstandklausel · Gerichtsstandsvereinbarung · Forum ClauseThe Jurisdiction Clause (agreement on the place of jurisdiction) contractually determines which court has territorial and subject-matter jurisdiction over dispu
- Just-in-TimeJiT · JIT procurement · Just in TimeJust-in-Time (JiT) is a procurement and production strategy in which materials are delivered exactly when they are actually needed. The aim is to minimise inven
K
- KanbanKanban system · eKanban · two-bin systemKanban is a demand-driven control principle in which material replenishment is only triggered once actual consumption has taken place. In industrial procurement
- Kanban systemKanban · e-Kanban · Kanban cardThe Kanban system is a method of pull-controlled material scheduling in which consumption automatically triggers replenishment. Instead of central demand planni
- Kraljic MatrixKraljic Portfolio · Purchasing Portfolio · Portfolio Analysis ProcurementThe Kraljic Matrix is a portfolio approach for segmenting procured goods along the dimensions of business impact and supply risk. Popularised in the early 1980s
- KYC in ProcurementKnow Your Customer · KYC process · Business Partner VerificationKYC in procurement stands for "Know Your Customer" or, in a procurement context, for the structured vetting and identification of business partners along the su
L
- Layered Process Audit (LPA)LPA · Layered Audit · Process ConfirmationThe Layered Process Audit (LPA) is a multi-level checking method in which process conformity is verified at regular intervals and at various hierarchical levels
- Lead Timelead time · replenishment time · throughput timeLead time refers to the time that elapses from the placement of an order until the goods or service are available to the buyer. In industrial procurement it is
- 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
- Letter of CreditAkkreditiv · L/C · LoCA letter of credit (LoC), known in German as Akkreditiv, is an abstract payment undertaking by a bank that allows the exporter to ensure he is paid only against
- Letter of Credit BusinessLetter of Credit · L/C · Documentary CreditLetter of credit business is a payment and safeguarding instrument in foreign trade whereby a bank, on behalf of the buyer, undertakes to pay the seller provide
- Life Cycle Assessment (LCA)Ökobilanz · LCA · Product Environmental FootprintLife Cycle Assessment (LCA), in German 'Ökobilanz', is a standardised method for assessing the environmental impacts of a product or process across its entire l
- Life Cycle CostingLife Cycle Costing · LCC · life cycle cost analysisLife cycle costing (LCC) captures all costs of a product, plant or service over its entire life cycle – from procurement through operation and maintenance to di
- Limitation of LiabilityHaftungsbeschränkung · Haftungsobergrenze · liability limitationLimitation of liability refers to contractual provisions that restrict a contracting party's liability risk – typically that of the supplier or service provider
- Limitation of LiabilityLiability Cap · Limitation of Liability · Liability LimitationLimitation of Liability refers to the contractual limitation of liability between customer and supplier, usually through caps, exclusion clauses and liability t
- Line StopLine Stillstand · Line Down · Line StoppageA Line Stop refers to the unplanned standstill of a production line, frequently triggered by missing parts, quality defects in delivered goods, or failures of p
- Liquidated DamagesLD · Liquidated damages clause · contractual penaltyLiquidated damages (LDs) are damages amounts agreed in advance by contract that a supplier pays to the customer upon specific breaches of contract – most common
- Load carrier managementLoad Carrier Management · LCM · Reusable Packaging ManagementLoad carrier management refers to the systematic planning, control and monitoring of transport and packaging equipment such as pallets, mesh boxes, containers a
- 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
- Logistics CostsTransportkosten · Lieferkosten · Logistics CostsLogistics costs cover all costs incurred in connection with the physical flow of goods – from transport and warehousing to packaging, handling and inventory fin
- Long-Term Supplier's Declaration (LTSD)LLE · Langzeit-Lieferantenerklärung · long-term supplier's declarationThe long-term supplier's declaration (LTSD) is a customs declaration by which a supplier confirms that the delivered goods, with a preference document, are rega
- Lot NumberChargennummer · Chargen-ID · Lot NumberThe lot number is a unique identifier for a produced or procured quantity of identical units manufactured under identical conditions. It makes it possible to tr
- Lot size optimisationLot size planning · Order quantity optimisation · Optimal lot sizeLot size optimisation refers to the systematic determination of those procurement and production quantities at which the sum of set-up, ordering and storage cos
- Lot sizingLot size determination · Lot size planning · Lot SizingLot sizing refers to the determination of the quantity in which materials, components or products are ordered, manufactured or delivered together. It links proc
- Lot splittingLos-Splitting · Losaufspaltung · Lot SplittingLot splitting describes the deliberate breakdown of a total quantity into several smaller manufacturing or procurement lots. It is a central instrument of produ
- 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
- Mandatory fieldsMandatory details · Mandatory field · required fieldsMandatory fields are input fields in forms, master data and systems that must be completed, without which a transaction cannot be processed or approved. In indu
- Manufacturer Part Number (MPN)MPN · Manufacturer Part Number · Hersteller-ArtikelnummerThe Manufacturer Part Number (MPN) is the unique item identifier assigned by the manufacturer for a specific product or component variant. In technical procurem
- 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
- Master Data GovernanceMDG · Master Data Governance · Master data managementMaster Data Governance refers to the company-wide organisation, control and quality assurance of master data, i.e. the central base data on materials, suppliers
- Master Data GovernanceMaster Data Governance · Master data management · Data quality managementMaster data governance refers to the sum of policies, roles, processes and controls with which companies ensure the quality, consistency and use of their master
- Master Data ManagementMaster Data Management · MDM · master data maintenanceMaster data management refers to the systematic recording, maintenance and quality assurance of central reference data such as material, supplier and part maste
- Master Data ProcessMaster Data Process · Stammdatenpflege · StammdatenmanagementThe master data process describes the structured capture, maintenance, release and updating of master data within the company – in particular material, supplier
- Master Production Schedule (MPS)Main Production Plan · Primary Requirements Plan · Master ScheduleThe Master Production Schedule (MPS) is the medium-term production plan that specifies which finished products are to be manufactured in which quantities and in
- Master Service Agreement (MSA)MSA · framework agreement · Master AgreementA Master Service Agreement (MSA) is a framework agreement that sets out the fundamental terms for a lasting business relationship between a customer and a contr
- Match & Merge RulesInvoice Matching · Three-Way Matching · Two-Way MatchingMatch & Merge rules are predefined allocation logics in procurement and accounts payable that automatically reconcile purchase orders, goods receipts and invoic
- Material Availability Checking (ATP)ATP · Available-to-Promise · Available to PromiseMaterial availability checking, internationally often referred to as Available-to-Promise (ATP), is a planning procedure used to check whether, and to what exte
- 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 ComplianceMaterial conformity · Substance Compliance · Chemical ComplianceMaterial compliance refers to ensuring that all materials and components used in the procurement and production process meet the applicable legal, normative and
- 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
- Material master attribute maintenanceMaterial master data maintenance · Material Master Data Management · Item maintenanceAttribute maintenance in the material master refers to the systematic maintenance and updating of the properties (attributes) of materials, components and servi
- Material number systemMaterial number · Material identification · Material MasterA material number system is the systematic structuring and assignment of unique identification numbers for materials, components and goods within a company. It
- Material releaseMaterial release · B-release · Material approvalMaterial release is the formal process by which a company determines that a supplier's material or component is approved for series production or productive use
- Material requirements planningPlanning logistics · Material requirements planning · MRPMaterial requirements planning refers to the systematic determination of material requirements and their timely coverage through purchase orders, manufacturing
- Material Requirements Planning (MRP)MRP · Material Requirements Planning · Material requirements planningMaterial Requirements Planning (MRP) is the demand-driven planning and provisioning of materials, components and pre-products based on bills of materials, stock
- Material Substitution (ESG)Werkstoffsubstitution · Material substitution · Substitution StrategyIn an ESG context, material substitution refers to the planned replacement of materials and components with alternatives that have a better sustainability profi
- Materials ManagementMaterial Management · Materialdisposition · Material LogisticsMaterials management refers to the entirety of all processes for planning, procuring, storing, supplying and controlling materials within a company. It links re
- Maverick BuyingMaverick Purchasing · Shadow Purchasing · Shadow SpendMaverick buying refers to the purchase of goods and services outside established procurement policies, framework agreements or approved sources of supply. The t
- 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
- Measuring equipment managementMeasuring equipment management · Test Equipment Management · Calibration managementMeasuring equipment management refers to the systematic planning, monitoring and documentation of all measuring and test equipment within the company. The aim i
- Milk RunMilkrun · Collection route · Round-route logisticsMilk run refers to a logistics supply concept in which a transport vehicle travels a fixed route schedule calling at several suppliers or stations, collecting o
- Min-Max ControlMin-Max Planning · Reorder Point Method · Order Point SystemMin-max control is a classic method of planning-oriented inventory management in which items are controlled via a minimum and a maximum stock level. If the stoc
- Minimum order quantity (MOQ)MOQ · Minimum Order Quantity · minimum acceptance quantityThe minimum order quantity (MOQ) is the smallest quantity or order value a supplier will accept per order, line item or article. It is a central negotiation poi
- Minimum Order Quantity (MOQ)MOQ · minimum order quantity · minimum purchase quantityThe Minimum Order Quantity (MOQ) is the minimum order quantity that a supplier requires per order, line item or article. It typically arises from set-up costs,
- Minimum stock levelSafety Stock · Reorder Point · Minimum Stock LevelThe minimum stock level is the lower stock limit of an item in the warehouse, below which replenishment is triggered immediately. It serves as a safety buffer t
- Mobile Approval (P2P)Mobile Approval · Mobile Genehmigung · Mobile P2PMobile Approval (P2P) refers to the approval of purchase requisitions and purchase orders via mobile devices within the purchase-to-pay process. It replaces pap
- 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.
- Most-Favoured-Customer ClauseMFC clause · best customer clause · terms privilege clauseThe most-favoured-customer clause (MFC clause) is a contractual commitment by which a supplier guarantees not to grant any other customer more favourable terms
- Mould-making procurementWerkzeugbau-Beschaffung · Tooling Purchasing · WerkzeugeinkaufMould-making procurement covers the procurement processes surrounding the design, manufacture, purchase and upkeep of tools such as injection moulds, die-castin
- 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
- MSA (Measurement System Analysis)Measurement System Analysis · Messsystemanalyse · GRR-AnalyseMSA stands for Measurement System Analysis, in German Messsystemanalyse. It denotes the systematic examination of measuring and inspection systems with regard t
- Multiple SourcingMulti Sourcing · Multiple Procurement · Multi-Source ProcurementMultiple sourcing describes a procurement strategy in which a company deliberately uses several suppliers in parallel for a good or service. The aim is to reduc
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 managementNegotiation Management · Procurement Negotiation · Strategic NegotiationNegotiation management refers to the structured planning, execution and follow-up of negotiations between procurement and suppliers. It combines substantive pre
- Negotiation minutesminutes of outcomes · final minutes · verbatim recordNegotiation minutes are the structured written record of outcomes, agreements and open points from a procurement negotiation. They secure the negotiation outcom
- 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
- Netnet 30 · payment term · payment termsIn procurement, net refers to the agreement to pay an invoice net – i.e. without any deduction of early payment discount – within a defined period, typically ex
- NettingBilateral Netting · Multilateral Netting · Balance SettlementNetting refers to the mutual offsetting of receivables and payables between business partners, so that only the balance is paid. In industrial procurement, this
- 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
- No-Touch OrderTouchless Order · Touchless PO · No-Touch Purchase OrderNo-Touch Order refers to an order process in which a purchase order is processed fully automatically from receipt to confirmation, without a buyer intervening m
- Non-Binding Offernon-binding offer · subject to contract · Indicative OfferThe Non-Binding Offer is a non-binding offer that states price, quantity and delivery terms without legal effect. In industrial procurement, it serves primarily
- Non-Disclosure Agreement (NDA)Geheimhaltungsvereinbarung · Vertraulichkeitsvereinbarung · GeheimhaltungserklärungA Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a contract that governs the handling of confidential information between busines
- 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
- Non-Solicitation ClausePoaching ban · Non-Solicitation Agreement · Non-Solicitation ClauseThe non-solicitation clause is a contractual provision that prohibits the contracting parties from poaching the other party's employees, customers or suppliers.
