{"id":29349,"date":"2026-11-06T18:41:50","date_gmt":"2026-11-06T18:41:50","guid":{"rendered":"https:\/\/evaluationshub.com\/glossary\/"},"modified":"2026-11-06T19:00:34","modified_gmt":"2026-11-06T19:00:34","slug":"glossary","status":"publish","type":"page","link":"https:\/\/evaluationshub.com\/glossary\/","title":{"rendered":"Procurement and Supplier Management Glossary"},"content":{"rendered":"<div id=\"eh-glossary\">\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"DefinedTermSet\",\"@id\":\"https:\/\/evaluationshub.com\/glossary\/\",\"name\":\"Procurement and supplier management glossary\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/\",\"publisher\":{\"@type\":\"Organization\",\"name\":\"EvaluationsHub\",\"url\":\"https:\/\/evaluationshub.com\/\"},\"hasDefinedTerm\":[{\"@type\":\"DefinedTerm\",\"name\":\"8D (Eight Disciplines)\",\"description\":\"A structured problem-solving method that grew out of the automotive industry. 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Sole source means only one supplier can provide it.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#single-source-and-sole-source\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"SLA (service level agreement)\",\"description\":\"The measurable service levels a supplier commits to, such as response times or availability, and what happens when they are missed.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#sla-service-level-agreement\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"SLM (supplier lifecycle management)\",\"description\":\"Managing a supplier through every stage, from intake, sourcing and qualification to onboarding, performance, risk, development and offboarding, in one connected process.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#slm-supplier-lifecycle-management\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Source-to-pay (S2P)\",\"description\":\"The full purchasing process from spend analysis and sourcing to contracting, ordering and payment.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#source-to-pay-s2p\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Spend analysis\",\"description\":\"Collecting, cleaning and classifying purchasing data to see what is bought, from whom and at what price.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#spend-analysis\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"SPM (supplier performance management)\",\"description\":\"Measuring, analysing and improving how suppliers perform against agreed expectations, typically through scorecards, reviews and corrective actions.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#spm-supplier-performance-management\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"SRM (supplier relationship management)\",\"description\":\"A structured approach to managing interactions with suppliers to create more value from the most important relationships.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#srm-supplier-relationship-management\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Strategic supplier\",\"description\":\"In the Kraljic matrix, a supplier with high supply risk and high profit impact. These relationships call for partnership, joint planning and senior attention.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#strategic-supplier\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Supplier development\",\"description\":\"Working actively with a supplier to improve its capabilities or performance, through training, shared targets or joint projects.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#supplier-development\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Supplier diversity\",\"description\":\"Deliberately including businesses owned by under-represented groups, or small and local businesses, in the supply base.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#supplier-diversity\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Supplier portal\",\"description\":\"A secure website where suppliers update their own data, upload documents, answer surveys and respond to corrective actions.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#supplier-portal\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Supplier scorecard\",\"description\":\"A periodic report that rates a supplier on agreed KPIs, often weighted, and shows the trend over time.