- Notice Periodnotice period · renewal period · termination thresholdThe notice period is the contractually agreed period between the termination of a contract and the point at which it takes effect. In industrial procurement, it
O
- Obsolescence managementObsolescence Management · EOL Management · Lifecycle ManagementObsolescence management refers to the systematic identification, assessment and control of components, materials and parts whose availability is ending or at ri
- Obsolete stockDead Stock · Totbestand · ObsoleszenzObsolete stock refers to inventories of materials, components or finished goods for which no foreseeable demand exists any more – for example because products h
- Ocean Freight Cost ComponentsOcean Freight Cost Components · Ocean Freight Surcharges · Demurrage & DetentionOcean freight cost components are the individual cost elements that make up the transport of goods by sea – from base freight through surcharges to port and doc
- OCIOpen Catalog Interface · SAP OCI · OCI standardOCI stands for Open Catalog Interface, an interface defined by SAP for exchanging catalogue data between e-procurement systems and supplier catalogues. It enabl
- 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
- On-Time Delivery (OTD)OTD · delivery performance · schedule adherenceOn-Time Delivery (OTD) refers to a supplier's ability to meet agreed delivery dates and is usually measured as the percentage of orders delivered on time. For b
- On-Time In Full (OTIF)OTIF · On Time In Full · OTIF rateOn-Time In Full (OTIF) is a metric that measures how many deliveries arrive complete and on time at the customer. It thus combines two previously separate dimen
- On-Time Payment RateOTPR · punctual payment ratio · payment reliabilityThe On-Time Payment Rate (OTPR) measures the proportion of supplier invoices paid on time by the agreed payment due date. It is a key financial and supplier met
- 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
- Optimal Order QuantityOptimal order quantity · EOQ · Andler formulaThe optimal order quantity refers to the order or batch size at which the sum of procurement, ordering and inventory holding costs over the period under review
- Optimising delivery schedule releasesdelivery schedule releases · release planning · delivery scheduleOptimising delivery schedule releases means designing the planning and triggering of part deliveries on the basis of framework agreements and release schedules
- Order confirmation obligationAuftragsbestätigungspflicht · AB-Pflicht · Order Confirmation ObligationThe order confirmation obligation refers to the supplier's duty to confirm or reject a received order in writing or electronically within a defined deadline. It
- Order fulfilment processBeschaffungsabwicklung · procurement process · order-to-payThe order fulfilment process describes the entire operational execution of a procurement project, starting with demand notification through purchase order, deli
- Order HistoryOrder History · Bestellchronik · EinkaufshistorieThe order history comprises the documented sequence of all orders placed by a company over a defined period. It forms the central memory of procurement and prov
- Order ManagementOrder Management · Bestellwesen · Purchase Order ManagementOrder management encompasses the planning, execution, monitoring, and follow-up of purchase orders between companies and suppliers. It forms the operational bac
- Order PrioritisationOrder Prioritization · Order Ranking · Purchase Order PrioritisationOrder prioritisation refers to the systematic establishment of a ranking for customer, production and procurement orders according to business criteria such as
- Order processingOrder Processing · Order Fulfillment · Auftragsabwicklung und -steuerungOrder processing encompasses all steps from order receipt through scheduling, material planning and production to shipping, invoicing and after-sales support. I
- Order rate per catalogueKatalogquote · Katalog-Order-Rate · Catalog Order RatioThe order rate per catalogue is a procurement KPI that expresses the ratio of orders processed via an electronic catalogue to the total number of orders for an
- Order-to-CashO2C · Order to Cash · order processing processOrder-to-Cash (O2C) refers to the end-to-end process chain that begins with order acceptance and ends with receipt of payment. In DACH industry, O2C connects sa
- Ordering Costsprocurement fixed costs · Order Processing Costs · order fulfilment costsOrdering costs are the expenses incurred in connection with triggering and processing a single order – regardless of the value of the goods ordered. They includ
- Ordering Policyprocurement principles · planning policy · Ordering PolicyThe ordering policy comprises all defined rules, principles and procedures by which a company translates requirements into purchase orders. It answers key quest
- Origin preferencecustoms preference · preferential origin · origin preferenceOrigin preference refers to the benefit granted to a good upon crossing the border because it has preferential origin in an agreement partner country and that o
- 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
- Package sizesPackungsgröße · Packgebinde · Packaging UnitPackage sizes (Gebindegrößen) denote the quantity and division in which a product is packed, ordered and delivered – for example units per carton, cartons per p
- Packaging Act (VerpackG)VerpackG · Verpackungsgesetz Deutschland · SystembeteiligungspflichtThe Packaging Act (VerpackG) regulates the placing on the market, take-back and recovery of packaging in Germany and obliges manufacturers, distributors and imp
- Packaging managementPackaging Management · Packaging Logistics · Packaging SourcingPackaging management refers to the systematic planning, procurement, steering and optimisation of packaging along the entire value chain. It covers product pack
- Packaging recyclabilityRecyclability · Design for Recycling · Packaging recyclabilityPackaging recyclability describes the extent to which a packaging can be materially recovered after use and returned to existing recycling systems. For industri
- Packaging reductionVerpackungsoptimierung · Packaging Reduction · VerpackungsminimierungPackaging reduction refers to the targeted reduction of packaging material, packaging volume and packaging-related process costs across the entire supply chain.
- Packaging regulationsPackaging regulations · Verpackungsrichtlinien · Packaging compliancePackaging regulations encompass all legal, normative and contractual requirements for the packaging, labelling and take-back of products along the supply chain.
- Packing ListPackliste · Pack List · Packliste der SendungThe packing list is a commercial and shipping document that itemises the contents of a consignment in detail. It complements the invoice and delivery note and e
- PalletisingPallet building · Palletizing · Pallet formationPalletising refers to the systematic arrangement and securing of goods on pallets to optimise transport, storage and handling. For buyers and supply chain manag
- Parameter maintenance (MRP)MRP parameter maintenance · planning parameter maintenance · material master data maintenanceParameter maintenance (MRP) refers to the ongoing checking and updating of planning parameters in materials management and ERP systems, in particular the MRP pa
- Parent Company GuaranteePCG · Group Guarantee · Parent GuaranteeA Parent Company Guarantee (PCG) is a contractual suretyship or guarantee declaration by a parent company for the liabilities or performance obligations of its
- Partial Delivery/Balance QuantityPartial delivery · Balance quantity · Open quantityA partial delivery occurs when a supplier delivers only part of the ordered quantity or items; the outstanding quantity is referred to as the balance quantity.
- Parts catalogueMaterialkatalog · Artikelkatalog · ErsatzteilkatalogThe parts catalogue is a structured directory of components, standard parts and series parts from which purchasers and designers can select and order products.
- Parts per Million (PPM)PPM · Defects per Million · Defect rate in PPMParts per Million (PPM) describes how many defective units statistically occur per one million delivered parts and is regarded as the standard key figure for de
- Parts Shortage ManagementShortage Management · Material Availability Management · Parts Shortage ManagementParts shortage management refers to the systematic identification, analysis and resolution of missing materials, components or parts in production and assembly.
- Payment RunPayment Run · Payment Run Process · Creditors Payment RunA payment run refers to the bundled, scheduled process of executing payments to suppliers, typically in fixed cycles within a company's finance or procurement f
- Payment ScheduleZahlungsplanung · Payment Schedule · LiquiditätsplanA payment schedule is the structured scheduling of all incoming and outgoing payments over a defined planning period. In industrial procurement, it determines w
- Payment Term AdherencePayment Term Compliance · Payment Terms Compliance · Term AdherencePayment Term Adherence describes the extent to which the procurement organisation and suppliers actually comply with the contractually agreed payment terms. The
- Payment Termspayment period · early payment discount · payment termsPayment terms govern when and in what form a buyer is to settle the supplier's invoice. They cover the payment period, early payment discounts, payment method a
- Payment TermsTerms of payment · payment deadline · payment conditionsPayment terms are the contractually agreed terms of payment between buyer and supplier, in particular the payment deadline, payment method and any discounts suc
- Payment Terms OptimisationDays Payable Outstanding · DPO · Supplier Payment TermsPayment terms optimisation refers to the systematic design and extension of payment terms towards suppliers without jeopardising their liquidity and delivery re
- Penalty ClauseContractual Penalty · Liquidated Damages · Penalty ClauseThe penalty clause is a contractual agreement under which a supplier pays a contractual penalty to the customer in the event of a failure to meet agreed perform
- Performance BondPerformance Guarantee · Contract Bond · Contract Performance SuretyA Performance Bond is a guarantee or surety through which a contractor secures due contractual performance towards the contracting party. In industrial procurem
- Pilot project with suppliersLieferanten-Pilot · Pilotphase Lieferant · Supplier Pilot ProjectA pilot project with suppliers is a limited practical test in terms of time and scope, in which a supplier is tested under real conditions before being fully on
- Pilot RunPilot series · Trial run · Pre-Series RunThe pilot run is an initial series trial run in which a product is manufactured under real series production conditions before full-scale production release is
- Plan-Actual Stock ComparisonTarget-Actual Stock Comparison · Stock Reconciliation · Plan-Actual Stock ReconciliationThe plan-actual stock comparison is the systematic reconciliation of planned stock levels with actually available inventory as at a key date. It is one of the c
- Planning Time WindowPlanungshorizont · planning horizon · planning time fenceThe planning time window refers to the period for which a company plans its demand, inventory and procurement measures in advance. In practice, it ranges from s
- Plant and service orderPlant Order · Service Order · Service OrderThe plant and service order is an order type for the procurement of capital goods (plant, machinery, tools) as well as services such as installation, maintenanc
- PO Cycle TimePurchase Order Cycle Time · Order Processing Time · PO Processing TimeThe PO Cycle Time describes the period from the raising of a purchase order (order) to its full approval or confirmation by the supplier. It is one of the key m
- PO OrderPurchase Order · Order · Purchase Order DocumentThe PO Order (Purchase Order, i.e. order or purchase requisition order) is the central operational document in the procurement process of an industrial company.
- PO PolicyPurchase Order Policy · Bestellrichtlinie · BestellpolicyThe PO Policy (Purchase Order Policy) is an internal set of company rules that bindingly defines when, how and under what conditions Purchase Orders are created
- PO-FlipPurchase Order Flip · Invoice Flip · PO-based invoicingPO-Flip refers to the system-supported conversion of a purchase order (PO) into an invoice, without the supplier having to create their own invoice document. Th
- Policy Compliance in ProcurementProcurement Compliance · Supplier Compliance · Purchasing CompliancePolicy compliance in procurement refers to the systematic assurance that all procurement processes, contract awards and supplier relationships comply with a com
- 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
- PPAPProduction Part Approval Process · PSW · Part Submission WarrantPPAP (Production Part Approval Process) is a standardised release process for volume production parts that originally comes from the automotive industry and is
- PPWRPackaging and Packaging Waste Regulation · EU Packaging Regulation · EU Packaging Regulation (PPWR)PPWR stands for Packaging and Packaging Waste Regulation, the EU Packaging Regulation (Regulation (EU) 2025/40), which governs packaging and packaging waste uni
- PPWR Declaration of ConformityPPWR DoC · Declaration of Conformity PPWR · Declaration of Conformity Packaging RegulationThe PPWR Declaration of Conformity is the written declaration by an economic operator that a packaging or packaged good meets the requirements of the EU Packagi
- Pre-QualificationSupplier Pre-Qualification · Supplier pre-qualification · Advance qualificationPre-qualification refers to the systematic advance screening of potential suppliers and service providers before they are included in tender processes, framewor
- Preference calculationPräferenzkalkulierung · Präferenzermittlung · preferential origin calculationPreference calculation is the systematic determination and documentation of whether a good qualifies as an originating product under a preferential agreement an
- Preferred CarrierPreferred Carrier Agreement · Preferred Carrier List · Preferred Freight ForwarderPreferred Carrier refers to a transport service provider that a company has designated as its preferred partner for specific traffic routes, lanes or freight ty
- Preferred SupplierPreferred Vendor · preferred supplier status · bevorzugter LieferantA Preferred Supplier is a supplier that a company, following completed supplier qualification, awards orders to on a preferential basis and who is treated with
- Preferred Supplier PolicyPreferred Supplier Policy · Preferred Supplier List · PSLThe Preferred Supplier Policy is an internal rule defining the conditions under which a supplier is classified as a preferred source of supply and the privilege
- Preferred Supplier ProgramPreferred Supplier Programme · Preferred Supplier List · List of Preferred SuppliersA Preferred Supplier Program is a structured concept with which procurement organisations give vetted and high-performing suppliers preference for new awards an
- PrepaymentPrepayment · Advance Payment · Down PaymentPrepayment is a payment term under which the buyer pays the purchase price or a down payment before the supplier ships the goods or delivers the service. It shi
- Prequalification tenderTeilnahmeverfahren · Teilnahmewettbewerb nach VgV · prequalificationThe prequalification tender is the first stage of a two-stage award procedure in which potential suppliers demonstrate their suitability before being admitted t
- Price adjustment clausePrice Adjustment Clause · Indexation Clause · Escalation ClauseThe price adjustment clause is a contractual agreement that specifies under which conditions, to what extent and by which procedure agreed prices can be adjuste
- Price adjustment clauseIndexklausel · Preisänderungsklausel · PreisgleitungsklauselThe price adjustment clause is a contractual provision that sets out under which conditions and according to which methodology agreed prices may change during t
- Price Adjustment ClausePreisgleitklausel · Preisanpassungsklausel · Price Adjustment ClauseThe price adjustment clause is a contractual provision governing the adjustment of agreed prices in response to changed cost situations. It is indispensable abo
- Price and Condition MaintenanceCondition maintenance · Price maintenance · Terms managementPrice and condition maintenance refers to the systematic recording, updating and management of all prices, price adjustment clauses and delivery conditions in 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 Deviation from Purchase OrderPrice Variance · Preisdifferenz Bestellung · BestellpreisabweichungThe price deviation from the purchase order denotes the difference between the price expected or agreed at the time of ordering and the price actually invoiced
- Price deviation workflowPrice deviation workflow · Preisdifferenz-Workflow · PreisabweichungsprozessThe price deviation workflow refers to the defined process by which companies systematically capture, assess and resolve price and cost differences between the
- Price deviation workflowPrice Deviation Workflow · Preistoleranzprüfung · PreisabweichungsprozessThe price deviation workflow is a defined review and approval process by which deviating prices between purchase order, delivery schedule and incoming invoice a
- Price Enquiry Fast-Track ProcessPreiseinholung Schnellverfahren · Quick Quote · Spot-PreisabfrageThe price enquiry fast-track process is a formalised but heavily abbreviated request procedure that enables buyers to obtain current market prices within hours
- Price escalation clausePrice adjustment clause · Sliding price clause · Price Escalation ClauseThe price escalation clause is a contractual agreement governing the conditions under which and the extent to which a price may be adjusted during the term of a
- Price Escalation ClauseGleitpreisklausel · Preisanpassungsklausel · IndexklauselThe price escalation clause is a contractual agreement governing the adjustment of an agreed price in line with the development of defined cost-driven factors.
- Price FormationPrice Formation · Pricing · Price FindingPrice formation refers to the overall process by which market prices for goods and services emerge – through supply and demand, cost structures, the competitive
- 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 IndexPrice Index · Procurement Price Index · Index ClauseThe price index is a statistical measure that maps the average development of prices for goods, services or baskets of goods over time. In industrial procuremen
- Price index linkageIndexation · Price adjustment clause · Escalation ClausePrice index linkage is a contractual agreement under which the price of a good or component automatically adjusts to the development of a defined price index. F
- Price IndexationIndex clause · Price adjustment clause · Price escalation clausePrice indexation refers to the contractual linking of purchase prices to objective reference values such as commodity exchange prices, consumer price indices or
- Price InquiryPrice Query · Price Inquiry RFQ-Light · Price InquiryThe price inquiry is an informal to semi-formal request to suppliers to obtain prices for specific materials or services. It is one of the most frequently used
- 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
- Price SheetPrice Sheet · Price List · Terms SheetThe price sheet is a structured document that clearly compiles prices and price-relevant terms for specific products or services. It serves as a basis for compa
- Process CapabilityProcess Capability · Cpk · CpProcess capability describes the ability of a manufacturing process to consistently and reproducibly meet defined tolerance limits over an extended period. It i
- Process costingActivity-Based Costing · ABC costing · process costingProcess costing is a cost and performance accounting method that allocates overheads to products, customers or functions on the basis of activities and process
- Process costsProzesskostenrechnung · Transaktionskosten · Process CostsProcess costs are the costs incurred in companies from carrying out recurring workflows – from the purchase requisition through the purchase order to invoice ve
- Process Optimisation in ProcurementPurchase Process Optimization · Beschaffungsoptimierung · Procurement Process ExcellenceProcess optimisation in procurement refers to the systematic analysis and improvement of all workflows along the procurement process – from demand planning via
- Procure-to-Pay (P2P)Purchase-to-Pay · P2P · Procure to PayProcure-to-Pay (P2P) describes the end-to-end process from requirement identification through ordering to invoice processing and payment. The term is often used
- Procurement Approval Workflowapproval workflow · procurement approval process · purchase order approval processThe procurement approval workflow refers to the structured approval process that is completed between a requisition and the approval of a purchase order or cont
- Procurement budgetBeschaffungsbudget · Procurement Budget · EinkaufsetatThe procurement budget is the planned financial framework for all procurement expenditure of a company within a defined period, typically a financial year. It c
- 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 controllingProcurement Controlling · Purchasing Controlling · Spend ManagementProcurement controlling refers to the systematic planning, steering and monitoring of all procurement activities based on key performance indicators, budgets an
- Procurement ControllingEinkaufscontrolling · Purchasing Controlling · Procurement ControllingProcurement controlling refers to the systematic planning, steering and monitoring of all procurement activities of a company based on defined key figures and p
- Procurement ControllingBeschaffungscontrolling · Purchasing Controlling · Procurement ControllingProcurement controlling refers to the systematic planning, steering and monitoring of all procurement activities based on defined KPIs and processes. It forms t
- Procurement Cost Centre ReportingCost Centre Controlling in Procurement · Procurement Reporting by Cost Centre · Procurement Cost Center ReportingProcurement cost centre reporting refers to the systematic capture, allocation and evaluation of all procurement-related costs by cost centre and cost object. I
- Procurement Data ModelEinkaufsdatenmodell · Purchasing Data Model · Procurement Data ModelThe procurement data model describes the structured representation of all procurement-relevant data objects, their attributes and their relationships to one ano
- Procurement FileVergabedokumentation · procurement file · tender fileA procurement file is the complete written documentation of a procurement or award procedure. It comprises all documents relevant to the procedure, from needs a
- 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 KPIsPurchasing KPIs · KPIs in procurement · Procurement controlling KPIsProcurement KPIs are quantifiable metrics with which companies assess the performance, efficiency and risks of their procurement function. They translate procur
- 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 logisticsInbound logistics · Procurement logistics management · Supply inboundProcurement logistics encompasses the planning, control and monitoring of the movement of goods from the supplier to the goods receipt of the purchasing company
- 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 marketingprocurement marketing · reverse marketing · supply marketingProcurement marketing refers to the active, market-oriented shaping of the relationships between a company and its suppliers. It shifts the perspective from mer
- 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 planningBeschaffungsplanung · Purchasing Planning · Procurement PlanningProcurement planning is the systematic preparation and structuring of all procurement activities of a company over a defined planning horizon. It translates pro
- 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 processProcurement process · Procure-to-Pay · P2P processThe procurement process describes the structured sequence of all activities from needs identification through supplier selection and ordering to goods receipt,
- 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 ScheduleVergabeplanung · Beschaffungszeitplan · VergabeterminplanThe procurement schedule is the chronological timeline of a procurement or tendering process in which all phases from requirements identification to contract co
- 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
- Procurement VolumeBeschaffungsvolumen · Spend Volume · Purchase VolumeProcurement volume refers to the total value or total quantity of goods and services procured by a company within a period. It is one of the central figures in
- Product Carbon Footprint (PCF)PCF · Product Carbon Footprint · product-specific carbon footprintThe Product Carbon Footprint (PCF) is the product-specific accounting of all greenhouse gas emissions generated across a product's entire life cycle – from raw
- Product cost calculationCalculation · Cost Breakdown · Should-Cost AnalysisProduct cost calculation is the systematic determination of all costs incurred in manufacturing a product – from material and labour to machinery and tooling th
- Product Environmental Footprint (PEF)PEF · product environmental footprint · Product Environmental Footprint Category RulesThe Product Environmental Footprint (PEF) is a methodology developed by the European Commission for the standardised measurement of the environmental footprint
- Product liability clauseProdukthaftung-Vereinbarung · Haftungsklausel · Product liability clauseThe product liability clause is a contract clause that determines who is liable for damage arising from a delivered product. For buyers and suppliers in the man
- 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
- Production ControlPPC · Production Control · FeinsteuerungProduction control refers to the short-term steering of manufacturing orders with regard to dates, capacities, materials and sequences. It translates the produc
- Production ramp-up (SOP)SOP · Start of Production · series startThe production ramp-up, or SOP (Start of Production) for short, describes the transition of a product or part family from prototype manufacturing to regular ser
- 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
- Promotion Planningpromotional planning · promotion planning · promotion managementPromotion planning refers to the systematic planning of promotional periods, special terms and sales-driving measures – from a buyer's perspective, above all wi
- 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
- Proof of performanceproof of performance · obligation to provide proof of performance · acceptance certificateProof of performance is the documented confirmation that a supplier or service provider has rendered a contractually agreed service in full and free of defects.