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#supplier-scorecard\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Supplier survey\",\"description\":\"A questionnaire sent to suppliers, for self-assessment or data collection, or to internal stakeholders to rate a supplier.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#supplier-survey\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Tail spend\",\"description\":\"The many small, low-value purchases that make up a small share of spend but a large share of suppliers and transactions.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#tail-spend\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"TCO (total cost of ownership)\",\"description\":\"The full cost of buying and using something over its life, including price, logistics, quality costs, maintenance and disposal.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#tco-total-cost-of-ownership\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Tier 1, tier 2, tier N\",\"description\":\"Tier 1 suppliers sell to you directly. Tier 2 suppliers sell to your tier 1 suppliers, and so on down the chain.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#tier-1-tier-2-tier-n\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"},{\"@type\":\"DefinedTerm\",\"name\":\"Weighted scoring\",\"description\":\"Giving each evaluation criterion a weight that reflects its importance, so the total score reflects what matters most for that supplier group.\",\"url\":\"https:\/\/evaluationshub.com\/glossary\/#weighted-scoring\",\"inDefinedTermSet\":\"https:\/\/evaluationshub.com\/glossary\/\"}]}<\/script><\/p>\n<style>\n#eh-glossary{--b:#35a0e8;--bd:#1d7fc0;--ink:#0f1923;--mut:#5a6b7d;--ln:#e5eaf0;--wash:#ebf5fd;--soft:#f6f9fc;color:var(--ink);line-height:1.65}\n#eh-glossary *{box-sizing:border-box}\n#eh-glossary .w{max-width:900px;margin:0 auto;padding:0 20px}\n#eh-glossary .hero{padding:60px 0 34px}\n#eh-glossary .eyebrow{font-size:12px;font-weight:700;letter-spacing:.11em;text-transform:uppercase;color:var(--bd);margin:0 0 14px}\n#eh-glossary h1{font-size:40px;line-height:1.14;font-weight:700;margin:0 0 16px;letter-spacing:-.015em}\n#eh-glossary .lede{font-size:18px;color:var(--mut);margin:0;max-width:62ch}\n#eh-glossary .az{position:static;background:#fff;border-top:1px solid var(--ln);border-bottom:1px solid var(--ln);padding:12px 0;margin-bottom:8px}\n#eh-glossary .az .w{display:flex;flex-wrap:wrap;gap:6px}\n#eh-glossary .az a{display:inline-flex;align-items:center;justify-content:center;min-width:34px;height:34px;padding:0 8px;border-radius:8px;font-weight:700;font-size:14px;color:var(--ink);text-decoration:none;background:var(--soft)}\n#eh-glossary .az a:hover{background:var(--wash);color:var(--bd)}\n#eh-glossary .grp{padding:30px 0 6px;scroll-margin-top:110px}\n#eh-glossary .grp h2{font-size:28px;font-weight:700;color:var(--b);margin:0 0 6px;border-bottom:2px solid var(--wash);padding-bottom:8px}\n#eh-glossary dl{margin:0}\n#eh-glossary .term{padding:18px 0;border-bottom:1px solid var(--ln);scroll-margin-top:110px}\n#eh-glossary dt{font-size:19px;font-weight:700;margin:0 0 6px;color:var(--ink)}\n#eh-glossary dd{margin:0}\n#eh-glossary dd p{font-size:16.5px;color:#2b3646;margin:0}\n#eh-glossary dd p.rel{margin-top:8px;display:flex;flex-wrap:wrap;gap:6px 18px}\n#eh-glossary dd p.rel a{font-size:14.5px;font-weight:600;color:var(--bd);text-decoration:none}\n#eh-glossary dd p.rel a:hover{text-decoration:underline}\n#eh-glossary .cta{margin:50px 0 70px;padding:30px;border-radius:14px;background:var(--wash);display:flex;flex-wrap:wrap;gap:18px;align-items:center;justify-content:space-between}\n#eh-glossary .cta h3{font-size:21px;margin:0 0 4px}\n#eh-glossary .cta p{margin:0;color:var(--mut);font-size:15.5px}\n#eh-glossary .btns{display:flex;gap:10px;flex-wrap:wrap}\n#eh-glossary .btn{display:inline-block;padding:11px 18px;border-radius:8px;font-weight:700;font-size:14.5px;text-decoration:none}\n#eh-glossary .btn.p{background:var(--b);color:#fff}\n#eh-glossary .btn.g{background:#fff;color:var(--ink);border:1px solid var(--ln)}\n@media(max-width:700px){#eh-glossary h1{font-size:30px}#eh-glossary .hero{padding:40px 0 24px}}\n<\/style>\n<div class=\"hero\">\n<div class=\"w\">\n<p class=\"eyebrow\">Reference<\/p>\n<h1>Procurement and supplier management glossary<\/h1>\n<p class=\"lede\">67 terms buyers, category managers and quality teams use every day, from 8D and the Kraljic matrix to OTIF, PPAP and CSRD. Each definition links to a deeper guide or a free template where we have one.<\/p>\n<\/div>\n<\/div>\n<nav class=\"az\" aria-label=\"Jump to letter\">\n<div class=\"w\"><a href=\"#g-09\">0\u20139<\/a><a href=\"#g-A\">A<\/a><a href=\"#g-B\">B<\/a><a href=\"#g-C\">C<\/a><a href=\"#g-D\">D<\/a><a href=\"#g-E\">E<\/a><a href=\"#g-F\">F<\/a><a href=\"#g-I\">I<\/a><a href=\"#g-K\">K<\/a><a href=\"#g-L\">L<\/a><a href=\"#g-M\">M<\/a><a href=\"#g-N\">N<\/a><a href=\"#g-O\">O<\/a><a href=\"#g-P\">P<\/a><a href=\"#g-Q\">Q<\/a><a href=\"#g-R\">R<\/a><a href=\"#g-S\">S<\/a><a href=\"#g-T\">T<\/a><a href=\"#g-W\">W<\/a><\/div>\n<\/nav>\n<div class=\"w\">\n<section class=\"grp\" id=\"g-09\">\n<h2>0\u20139<\/h2>\n<dl>\n<div class=\"term\" id=\"8d-eight-disciplines\">\n<dt>8D (Eight Disciplines)<\/dt>\n<dd>\n<p>A structured problem-solving method that grew out of the automotive industry. It runs from forming a team and containing the problem, through root cause and permanent correction, to preventing recurrence. Buyers often ask suppliers for an 8D report after a serious quality issue.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-8d-corrective-action-tracker\/\">8D corrective action tracker \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"360-supplier-feedback\">\n<dt>360 supplier feedback<\/dt>\n<dd>\n<p>Collecting ratings on one supplier from several internal groups at once, such as quality, logistics, finance and the end users, so the score reflects more than the buyer\u2019s view.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-360-feedback\/\">360 supplier feedback \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-A\">\n<h2>A<\/h2>\n<dl>\n<div class=\"term\" id=\"abc-analysis\">\n<dt>ABC analysis<\/dt>\n<dd>\n<p>Ranking suppliers or items by their share of spend or value, usually following the Pareto pattern where a small group accounts for most of the spend. A quick first step before deeper segmentation.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"approved-supplier-list-asl\">\n<dt>Approved supplier list (ASL)<\/dt>\n<dd>\n<p>The list of suppliers a company has qualified and allows buyers to order from. Also called an approved vendor list (AVL).<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-qualification\/\">Supplier qualification \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-B\">\n<h2>B<\/h2>\n<dl>\n<div class=\"term\" id=\"balanced-supplier-scorecard\">\n<dt>Balanced supplier scorecard<\/dt>\n<dd>\n<p>A scorecard that weighs several dimensions, such as quality, delivery, cost, service, innovation and sustainability, instead of judging a supplier on price or one metric alone.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-scorecards\/\">Supplier scorecards \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"bottleneck-supplier\">\n<dt>Bottleneck supplier<\/dt>\n<dd>\n<p>In the Kraljic matrix, a supplier with high supply risk but low profit impact: small spend, hard to replace. The focus is securing supply and reducing dependency.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-segmentation\/\">Supplier segmentation \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-C\">\n<h2>C<\/h2>\n<dl>\n<div class=\"term\" id=\"capa-corrective-and-preventive-action\">\n<dt>CAPA (corrective and preventive action)<\/dt>\n<dd>\n<p>The process of fixing a problem that has occurred (corrective action) and removing the conditions that could cause it or similar problems in future (preventive action). Common in regulated industries and quality management systems.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-capa\/\">Supplier CAPA \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"category-management\">\n<dt>Category management<\/dt>\n<dd>\n<p>Managing purchases in groups of related goods or services, each with its own strategy, market analysis and supplier plan, rather than buying item by item.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"cbam-carbon-border-adjustment-mechanism\">\n<dt>CBAM (Carbon Border Adjustment Mechanism)<\/dt>\n<dd>\n<p>An EU mechanism that puts a carbon price on certain imports, such as iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. Importers need emissions data from their non-EU suppliers.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"certificate-of-conformity\">\n<dt>Certificate of conformity<\/dt>\n<dd>\n<p>A document in which a supplier or a third party states that a product or batch meets the specified requirements or standards.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"code-of-conduct-supplier\">\n<dt>Code of conduct (supplier)<\/dt>\n<dd>\n<p>The ethical, social and environmental standards a company expects its suppliers to meet, usually acknowledged in writing during onboarding.