- Prototype ProcurementSample procurement · Prototype Sourcing · Pre-series procurementPrototype procurement refers to the entire procurement process for obtaining prototypes, samples and small series for product development and pre-series product
- PunchoutPunchout catalogue · Punch-Out · Punchout catalogue connectionPunchout refers to a technical process in which a buyer switches directly from their company's procurement system to a supplier's online shop and is automatical
- Purchase commitmenttake-or-pay clause · purchase commitment · minimum purchase agreementA purchase commitment (also known as a take-or-pay clause or offtake agreement) is a contractual undertaking by the buyer to accept a defined quantity or a mini
- Purchase OrderPOThe purchase order is a company's binding, written offer to a supplier to take delivery of goods or services on defined terms. It forms the legal and organisati
- Purchase Order ApprovalPurchase Order Approval · PO Approval · Order Approval ProcessPurchase order approval is the formal review and consent of a purchase order before it is sent to the supplier. It ensures that requirements, budget, prices and
- Purchase Order CancellationStornierung · Annullierung · BestellannullierungA purchase order cancellation refers to the complete or partial withdrawal of a purchase order already placed, before or after the order confirmation has been s
- Purchase Order Commitment in ProcurementBestellverbindlichkeit · Order Obligo · Purchase Order CommitmentPurchase order commitment describes the obligation that arises when a purchase order is sent to a supplier: Procurement usually binds its company in a legally b
- Purchase Order Process OptimisationPurchase Order Process Optimization · P2P optimisation · Optimising the ordering functionPurchase order process optimisation refers to the systematic improvement of all steps from demand identification through to goods receipt and invoice verificati
- Purchase order releasePurchase Order Release · Bestellabwicklung · Order ReleasePurchase order release refers to the process step in which an identified material or service requirement is converted into a legally binding purchase order issu
- Purchase price increase rateEinkaufspreissteigerungsrate · Preissteigerung im Einkauf · EinkaufspreisentwicklungThe purchase price increase rate describes the percentage change in the prices paid by a company for materials, parts and services over a given period. It shows
- Purchase Price Variance (PPV)PPV · Material price variance · Price variancePurchase Price Variance (PPV) refers to the deviation between the actual purchase price paid and a fixed reference price, usually the standard or target price f
- Purchase ProposalPurchase Requisition · Beschaffungsvorschlag · DispositionsvorschlagA purchase proposal is a proposal automatically generated by the ERP or inventory management system specifying which demand should be ordered, in what quantity
- Purchase Requisition (BANF)purchase requisition · material requisition · requisitionThe purchase requisition, or BANF for short, is the formal document or system entry with which a functional department reports its requirement for materials, se
- Purchase-to-Pay (P2P)P2P · Purchase to Pay · Procure-to-PayPurchase-to-Pay (P2P) describes the end-to-end business process from the initial requisition, through purchase order and goods receipt, to invoice verification
- 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
- Purchasing terms and conditionsGeneral purchasing terms and conditions · GPTC · purchasing conditionsPurchasing terms and conditions are the contractual framework conditions under which a company procures goods and services. They regulate prices, delivery dates
Q
- Quality (PPM)PPM · Parts Per Million · Parts-per-MillionQuality (PPM) refers to the defect rate of delivered parts, expressed in parts per million (Parts Per Million). In industrial procurement, the metric is a stand
- Quality agreementQuality Agreement · Quality Assurance Agreement · QA AgreementThe quality agreement is a contractual document in which the buyer and supplier bindingly define the specific quality requirements for products, processes and d
- Quality Assurance AgreementQAA · Quality Assurance Agreement · Quality AgreementThe quality assurance agreement (QAA), also known internationally as a Quality Agreement, is a contractual document in which buyer and supplier bindingly define
- Quality AuditsLieferantenaudit · Quality Audit · SystemauditQuality audits are systematic, independent examinations by which companies determine whether processes, products and management systems comply with defined requ
- Quality costs (COPQ)Cost of Poor Quality · COPQ · Failure CostsQuality costs, internationally often referred to as Cost of Poor Quality (COPQ), comprise all costs arising from defective products, processes or delivery perfo
- Quality GatesQuality Gate · Gate Review · Phase-Gate ProcessQuality gates are defined checkpoints in a process at which specified criteria decide whether a product, project or order proceeds. In industrial procurement, t
- Quality inspectionQualitätskontrolle · Quality Inspection · WareneingangsprüfungQuality inspection comprises all systematic measures by which procurement organisations verify that incoming goods, intermediate products and services meet the
- Quality Management in ProcurementSupplier Quality Management · SQM · LieferantenqualitätQuality management in procurement encompasses all processes by which buyers ensure that purchased materials, parts and services permanently meet the agreed requ
- Quantity deviation workflowMengenabweichungsprozess · Quantity Deviation Workflow · Quantity Difference ManagementThe quantity deviation workflow describes the rules-based process by which companies identify, assess and resolve situations where a delivered or reported quant
- Quarterly Business Review (QBR)QBR · Quarterly Review · Supplier Business ReviewThe Quarterly Business Review (QBR) is a structured, quarterly meeting between the procurement organisation and strategically important suppliers. It serves to
R
- Ramp-Down ManagementRamp-down · Phase-out management · End-of-life managementRamp-down management refers to the structured planning and control of the phase-out of a product or product family up to its final cessation of production. For
- Ramp-UpSeries production start-up · Production start-up · Launch phaseRamp-Up refers to the phased start of series production of a new product or new production line, in which unit volumes are gradually increased to the planned se
- Ramp-up managementStart-up management · Ramp-up control · Launch managementRamp-up management refers to the structured planning, control and monitoring of the transition phase from product development or prototype production to series
- Raw material escalation clauseGleitpreisvereinbarung · Materialpreisbindung · MaterialzuschlagsklauselThe raw material escalation clause is a contractual agreement that automatically adjusts the price of a good or service in line with the development of selected
- Raw Material IndexationPrice escalation clause · Indexation clause · Price escalationRaw material indexation refers to the contractual linking of purchase prices to the movement of defined raw material or reference indices. It creates transparen
- Raw Material SurchargeRohstoffzuschlag · Materialzuschlag · Raw Material Surcharge ClauseRaw material surcharge refers to a price surcharge itemised separately by the supplier that passes fluctuations in raw material costs through to the end product
- REACHSVHC · Kandidatenliste · Candidate ListREACH stands for “Registration, Evaluation, Authorisation and Restriction of Chemicals” and is the central EU chemicals regulation (Regulation (EC) No 1907/2006
- Rebatesdiscount · reimbursement · retro bonusA rebate refers to contractually agreed discounts or reimbursements that suppliers grant to buyers depending on call-off volumes, turnover development or other
- Recyclability AssessmentRecyclierbarkeitsbewertung · Recyclability Assessment · RecyclingfähigkeitsprüfungThe recyclability assessment is the systematic examination of the extent to which a product, assembly or material can be properly returned to the material cycle
- Recycled content rateRecyclatquote · Recyclatanteil · Recycled Content RateThe recycled content rate describes the proportional content of recyclate, i.e. recycled material, in a product, a component or packaging. For technical buyers,
- Recycling Raterecycling rate · recycling share · recovery rateThe recycling rate describes the proportion of a material, product or waste stream that is returned to the value creation cycle. For buyers and supply chain man
- Reference dataMaster Data · Stammdaten · Reference DataReference data is standardised master data that serves as a uniform basis of reference for business processes, systems and reports. In technical procurement, it
- RenegotiationPrice renegotiation · Renegotiation · Renegotiation of supply contractRenegotiation is the renewed negotiation of prices, terms or contract contents for an existing transaction or during ongoing contractual relationships. In pract
- Reorder Pointreorder level · reorder point method · order pointThe reorder point is the inventory level at which a new order is triggered. It links demand planning and procurement and ensures that material is available befo
- Reorder Point Procedurereorder point method · reorder point system · ROP methodThe reorder point procedure is a classic method of material requirements planning in which an order is automatically triggered as soon as the stock level of an
- ReplenishmentReplenishment planning · Reordering · Replenishment ManagementReplenishment refers to the systematic reordering of materials and items before stock levels become critically low. In industrial practice, the term covers both
- Replenishment lead timeReplenishment Lead Time · Replenishment Time · Restocking TimeReplenishment lead time denotes the period from triggering a purchase order until the goods are ready for use in the warehouse. It covers order handling, delive
- Reputational Risk in ProcurementReputationsrisiko Lieferkette · Reputation Risk Procurement · Image-Risiko BeschaffungReputational risk in procurement describes the danger that supplier misconduct or the company's own procurement decisions damage its image and credibility. It t
- RequalificationRequalification · New qualification · Supplier requalificationRequalification refers to the renewed qualification of a supplier, manufacturing process or product that had previously been successfully approved but has lost
- Request for DocumentsRequest for Documentation · Document Request · Nachreichung von UnterlagenA request for documents refers to the formal requesting of missing, incomplete or outdated documents from suppliers, applicants or authorities. In industrial pr
- Request for Information (RFI)RFI · Information Request · Supplier QuestionnaireThe Request for Information (RFI) is a non-binding information-gathering enquiry with which buyers first explore the market and potential suppliers. It typicall
- 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
- Request for QuotationRFQ · Request for Quotation · quotation requestThe request for quotation is a company's formal request to suppliers to submit a binding quotation for goods or services. It is the central instrument of market
- Request for Quote (RFQ)Quotation request · Price request · RFQRequest for Quote (RFQ) refers to the structured quotation request with which buyers obtain binding prices and terms from suppliers for clearly specified servic
- Requirement SpecificationSpecification · Requisition · requirements specificationThe requirement specification is the written, unambiguous description of all requirements for a good or service to be procured. It defines what is needed – in w
- Requirements AnalysisBedarfsermittlung · Bedarfsplanung · BedarfsrechercheRequirements analysis is the systematic process of identifying, structuring and assessing a company's specific procurement requirements. It stands at the beginn
- Requirements CatalogLastenheft · Specification · Requirements CatalogA requirements catalog is the structured, complete compilation of all functional, technical, commercial and formal requirements relating to a good or service to
- Requirements DeterminationBedarfsplanung · Bedarfsanalyse · Demand DeterminationRequirements determination is the systematic process by which a company establishes which materials, services or deliverables are needed in what quantity, quali
- Requirements managementRequirements Management · Anforderungssteuerung (requirement control) · Requirements EngineeringRequirements management refers to the structured process by which companies capture, document, evaluate and translate the needs of internal and external stakeho
- 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
- Requisition Cycle TimePurchase Requisition Lead Time · Requisition-to-Order Time · Requisition throughput timeThe Requisition Cycle Time describes the period from receipt of a purchase requisition to the release of the purchase order. It is one of the central KPIs in op
- 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
- Restricted Substances List (RSL)RSL · List of restricted substances · Substance ban listThe Restricted Substances List (RSL) is an industry- or company-specific list of substances whose use in products, components and materials is prohibited or res
- RetentionRetention · Payment holdback · WithholdingRetention refers to a portion of the agreed remuneration that the client withholds from invoice payments and releases only once defined conditions have been met
- Retention of TitleVorbehaltseigentum · Eigentumsvorbehalt Klausel · retention of titleRetention of title is an agreement under which the seller transfers ownership of the delivered goods only once the buyer has paid the purchase price in full. It
- Return DeliveryRücksendung · RMA · Return DeliveryA return delivery refers to the return of goods, materials or components from the customer or buyer to the supplier, for example due to defects, shortfalls, inc
- Return on investmentROI · return on capital · return on investment ratioReturn on investment (ROI) is a metric that expresses the ratio of profit or benefit to the invested capital costs. In industrial procurement, it is used to eva
- Returns processReturns management · RMA process · Return processThe returns process refers to the structured procedure for handling return shipments, return deliveries and complaints between customer and supplier. In industr