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"contract-lifecycle-management-clm\">\n<dt>Contract lifecycle management (CLM)<\/dt>\n<dd>\n<p>Managing a contract from request and drafting through negotiation, signature, obligations, renewal and expiry.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-contract-management\/\">Supplier contract management \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"cost-of-poor-quality-copq\">\n<dt>Cost of poor quality (COPQ)<\/dt>\n<dd>\n<p>The total cost caused by defects: scrap, rework, returns, extra inspection, downtime and lost customers. A strong argument for measuring supplier quality.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"csddd\">\n<dt>CSDDD<\/dt>\n<dd>\n<p>The EU Corporate Sustainability Due Diligence Directive. It requires large companies to identify, prevent and address human rights and environmental impacts in their own operations and their chain of activities, including suppliers. Its scope and dates were revised by the EU Omnibus simplification package, so check the current text.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-esg-csrd-compliance\/\">ESG and CSRD compliance \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"csrd\">\n<dt>CSRD<\/dt>\n<dd>\n<p>The EU Corporate Sustainability Reporting Directive. Companies in scope report on sustainability under the European Sustainability Reporting Standards (ESRS), including information from their value chain. Its scope and dates were revised by the EU Omnibus simplification package, so check the current text.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-esg-csrd-compliance\/\">ESG and CSRD compliance \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-D\">\n<h2>D<\/h2>\n<dl>\n<div class=\"term\" id=\"delivery-performance\">\n<dt>Delivery performance<\/dt>\n<dd>\n<p>How reliably a supplier delivers on the agreed date and quantity. Usually measured as on-time delivery (OTD) or on time in full (OTIF).<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"due-diligence-supplier\">\n<dt>Due diligence (supplier)<\/dt>\n<dd>\n<p>Checking a supplier\u2019s legal, financial, ethical and compliance standing before and during the relationship.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-risk-management\/\">Supplier risk management \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-E\">\n<h2>E<\/h2>\n<dl>\n<div class=\"term\" id=\"escalation\">\n<dt>Escalation<\/dt>\n<dd>\n<p>Moving a supplier issue to a higher level, internally or at the supplier, when the normal route has not resolved it. Good escalation rules say who, when and on what evidence.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"esg\">\n<dt>ESG<\/dt>\n<dd>\n<p>Environmental, social and governance criteria used to assess how responsibly a company, or its supplier, operates.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/esg-sustainability-supplier-survey\/\">ESG supplier questionnaire \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"esrs\">\n<dt>ESRS<\/dt>\n<dd>\n<p>The European Sustainability Reporting Standards, the reporting standards used under the CSRD.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-F\">\n<h2>F<\/h2>\n<dl>\n<div class=\"term\" id=\"first-article-inspection-fai\">\n<dt>First article inspection (FAI)<\/dt>\n<dd>\n<p>A full check of the first parts from a new or changed production process to confirm they meet every requirement before series production.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-I\">\n<h2>I<\/h2>\n<dl>\n<div class=\"term\" id=\"iatf-16949\">\n<dt>IATF 16949<\/dt>\n<dd>\n<p>The quality management standard for the automotive supply chain. It builds on ISO 9001 with automotive-specific requirements.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/automotive-supplier-survey-iatf-16949\/\">Automotive supplier survey (IATF 16949) \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"incoterms\">\n<dt>Incoterms<\/dt>\n<dd>\n<p>International Commercial Terms published by the ICC. They define who pays for and carries the risk of transport, insurance and customs at each step, for example EXW, FCA or DDP.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"iso-9001\">\n<dt>ISO 9001<\/dt>\n<dd>\n<p>The international standard for quality management systems. Holding the certificate is a common minimum requirement for suppliers.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"iso-14001\">\n<dt>ISO 14001<\/dt>\n<dd>\n<p>The international standard for environmental management systems.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"iso-27001\">\n<dt>ISO 27001<\/dt>\n<dd>\n<p>The international standard for information security management systems. Relevant when a supplier handles your data or connects to your systems.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/trust-center\/\">Trust Center \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-K\">\n<h2>K<\/h2>\n<dl>\n<div class=\"term\" id=\"kpi-key-performance-indicator\">\n<dt>KPI (key performance indicator)<\/dt>\n<dd>\n<p>A measurable value that shows whether a supplier, or the purchasing function, is meeting its goals. Examples are OTIF, PPM and price variance.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/weighted-supplier-scorecard\/\">Weighted supplier scorecard \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"kraljic-matrix\">\n<dt>Kraljic matrix<\/dt>\n<dd>\n<p>A portfolio model introduced by Peter Kraljic in the Harvard Business Review in 1983. It plots purchases on supply risk and profit impact, which gives four groups: strategic, leverage, bottleneck and non-critical. Each group needs a different strategy.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/kraljic-matrix-supplier-performance-segmentation\/\">How to use the Kraljic matrix \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/supplier-segmentation\/\">Supplier segmentation \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-L\">\n<h2>L<\/h2>\n<dl>\n<div class=\"term\" id=\"lead-time\">\n<dt>Lead time<\/dt>\n<dd>\n<p>The time between placing an order and receiving the goods or service.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"leverage-supplier\">\n<dt>Leverage supplier<\/dt>\n<dd>\n<p>In the Kraljic matrix, a supplier with high profit impact but low supply risk: significant spend and several alternatives. Competition and negotiation create value here.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-segmentation\/\">Supplier segmentation \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-M\">\n<h2>M<\/h2>\n<dl>\n<div class=\"term\" id=\"make-or-buy-decision\">\n<dt>Make-or-buy decision<\/dt>\n<dd>\n<p>Deciding whether to produce something in-house or buy it from a supplier, based on cost, capability, capacity and strategy.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"maverick-spend\">\n<dt>Maverick spend<\/dt>\n<dd>\n<p>Purchases made outside agreed contracts, suppliers or processes. It weakens negotiated terms and hides risk.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/procurement-intake\/\">Procurement intake \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"mro\">\n<dt>MRO<\/dt>\n<dd>\n<p>Maintenance, repair and operations: the supplies needed to keep facilities and equipment running, rather than materials that go into the product.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-N\">\n<h2>N<\/h2>\n<dl>\n<div class=\"term\" id=\"non-conformance-ncr\">\n<dt>Non-conformance (NCR)<\/dt>\n<dd>\n<p>A product, process or delivery that does not meet the specified requirement. A non-conformance report records it and often starts a corrective action.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-quality-management\/\">Supplier quality management \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"non-critical-supplier\">\n<dt>Non-critical supplier<\/dt>\n<dd>\n<p>In the Kraljic matrix, a supplier with low supply risk and low profit impact. The goal is efficient, low-effort buying.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-O\">\n<h2>O<\/h2>\n<dl>\n<div class=\"term\" id=\"offboarding\">\n<dt>Offboarding<\/dt>\n<dd>\n<p>Ending a supplier relationship in an orderly way: closing open orders, recovering assets and data, settling obligations and updating systems.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-offboarding-checklist\/\">Supplier offboarding checklist \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"onboarding\">\n<dt>Onboarding<\/dt>\n<dd>\n<p>Bringing a new supplier into your systems and processes: collecting company data, certificates, bank details and agreements, and approving them for use.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-onboarding\/\">Supplier onboarding \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-onboarding-checklist\/\">Onboarding checklist \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"otif-on-time-in-full\">\n<dt>OTIF (on time in full)<\/dt>\n<dd>\n<p>The share of deliveries that arrive on the agreed date with the full ordered quantity. Stricter than on-time delivery alone.