- 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
- Reverse FactoringSupply Chain Finance · SCF · Confirmed PayablesReverse factoring, also known as supply chain finance (SCF) or confirmed payables, is a financing instrument in which a buyer has the invoices of its suppliers
- 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
- Right to Auditright of audit · audit right · audit clauseThe right to audit refers to the contractually agreed right of a buyer to inspect the books, records, processes and systems of its suppliers or service provider
- 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
- RoHSRestriction of Hazardous Substances · RoHS Directive · RoHS 2RoHS stands for "Restriction of Hazardous Substances" and refers to EU Directive 2011/65/EU restricting certain hazardous substances in electrical and electroni
- ROI in ProcurementReturn on Investment · procurement ROI · procurement ROIROI in procurement (Return on Investment) measures the financial return a procurement measure generates in relation to its effort. It makes visible whether proj
- 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
- Rough Cut Capacity Planning (RCCP)RCCP · Rough capacity planning · Rough-Cut PlanningRough Cut Capacity Planning (RCCP) is a mid-term capacity planning method that allows companies to check whether the available resources are roughly sufficient
- RTO supplierReturn to Origin · RTO · Return-to-Origin supplierThe term RTO supplier denotes the supplier to which goods are returned as part of Return to Origin (RTO) – i.e. to the origin of the supply chain. In practice,
- Run at RateRaR · Rate Run · Capacity RunRun at Rate (RaR) is a defined validation measure in which a supplier demonstrates that it can produce a product in production quality and at the agreed cycle t
S
- S&OESales and Operations Execution · S&OE process · S&OP ExecutionS&OE stands for Sales and Operations Execution and refers to the short-term, daily or weekly execution control of demand, inventories and capacities. The term c
- 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
- Safe LaunchSafe Launch Plan · Launch Support · Launch protectionSafe Launch refers to a structured, time-limited monitoring procedure during the launch of new or modified parts, processes and suppliers, before and during the
- Safety CapacityKapazitätspuffer · Capacity Buffer · ReservekapazitätSafety capacity refers to capacity held beyond expected demand at suppliers or in a company's own manufacturing in order to absorb demand peaks, supply failures
- Safety stockSafety Stock · safety inventory · buffer stockSafety stock is the quantity of a material held beyond the demand-driven stock in order to cushion unforeseen fluctuations in demand or lead time. It is a centr
- Safety Stock Calculationsafety stock calculation · Safety Stock · Security StockSafety Stock Calculation refers to the systematic calculation of safety stock, i.e. the additional inventory reserve that covers unpredictable fluctuations in d
- Safety Time BufferSafety Time · Buffer Time · Lead Time BufferThe safety time buffer is a planned time reserve that buyers and supply chain managers build in between the delivery date and the actual requirement date. It ab
- Sales and Operations PlanningS&OP · Integrated Business Planning · IBPSales and Operations Planning (S&OP) is a monthly, cross-functional process that aligns demand planning, production planning and procurement on a coordinated op
- Sales Forecastsales forecast · sales projection · sales forecastingThe sales forecast is the structured estimate of future sales of products or services over a defined period. In industrial procurement, it serves as a central i
- Sample deliveryErstmusterlieferung · Vorserienmuster · ErstmusterA sample delivery is the initial delivery of a part or component by a supplier, which is inspected and approved prior to release for series production. It serve
- Sampling InspectionSampling Inspection · AQL Inspection · Acceptable Quality LimitSampling inspection is a quality inspection method in which conclusions about the quality of an entire quantity are drawn from a subset of a delivery or product
- Sanctions list screeningSanctions Screening · Sanctions Screening · Sanctions CheckSanctions list screening is the systematic comparison of business partners, contact persons and transactions against national and international sanctions lists.
- Savings ForecastSavings projection · Cost savings forecast · Procurement savings forecastThe savings forecast is the systematic prediction of expected savings in procurement over a defined planning horizon. It combines spend data, market trends and
- Savings LeakageSavings Erosion · Savings Realisation Gap · EinsparungsverfallSavings leakage refers to the loss of already negotiated or planned procurement savings before they become permanently embedded in a company's cost structure. I
- Savings PipelineSavings Tracking · Savings Management · Cost Savings PipelineThe savings pipeline is a structured controlling instrument that enables procurement organisations to systematically record and evidence planned, ongoing and re
- Savings RealizedRealized Savings · Savings Realisation · realised savingsSavings Realized refers to the share of procurement savings that has actually arrived in the profit and loss account. The term is distinguished from identified
- Savings TypesCost Savings Categories · Hard Savings · Soft SavingsSavings types refer to the different categories of cost savings in procurement, such as Hard Savings, Soft Savings, Cost Avoidance and cash flow effects. Clean
- SBTi targetsScience Based Targets · SBTi · Science Based Targets initiativeSBTi targets are climate targets that have been set and validated in accordance with the requirements of the Science Based Targets initiative (SBTi). They give
- 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
- Schedule AdherenceSchedule compliance · Schedule adherence · Schedule ComplianceSchedule Adherence refers to suppliers' and internal processes' adherence to agreed or planned dates for delivery, manufacturing and handover. The KPI shows wha
- SchedulingTerminmanagement · Lieferterminplanung · SchedulingScheduling refers to the systematic definition, coordination and monitoring of dates along the procurement and manufacturing chain. In industrial procurement, i
- Science Based TargetsSBT · SBTi targets · science-based climate targetsScience Based Targets (SBTs) are corporate climate targets that are aligned with the Paris Agreement and derive the required reduction in greenhouse gas emissio
- Scope 1 emissionsScope 1 · direct emissions · Direct EmissionsScope 1 emissions comprise all direct greenhouse gas emissions arising from a company's own facilities and vehicles. For buyers and supply chain managers, they
- Scope 2 EmissionsScope 2 · Category 2 Emissions · Market-Based Scope 2Scope 2 emissions are the indirect greenhouse gas emissions arising from the generation of purchased energy such as electricity, heat, steam or cooling. For ind
- Scope 3 EmissionsScope 3 Emissions · Scope 3 GHG · indirect value chain emissionsScope 3 emissions cover all greenhouse gas emissions generated indirectly along a company's value chain – both in upstream inputs and in the use and disposal of
- Scoring matrixBid scorecard · Supplier evaluation matrix · Scoring MatrixThe scoring matrix is a structured evaluation instrument with which buyers can systematically and transparently compare several bids or suppliers against define
- Scoring ModelScoring-Modell · Punktbewertungsverfahren · NutzwertanalyseA scoring model is a structured method for evaluating suppliers, bids or sourcing alternatives based on defined criteria with point values and weightings. It re
- 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
- Second-Life UtilisationSecond Use · Reuse · RemanufacturingSecond-life utilisation refers to the reuse of products, components or materials in a second deployment cycle after their primary purpose of use has been comple
- Self-BillingSelbstabrechnung · Selbstfakturierung · KundenrechnungSelf-billing refers to a process in which the customer creates the invoice for delivered goods and services themselves and submits it to the supplier for confir
- Series approvalSOP approval · start-of-production approval · PPAP approvalSeries approval is the formal transition of a part, assembly or supplier from the development and sample stage into series production. It marks the point from w
- Series production approval processSerienfreigabe · Erstbemusterung · SerienmusterfreigabeThe series production approval process is the formalised procedure by which a company releases a component, assembly or finished product for series delivery. It
- Service Credits (SLA)Service Level Credits · SLA Credits · Service-GutschriftService Credits are contractually agreed credits or price reductions that fall due when a supplier or service provider fails to achieve the performance metrics
- Service LevelService Level · Servicelevel · Alpha service levelThe service level denotes the proportion of demand cases or order items that can be served completely, on time and in the agreed quality by a supplier or from o
- Service Level Agreement (SLA)SLA · service level agreement · performance agreementA service level agreement (SLA) is a contractual agreement in which the provider and the customer define specific service characteristics, measurable metrics an
- Service Level ObjectivesSLA · Service Level Agreement · Service LevelThe service level objective is the binding definition of the quality of performance that a supplier or service provider must deliver to the customer. It forms t
- Service level target per commodity groupService level per commodity group · Target Service Level · product availability levelThe service level target per commodity group defines the level of product availability that a company bindingly aims to achieve for individual procurement or sa
- Set-OffOffset · Aufrechnung · VerrechnungSet-Off refers to the offsetting of receivables, whereby two companies offset mutual payment claims against each other so that only the balance needs to be sett
- 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
- Single-source managementSingle Sourcing · Single Source · Sole SourceSingle-source management refers to the targeted control of procurement through a single, deliberately selected supplier for a specific type of goods receipt or
- Slot BookingTime window booking · Time Slot Management · Slot terminal bookingSlot booking refers to the scheduled reservation of loading and unloading time windows between the shipper, recipient and freight forwarder. In the industrial p
- Slow-Mover AnalysisSlow Moving Items · Slow movers · C-class itemsThe slow-mover analysis is a systematic procedure for identifying and assessing items with low or irregular consumption in the warehouse stock. It helps buyers
- Small batch productionKleinserie · Kleinauflage · KleinserienproduktionSmall batch production refers to the manufacture of quantities typically between a few dozen and a few thousand units per order. In the DACH industrial environm
- Small-Order ProcessSmall-Order-Process · Kleinbedarfsbeschaffung · Low-Value-OrderingThe small-order process covers all steps for procuring goods and services with a low order value, typically below a defined approval threshold. Such orders ofte
- Sorting actionSortierung · Sortieraktion Qualitätssicherung · 100% SortierungA sorting action is the targeted manual or mechanical inspection and separation of a delivery into good and defective parts when a quality defect is suspected o
- 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
- Source-to-Pay (S2P)S2P · Purchase-to-Pay · E-ProcurementSource-to-Pay (S2P) denotes the end-to-end procurement process, frequently digitally supported in practice, from demand identification through supplier selectio
- 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
- SPCStatistical Process Control · statistische Prozesslenkung · statistische ProzessregelungSPC (Statistical Process Control, German: statistische Prozesslenkung) is a quality engineering method for the continuous monitoring and control of manufacturin
- Special CharacteristicsSC · special characteristics · Critical CharacteristicsSpecial Characteristics (SC) are product and process characteristics whose failure or deviation can directly jeopardise the safety of persons, legal compliance
- Specification ManagementAnforderungsmanagement · Specification Management · Technische SpezifikationSpecification management refers to the systematic capture, maintenance, approval and change control of technical and commercial requirements for materials, comp
- Specification of workLeistungsverzeichnis · LV · SpecificationThe specification of work (Leistungsbeschreibung) defines in binding terms which services, deliveries or construction works a supplier must render, and in what
- 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 AnalysisSpend Analysis · Expenditure Analysis · Spend AnalyticsSpend analysis refers to the systematic capture, cleansing and evaluation of all of a company's expenditure on goods and services. It creates the data-driven fo
- Spend AnalyticsSpend Analysis · Expenditure analysis · Spend analysisSpend Analytics refers to the systematic collection, cleansing, classification and analysis of all of a company's procurement expenditure. For buyers and supply
- Spend CubeSpend Cube Analysis · Spend Analysis Cube · 3D Spend AnalysisThe spend cube is a three-dimensional analysis model that systematically evaluates procurement volume by supplier, category and time period. It forms the data f
- 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
- Step-in rightStep-in clause · Right of entry · Step-in rightThe step-in right (right of entry) gives a contracting party the right, in certain crisis situations, to step directly into the position of a supplier or subcon
- Stockholding StrategyStockholding Strategy · Inventory Strategy · Stocking StrategyThe stockholding strategy defines which materials a company holds in stock, in what quantity and for what period. It balances product availability, capital tied
- Stop Shipmentdelivery stop · delivery block · Shipment HoldStop Shipment refers to the instruction to temporarily suspend an upcoming or ongoing goods delivery. The stop is typically initiated by the buyer or the qualit
- 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
- Strategic PartnershipSupplier partnership · strategic supplier relationship · Supplier PartnershipA strategic partnership denotes a long-term collaboration between a buyer and a supplier that goes beyond a purely transactional relationship. Both parties purs
- SubcontractingOutsourcing · Subcontracting · Contract ManufacturingSubcontracting refers to the transfer of tasks, processes or manufacturing services to external companies that perform them under their own name or to a detaile
- Substantive Invoice Verificationfachliche Rechnungsprüfung · inhaltliche Rechnungsprüfung · Invoice VerificationSubstantive invoice verification is the professional check of whether a delivery or service has actually been rendered in full and in accordance with the contra
- Suitability assessmentSupplier Suitability · Supplier Qualification · Supplier SelectionThe suitability assessment is the systematic process by which procurement organisations determine, before awarding a contract, whether a supplier or service can
- Suitability CriteriaSupplier Qualification Criteria · Eignungsprüfung · QualifikationskriterienSuitability criteria are defined minimum requirements and evaluation benchmarks against which buyers assess whether a potential supplier or service provider is
- SupplierLieferant · Vendor · LieferantenpartnerA supplier is a company or service provider that delivers raw materials, components, traded goods or services to a buyer. In industrial procurement, the supplie
- Supplier acquisitionSupplier Sourcing · Supplier search · Source of supply identificationSupplier acquisition refers to the structured process by which companies identify, evaluate and contractually bind new suppliers and service providers. It is a
- Supplier Annual ReviewSupplier Annual Review · Jahresgespräch Lieferant · Supplier Business ReviewThe supplier annual review is a structured, annually recurring review between procurement or supply chain and strategically relevant suppliers. It serves as a j
- Supplier approvalSupplier Qualification · Lieferantenqualifizierung · Supplier ApprovalSupplier approval is the formal process by which a company qualifies and approves a supplier for the supply of defined materials, components or services. It lin
- Supplier AuditSupplier Audit · Vendors Audit · Supplier QualificationThe supplier audit is a structured, generally on-site examination of a supplier with regard to quality, processes, capacities, compliance and performance capabi
- Supplier audit programmeSupplier Audit Programme · Supplier Audit Program · Supplier Audit PlanThe supplier audit programme is a structured, scheduled process for assessing and monitoring suppliers with regard to quality, processes, compliance and perform
- Supplier Audit ScoreSupplier Audit Score · Lieferanten-Auditbewertung · Audit RatingThe supplier audit score is a metric that condenses the results of a supplier audit into a standardised score. It enables buyers and quality managers to compare
- Supplier AwardSupplier Award programme · Supplier award · Supplier of the YearThe Supplier Award is a structured recognition with which companies honour outstanding supplier performance over a defined period. It consolidates measurable as
- Supplier bank data verificationBank data verification of suppliers · Supplier Bank Account Verification · IBAN validationSupplier bank data verification is a control process in which the procurement and finance departments verify suppliers' bank details before payments are made. I
- Supplier baseSupplier Base · Lieferantenportfolio · LieferantenstammThe supplier base denotes the totality of all active suppliers of a company. It covers their number, composition, regions and performance profiles and is thus a
- Supplier benchmarkSupplier Benchmarking · Supplier comparison · Supplier evaluationThe supplier benchmark is a systematic comparison of suppliers based on defined criteria such as price, quality, delivery reliability, service and capacity for
- Supplier capacity assessmentKapazitätsprüfung Lieferant · Supplier Capacity Assessment · KapazitätsauditThe supplier capacity assessment is the systematic comparison between a company's planned demand and a supplier's actually available production or delivery capa
- Supplier capacity matchingCapacity Matching · Capacity Reconciliation · Capacity VerificationSupplier capacity matching describes the systematic check of whether a supplier can actually provide the production capacities, release dates and personnel reso
- Supplier capacity riskSupplier capacity risk · Supplier capacity bottleneck · Capacity riskSupplier capacity risk describes the danger that a supplier fails to deliver the agreed quantities, deadlines or lot sizes in the required form because its prod
- Supplier CertificateLieferantenqualifizierungsnachweis · Supplier Certificate · Supplier CertificationA supplier certificate is documentary evidence with which a supplier confirms compliance with standards, norms or statutory requirements. In industrial procurem
- Supplier changeoverLieferantenaustausch · Supplier Change · Supplier SwitchA supplier changeover refers to the deliberate replacement of an existing supplier with a new provider for goods, components or services. It can be carried out
- Supplier classificationLieferantensegmentierung · Lieferantenportfolio · Supplier ClassificationSupplier classification is a systematic process by which companies categorise their suppliers into categories and strategy groups based on defined criteria. The
- Supplier Co-InnovationSupplier Co-Innovation · Supplier Innovation · Supplier-driven innovationSupplier Co-Innovation describes the systematic collaboration between a company and its suppliers to jointly shape new products, processes or technologies as ea
- Supplier Code of ConductSupplier Code of Conduct · SCoC · Supplier CodeA Supplier Code of Conduct (SCoC) is a binding code of conduct that defines minimum ethical, social and environmental standards for suppliers. It documents expe
- 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 Corrective Action Request (SCAR)SCAR · Supplier Corrective Action · Supplier Corrective Action RequestA Supplier Corrective Action Request (SCAR) is a formal document by which a company requires a supplier to perform a systematic root cause analysis and permanen
- Supplier Credit LimitLieferantenkreditlimit · Supplier Credit Limit · Lieferanten-Credit-LimitThe supplier credit limit is the maximum permitted open financing or goods value that a company allows towards a single supplier. It caps the default risk, e.g.
- Supplier Creditworthiness AssessmentSupplier Credit Check · Bonitätsprüfung Lieferant · Supplier Financial Risk AssessmentSupplier creditworthiness assessment is the systematic evaluation of a supplier's financial and economic stability, both before order placement and during the o
- Supplier Cyber RiskThird Party Cyber Risk · Supplier Cyber Risk · Lieferanten-CyberrisikoSupplier cyber risk describes the danger that security incidents or vulnerabilities at suppliers and service providers lead to outages, data leakage or financia
- Supplier DaySupplier Day · Supplier Event · Supplier ConferenceA Supplier Day is a scheduled event day on which a company meets selected suppliers in person to align strategies, requirements and development goals. It combin
- Supplier de-riskingSupplier risk management · Supply risk management · Supplier Risk ManagementSupplier de-risking refers to the systematic identification, assessment and reduction of risks arising from suppliers and supplier relationships. It encompasses
- Supplier developmentSupplier Development · Lieferantenförderung · SuppliersourcedevelopmentSupplier development refers to the systematic, long-term improvement of the performance of existing suppliers through targeted collaboration between procurement
- Supplier Development ConceptLieferantenentwicklung · Supplier Development · Supplier Development ProgramA supplier development concept is a structured plan for systematically improving existing suppliers in terms of quality, cost, delivery capability and sustainab
- Supplier Development PlanSupplier development plan · Supplier development programme · Supplier Development ProgramA Supplier Development Plan is a structured programme of measures with which companies systematically improve the performance of strategic suppliers. It defines
- Supplier development workshopSupplier Development Workshop · Lieferanten-Workshop · Supplier WorkshopA supplier development workshop is a moderated, structured meeting between a buying company and a supplier with the aim of measurably improving the supplier's p
- Supplier DiscoverySupplier search · Supplier Sourcing · Supplier identificationSupplier Discovery refers to the structured process of identifying and pre-assessing potential suppliers for specific materials, components or services. The ter
- Supplier EnablementSupplier Enablement Management · Supplier Enablement · Supplier EnablementSupplier enablement refers to the systematic enablement and integration of suppliers into a company's purchasing and procurement processes. The aim is to involv
- Supplier Energy AuditLieferanten-Energieaudit · Supplier Energy Audit · Energieaudit beim LieferantenA supplier energy audit is the systematic review of a supplier's energy consumption and energy management systems, frequently as part of supplier evaluation. Fo
- Supplier EscalationSupplier Escalation · Supplier Escalation Process · Escalation ManagementSupplier escalation refers to the structured process by which companies address performance or quality issues with suppliers at higher negotiation or decision-m
- Supplier ESG Improvement PlanESG Action Plan · Supplier Sustainability Improvement Plan · Supplier Sustainability Action PlanA supplier ESG improvement plan is a structured, time-bound action programme with which companies systematically remediate environmental, social and governance
- Supplier Evaluationsupplier evaluation · vendor rating · supplier assessmentSupplier evaluation is a systematic procedure for the objective assessment of the performance capability and reliability of suppliers. It comprises the definiti
- Supplier Evaluation CriteriaSupplier Evaluation Criteria · Lieferantenscorecard · Supplier ScorecardSupplier evaluation criteria are the defined standards against which procurement professionals assess the performance and reliability of suppliers. They typical
- Supplier failure riskSupplier Failure Risk · Supply Risk · Supplier RiskSupplier failure risk describes the danger that a supplier cannot partially or fully deliver its contractually promised services. For industrial buyers, it is o
- Supplier Feasibility ReviewFeasibility Study · Feasibility Assessment · Supplier Feasibility AnalysisA supplier feasibility review is the structured assessment of whether a potential or existing supplier can execute a specific order technically, in terms of cap
- Supplier Financial HealthSupplier Financial Health · Supplier Financial Health Check · Supplier CreditworthinessSupplier Financial Health describes a supplier's financial stability and solvency. For buyers, it is a central factor in securing the supply chain, because a fi
- Supplier financial riskSupplier Financial Risk · Lieferantenausfallrisiko · Financial Risk of SupplierSupplier financial risk describes the danger that a supplier, due to its financial situation, cannot fulfil its contractual delivery obligations, or can only do
- Supplier IdentifierSupplier Identifier · Lieferantennummer · Vendor IDThe supplier identifier is a unique, immutable mark that distinguishes each supplier from all others within a data model or ERP system. It is the technical foun
- 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 Innovation DaySupplier Day · Innovation Day · Supplier innovation workshopThe Supplier Innovation Day is an organised event format in which companies enter into a structured innovation dialogue with selected suppliers and potential su
- Supplier innovation roadmapSupplier Innovation Roadmap · Supplier Innovation Partnership · Joint Innovation RoadmapA supplier innovation roadmap is a jointly created, structured development programme in which the procurement organisation and strategic suppliers plan technolo
- Supplier IntegrationSupplier Integration · Lieferantenanbindung · Supplier EnablementSupplier integration refers to the systematic involvement of suppliers in a company's planning, procurement and value creation processes – both operationally an
- Supplier Landscape AnalysisSupplier Base Analysis · Lieferantenportfoliomanagement · Supplier Landscape AnalysisThe supplier landscape analysis is the systematic recording, evaluation and structuring of all suppliers and supply relationships of a company. It creates trans
- Supplier Lifecycle Management (SLM)SLM · supplier lifecycle management · supplier managementSupplier Lifecycle Management (SLM) refers to the systematic management of all phases of a supplier relationship – from identification and qualification through
- Supplier Location RiskLocation risk · Country risk · Supplier Location RiskSupplier location risk describes the threat to the ability to supply that results from a supplier producing, storing or shipping at a specific geographic locati
- Supplier Longlistsupplier longlist · longlist · supplier long listThe supplier longlist is the complete, pre-filtered overview of all potentially suitable suppliers for a specific procurement project or category. It forms the
- Supplier ManagementSupplier Management · Lieferantensteuerung · Vendor ManagementSupplier management refers to the systematic planning, steering and development of all supplier relationships across the entire lifecycle – from selection throu
- Supplier master data managementSupplier Master Data Management · Lieferantenstammdaten · Stammdatenverwaltung LieferantenSupplier master data management refers to the systematic recording, updating and quality control of all master data relating to suppliers in ERP and procurement
- Supplier meetingSupplier meeting · Supplier review · Supplier appointmentThe supplier meeting is a structured conversation between buyer and supplier, used to negotiate and align objectives such as price conditions, delivery reliabil
- Supplier migrationSupplier Migration · Supplier Relocation · Verlagerung der BeschaffungSupplier migration refers to the planned transfer of procurement volumes or manufacturing orders from one supplier to another, for example from an incumbent sup
- Supplier networkSupplier Network · Lieferantennetz · Supplier BaseA supplier network is the totality of all suppliers, service providers and subcontractors with which a company systematically maintains business relationships.
- Supplier onboardingSupplier Onboarding · Lieferanten-Onboarding · LieferantenanbindungSupplier onboarding refers to the structured process by which a company integrates new suppliers economically, technically, legally and in terms of systems. It
- Supplier onboardingLieferantenonboarding · Lieferanten-Onboarding · Vendor OnboardingSupplier onboarding refers to the structured process by which companies admit new suppliers from first contact to full integration capability in procurement sys
- Supplier Performance EvaluationSupplier Performance Evaluation · Vendor Rating · Supplier EvaluationSupplier performance evaluation (also known as supplier performance evaluation or vendor rating) is the systematic measurement, assessment and steering of suppl
- Supplier PortalLieferantenportal · Vendor Portal · LieferantenaustauschportalA supplier portal is a web-based portal through which companies exchange information, processes and documents with their suppliers. It centralises enquiries, or
- Supplier PortalSupplier Portal · Lieferantenplattform · LieferantencockpitA supplier portal is a web-based platform through which companies communicate with their suppliers, handle business processes and exchange data. It serves as th
- Supplier PortfolioLieferantenportfolio-Management · Supplier Portfolio · LieferantensegmentierungThe supplier portfolio refers to the entirety of the suppliers with which a company maintains business relationships, together with their structured evaluation
- Supplier PPM targetPPM supplier · Parts per Million · PPM target valueThe supplier PPM target is a quantified requirement for the maximum number of defects per one million parts or units delivered by a supplier. It translates qual
- Supplier QualificationSupplier Qualification · Lieferantenzulassung · Supplier Qualification ProcessSupplier qualification is the structured process by which companies assess whether a potential supplier can meet the technical, commercial and quality-related r
- Supplier quality targetSupplier Quality Target · Lieferantenqualität Zielwert · Supplier Quality ObjectiveThe supplier quality target is the binding, measurable quality requirement that a company imposes on its suppliers and anchors contractually as well as operatio
- Supplier Ramp-up ManagementSupplier Launch Management · Supplier Ramp-up · Launch ManagementSupplier ramp-up management refers to the structured planning, support and control of all activities required to prepare a new or existing supplier for series s
- Supplier RatingVendor Rating · Supplier Assessment · Supplier RatingSupplier rating refers to the systematic, usually periodic assessment of suppliers based on defined criteria such as delivery reliability, quality, prices and s
- Supplier RatingLieferantenbewertung · Supplier Rating · Supplier EvaluationSupplier rating refers to the systematic, usually periodic evaluation of suppliers based on defined criteria such as delivery quality, delivery reliability, pri
- Supplier rating modelLieferantenbewertung · Supplier Rating · Supplier EvaluationA supplier rating model is a structured assessment system with which procurement organisations evaluate suppliers against defined criteria such as quality, deli
- Supplier Relationship ManagementSRM · Supplier Relationship Management · Supplier managementSupplier relationship management comprises the systematic planning, steering and continuous development of all supplier relationships across their entire lifecy
- Supplier riskSupplier Risk · Supplier Risk Management · LieferantenrisikomanagementSupplier risk refers to the danger that a supplier fails to fulfil its contractual obligations, or fulfils them inadequately, resulting in supply, cost or quali
- Supplier Risk ManagementLieferantenrisikomanagement · Supplier Risk · SRMSupplier Risk Management refers to the systematic identification, assessment and control of risks that suppliers and service providers pose to a company. It cov
- Supplier Sanctions ScreeningSanctions Screening · Sanctions List Screening · Compliance ScreeningSupplier sanctions screening refers to the systematic checking of suppliers, service providers and their owners against national and international sanctions lis
- Supplier scoreVendor Rating · Supplier Score · LieferantenbewertungThe supplier score is a condensed key figure or point rating that procurement organisations use to make supplier performance objectively measurable. It consolid
- Supplier ScorecardSupplier evaluation · Supplier score · Supplier evaluationThe supplier scorecard is a structured assessment tool with which procurement departments regularly record supplier performance based on defined metrics. It mak
- Supplier segmentationSupplier Segmentation · Supplier Classification · ABC Analysis SuppliersSupplier segmentation refers to the systematic division of the supplier portfolio according to criteria such as business volume, risk potential and substitutabi
- Supplier SegmentationSupplier segmentation · Supplier classification · Supplier portfolioSupplier segmentation refers to the systematic classification of suppliers according to strategic importance, risk potential and performance capability. The aim
- Supplier Segmentation MatrixSupplier segmentation · Supplier portfolio · Kraljic MatrixThe Supplier Segmentation Matrix is a strategic procurement tool used to classify suppliers into categories according to defined criteria and manage them with v
- Supplier selectionSupplier Selection · Lieferantenfindung · BezugsquellenauswahlSupplier selection is the process by which companies identify the most suitable sources of supply for materials, parts or services from potential suppliers and
- Supplier Self-AssessmentSupplier Self-Assessment · Lieferantenfragebogen · Supplier QuestionnaireThe supplier self-assessment is a structured document in which a potential or existing supplier provides information about the company, services, certifications
- Supplier ShortlistSupplier shortlist · Supplier pre-selection · Supplier longlist and shortlistThe supplier shortlist is a binding pre-selection of suppliers who, following a systematic suitability assessment, are considered for a specific procurement pro
- Supplier StatusSupplier Status · Lieferantenklassifizierung · LieferantenqualifizierungSupplier status describes the systematically determined evaluation and classification of a supplier along qualitative and quantitative criteria such as delivery
- 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
- Supplier visitSupplier visit · Supplier Visit · Supplier site inspectionThe supplier visit is a planned, on-site assessment and maintenance of the business relationship with a supplier at their production or administrative site. It
- Supplier's DeclarationLangzeitlieferantenerklärung · Supplier's Declaration · Ursprungserklärung des LieferantenThe supplier's declaration is a customs law declaration by a supplier confirming that a delivered good meets the origin rules for preferences and can therefore
- Supply base optimisationSBO · Supply Base Management · Supplier portfolio managementSupply base optimisation refers to the systematic analysis, consolidation and further development of a company's supplier portfolio. The aim is to reduce the nu
- Supply Chain AnalyticsSCA · Supply Chain Intelligence · Supply Chain AnalysisSupply Chain Analytics refers to the systematic evaluation of data along the entire supply chain in order to steer procurement, production, warehousing and dist
- Supply Chain Carbon Footprint (SCF)SCF · Supply Chain CO₂ Footprint · Carbon Footprint of the Supply ChainThe Supply Chain Carbon Footprint (SCF) describes the entirety of greenhouse gas emissions generated along a company's entire supply chain – from raw material e
- Supply Chain DecarbonisationSupply Chain Decarbonization · Scope 3 Reduction · Klimaneutrale LieferketteSupply chain decarbonisation refers to the systematic reduction of greenhouse gas emissions along the entire value chain, in particular Scope 3 emissions, which
- Supply Chain Due Diligence ActLkSG · Lieferkettensorgfaltspflichtengesetz · Human Rights Due DiligenceThe Supply Chain Due Diligence Act (officially Lieferkettensorgfaltspflichtengesetz, LkSG) obliges companies in Germany to exercise due diligence in their globa
- Supply Chain Due Diligence Act (LkSG)LkSG · Lieferkettengesetz · LieferkettensorgfaltspflichtengesetzThe German Supply Chain Due Diligence Act (LkSG) obliges companies in Germany to observe human rights and environmental standards in their global supply chains.
- Supply Chain FinanceSCF · supply chain financing · reverse factoringSupply Chain Finance (SCF) refers to financing solutions that optimise payment flows between buyer and supplier. At its core, it is about enabling suppliers to
- 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 Chain VisibilitySCV · Supply chain transparency · Supply chain visibilitySupply Chain Visibility refers to a company's ability to view all relevant inventory levels, processes and events along its supply chain in near real time. For
- 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 PlanningSupply Chain Planning · Material Supply Planning · Procurement PlanningSupply planning refers to medium-term planning of how the material-related demand of production is covered on time and economically. It combines demand planning
- 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
- Sustainable packaging categorySustainable Packaging Procurement · Packaging category · Green Packaging SourcingThe sustainable packaging category describes the procurement of packaging materials and packaging solutions under explicit ecological and social criteria. For i
- 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
- System supplierSystem partner · System supplier · OEM supplierA system supplier does not deliver individual parts but fully assembled, tested assemblies or complete modules, up to and including fully functional subsystems.
T
- Target costingTarget Costing · Target Costing Process · Design-to-CostTarget costing is a method in which the permissible cost frame for a product or component is derived from the price achievable in the market – and not, the othe
- Target costingTarget cost calculation · Target cost management · Target Costing SystemTarget costing is a market-oriented method of cost planning in which the permissible price of a product is dictated by the market and the permissible costs are
- Target-Actual Price ComparisonPreis-Soll-Ist-Vergleich · Preisabweichungsanalyse · Price Variance AnalysisThe target-actual price comparison is the systematic juxtaposition of planned (target) prices with the prices actually realised (actual) in procurement. It is o
- Tariff preferencesPreferential origin · Preferential agreement · Customs concessionTariff preferences are customs concessions granted under preferential agreements between states or groups of states that allow the import or export of goods at
- Technical Invoice Verificationsubstantive invoice verification · invoice verification · technical invoice checkTechnical invoice verification is the substantive reconciliation of an incoming invoice against the purchase order and the receipt of goods or services. It ensu
- 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
- Tender QuestionnaireSupplier questionnaire · Vendor questionnaire · RFI questionnaireA tender questionnaire is a structured list of questions with which buyers, before or during a request, collect all information relevant to evaluation from supp
- 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
- Termination for Causetermination for good cause · immediate termination · termination for defaultTermination for Cause refers to the extraordinary termination of a supply or framework agreement for good cause, for example in the event of a material breach b
- Termination for Conveniencetermination for convenience clause · termination at free discretion · convenience terminationTermination for Convenience refers to the buyer's right to terminate a contract for its own reasons without any breach by the supplier. In industrial procuremen
- Termination for material groundfristlose Kündigung · außerordentliche Kündigung · termination for causeThe right of termination for material ground enables contractual parties to end a long-term contract prematurely when adherence to the contract becomes unreason
- Terms and conditionsAGB · Allgemeine Geschäftsbedingungen · Allgemeine LieferbedingungenTerms and conditions (T&Cs) are pre-formulated contract terms that one contracting party establishes for a large number of contracts and presents to the other p
- 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
- Three-Way Match3-way match · three-way match · 3-Way MatchThe three-way match is a verification procedure in the procurement process in which the purchase order, goods receipt and invoice are systematically checked for
- Three-Way Match RateThree-Way-Matching · 3-way match · Triple matchingThe Three-Way Match Rate is a process KPI in procurement that indicates what percentage of all purchase orders can be processed without manual clarification thr
- Throughput timeLead Time · Durchlauf · Cycle TimeThroughput time refers to the period that an order, material or product requires from the start of a process to its completion. In industrial procurement it oft
- Tier-n TransparencySupply Chain Visibility · Multi-Tier Transparency · Supply chain visibilityTier-n transparency refers to a company's ability to know not only first-tier (Tier 1) suppliers, but also to identify and assess suppliers at the second, third
- Time Management (Zeitwirtschaft)Zeiterfassung · Arbeitszeitwirtschaft · VorgabezeitenTime management (Zeitwirtschaft) refers to the systematic part of work preparation that deals with the determination, administration and application of labour a
- Time-to-MarketTTM · Time to Market · market launch timeTime-to-Market refers to the period from the product idea or development release through to the market launch of a product. For technical buyers it is a key tar
- Toll Manufacturingcontract manufacturing · contract processing · contract fillingToll manufacturing refers to contract manufacturing in which a company provides the contract manufacturer with all materials, components or semi-finished produc
- Tool CirculationTool Circulation · Werkzeugkreislauf · WerkzeugpoolTool circulation refers to the controlled cycle of tools and tooling withdrawals between use, reconditioning and re-provisioning in production. For technical bu
- Tool maintenanceWerkzeuginstandhaltung · Werkzeugpflege · Tool MaintenanceTool maintenance encompasses all planned and forward-looking measures to preserve the functionality of tools in manufacturing, such as cutting, pressing, inject
- Tool releaseTool release · Tool acceptance · Tool acceptance reportTool release is the formal confirmation by the customer or purchasing department that a tool is suitable for series production and may be used. It usually follo
- Tooling DepositWerkzeugbürgschaft · Werkzeugsicherheit · Tool DepositA tooling deposit is a financial security that a commissioning party provides to a toolmaker or supplier for tools it has financed, or conversely demands from t
- 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 OwnershipTotal Cost of Ownership · TCO · Life Cycle CostsTotal cost of ownership (TCO) captures all costs incurred by a procured item over its entire life cycle – from acquisition through operation, maintenance and en
- 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
- Total Landed Cost (TLC)Landed Cost · TLC · Landed CostsTotal Landed Cost (TLC) refers to the total cost of a product or service from the supplier's plant to the point of use within one's own company. The term combin
- Touchless RateTouchless-Quote · Touchless processing rate · touch-free process handlingThe touchless rate describes the proportion of business processes that run fully automatically without manual intervention. In procurement, the metric usually r
- TraceabilityRückverfolgbarkeit · Rückverfolgung · Tracking and TracingTraceability refers to the seamless traceability of products, components and materials along the entire supply chain. For technical buyers it is a central instr
- Traceability of MaterialsMaterial traceability · Traceability · Batch traceabilityTraceability of materials (material traceability) refers to the ability to document the origin, processing route and point of use of materials along the entire
- 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
- Transport CostsTransportkosten · Freight Costs · Transportation CostsTransport costs refer to all costs incurred through the carriage of goods, materials and finished parts along the supply chain. In industrial procurement, they
- Transport RiskTransportgefahr · Transport risk · VersandrisikoTransport risk denotes the danger that goods are damaged, lost, delayed in transit or legally in the wrong sphere of responsibility on their way from supplier t
- 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
U
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
- Value Stream AnalysisValue Stream Analysis · VSA · Value Stream MappingValue stream analysis (VSA) is a lean management method used to capture, map and evaluate all process steps of a material or information flow. Its aim is to dis
- Variance analysisTarget-actual comparison · Variance analysis · Plan-actual varianceVariance analysis is the systematic comparison between planned and actual outcomes in procurement, production and logistics. It helps buyers and supply chain ma
- 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
- VAT-ID verificationVAT-ID verification · USt-IdNr. verification · VAT validationVAT-ID verification refers to the validation of a business partner's value added tax identification number (VAT identification number, German: USt-IdNr.), typic
- Vendor Managed Inventory (VMI)VMI · Supplier Managed Inventory · Supplier-Managed StockVendor Managed Inventory (VMI) is a logistics collaboration model in which the supplier actively controls stock availability at the customer's site. Instead of
- Vendor Master DataLieferantenstammdaten · Creditor Master Data · Vendor Master DataVendor master data are the master records of all suppliers in a company's ERP or financial system. They include address data, bank details, payment terms, tax i
- Vendor Master Data CreationKreditorenstammsatz · Vendor Master · LieferantenstammsatzVendor master data creation refers to the structured process by which companies capture, review and maintain the master data of their suppliers in ERP and finan
- Vendor OnboardingSupplier Onboarding · Supplier Integration · Vendor Account CreationVendor onboarding refers to the structured process by which companies integrate new suppliers commercially, legally and operationally into their procurement org
- 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 discount tier verificationStaffelrabattprüfung · Prüfung von Mengenrabattstaffeln · Volume discount checkVolume discount tier verification is the systematic review and evaluation of graduated price reductions that suppliers grant once certain order quantities are r
- 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
- Volume price breakTiered price · Volume discount · Block priceA volume price break is a tiered pricing model in which the unit price falls as the order quantity increases. For technical buyers it is one of the central inst
- Volume rebateMengenrabatt · Volume Discount · JahresbonusA volume rebate refers to contractually agreed discounts granted by a supplier when the buyer reaches a defined purchase quantity or turnover threshold within a
W
- WarehousingWareneinlagerung · Bestandshaltung · WarehousingWarehousing means bringing in and permanently holding goods, raw materials, semi-finished and finished parts in a warehouse. For industrial buyers it is not mer
- WarrantyGuarantee · Statutory warranty · Product WarrantyThe warranty refers to contractually agreed statutory warranty and guarantee claims of a supplier for delivered goods, components or services. For buyers, it is
- Warranty agreementWarranty agreement · Warranty contract · HerstellergarantieA warranty agreement is a contractual commitment by the supplier that a service or product possesses certain characteristics or functions over a defined period,
- Warranty claimsGewährleistung · Sachmängelhaftung · MängelgewährleistungWarranty claims are the contractual and statutory rights of a buyer when delivered goods or services do not have the agreed quality. For technical buyers in the
- WEEEElektroG · Electrical and Electronic Equipment Act · electronic scrapWEEE stands for "Waste Electrical and Electronic Equipment" and refers to EU Directive 2012/19/EU on the take-back and recovery of electrical and electronic equ
- Whistleblowingwhistleblowing system · whistleblower system · reporting systemWhistleblowing refers to the reporting of misconduct, legal violations or irregularities by internal or external whistleblowers. In DACH industry, whistleblowin
- Whistleblowing systemWhistleblower system · reporting office · whistleblowing systemA whistleblowing system is an organised reporting procedure through which employees, suppliers and third parties can report compliance violations within the com
- Workflow organisationProcess organization · Workflow organizationWorkflow organisation describes the temporal and logistical arrangement of work processes within a company, in particular determining who completes which tasks
- Workflow rules (P2P)P2P workflow rules · Procure-to-Pay rule set · Purchase order workflow rulesWorkflow rules (P2P) are the rules stored in the procurement system that automatically govern the procure-to-pay process from purchase requisition to invoice se
- Working Capital ManagementWCM · Net Working Capital · Cash Conversion CycleWorking capital management refers to the systematic control of current assets, i.e. the cash cycle between inventories, receivables and liabilities. For buyers
Z
- Zero-Based BudgetingZero-Based Budgeting · ZBB · Zero Base BudgetingZero-based budgeting (ZBB) is a budgeting method in which every cost estimate must be justified from scratch in every planning period. In contrast to traditiona
- Zero-series procurementzero series · pre-series · pre-series procurementZero-series procurement covers the procurement of materials, parts and components for the zero series, i.e. the final trial stage before a product enters series
#
- 2/10 Net2/10 Net 30 · 2% 10 Net 30 · cash discount terms2/10 Net refers to a payment term under which the buyer receives a deduction of two per cent (cash discount) if payment is made within ten days; otherwise the i
- 3PLThird-Party Logistics · Third Party Logistics Provider · Logistics Outsourcing3PL (Third-Party Logistics) refers to the outsourcing of logistics services such as warehousing, order picking and transport to a specialised external service p
- 4PLFourth Party Logistics · 4PL provider · Logistics integrator4PL (Fourth Party Logistics) refers to the outsourcing of complete logistics management to a neutral service provider who, as Lead Logistics Provider, manages t
- 5 Why5 Why Method · 5 Why Analysis · Five WhysThe 5 Why method is a simple yet effective technique for determining the cause of a problem by repeatedly asking the question “Why?”. For buyers and supply chai
- 8D containmentContainment Measures · Interim Containment Action · Sofortmaßnahmen8D containment refers to the interim actions within the 8D report process used to contain a quality defect that has already occurred and protect against further
- 8D Report8D report · 8D methodology · Eight DisciplinesThe 8D report is a standardised procedure for structured, team-based problem solving that leads through eight disciplines from problem description to effectiven