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-P\">\n<h2>P<\/h2>\n<dl>\n<div class=\"term\" id=\"ppap-production-part-approval-process\">\n<dt>PPAP (Production Part Approval Process)<\/dt>\n<dd>\n<p>The automotive industry process, defined by AIAG, in which a supplier proves that its production process can consistently make parts that meet requirements. It uses submission levels 1 to 5.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"ppm-parts-per-million\">\n<dt>PPM (parts per million)<\/dt>\n<dd>\n<p>The number of defective parts per million delivered. A standard quality KPI in manufacturing.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"pre-qualification\">\n<dt>Pre-qualification<\/dt>\n<dd>\n<p>A first screening of potential suppliers on basic criteria, such as finances, certifications and capacity, before they are invited to bid or onboarded.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-qualification\/\">Supplier qualification \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"procure-to-pay-p2p\">\n<dt>Procure-to-pay (P2P)<\/dt>\n<dd>\n<p>The operational process from requisition and purchase order to goods receipt, invoice and payment.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"procurement-intake\">\n<dt>Procurement intake<\/dt>\n<dd>\n<p>The front door for purchase requests: how employees ask for something to be bought, and how the request is routed, approved and passed to sourcing.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/procurement-intake\/\">Procurement intake \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-intake-request\/\">Supplier intake request template \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-Q\">\n<h2>Q<\/h2>\n<dl>\n<div class=\"term\" id=\"qbr-quarterly-business-review\">\n<dt>QBR (quarterly business review)<\/dt>\n<dd>\n<p>A structured, regular meeting with a key supplier to review performance against agreed KPIs, open issues, improvement plans and the outlook.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-qbr-software\/\">Supplier QBRs \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-qbr-business-review-pack\/\">QBR pack template \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-R\">\n<h2>R<\/h2>\n<dl>\n<div class=\"term\" id=\"rfi-rfq-and-rfp-rfx\">\n<dt>RFI, RFQ and RFP (RFx)<\/dt>\n<dd>\n<p>Requests sent to suppliers during sourcing. A request for information gathers market information, a request for quotation asks for prices on a defined need, and a request for proposal asks for a full solution and offer.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/rfx-sourcing-software\/\">RFx sourcing \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/templates\/rfx-evaluation-matrix\/\">RFx evaluation matrix \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"risk-register-supplier\">\n<dt>Risk register (supplier)<\/dt>\n<dd>\n<p>A list of identified supplier risks with their likelihood, impact, owner and mitigation, reviewed on a schedule.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/supplier-risk-register\/\">Supplier risk register \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"root-cause-analysis\">\n<dt>Root cause analysis<\/dt>\n<dd>\n<p>Finding the underlying cause of a problem rather than its symptoms, for example with the 5 Whys or an Ishikawa (fishbone) diagram.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-S\">\n<h2>S<\/h2>\n<dl>\n<div class=\"term\" id=\"scope-3-emissions\">\n<dt>Scope 3 emissions<\/dt>\n<dd>\n<p>Under the GHG Protocol, the indirect emissions in a company\u2019s value chain. Purchased goods and services are often the largest category, which is why buyers ask suppliers for emissions data.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"segmentation-supplier\">\n<dt>Segmentation (supplier)<\/dt>\n<dd>\n<p>Grouping suppliers by importance and risk so each group gets the right level of attention, evaluation and contact. The Kraljic matrix is the best-known model.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-segmentation\/\">Supplier segmentation \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"should-cost-analysis\">\n<dt>Should-cost analysis<\/dt>\n<dd>\n<p>Estimating what a product ought to cost from materials, labour, overheads and margin, to challenge a supplier\u2019s price with facts.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"single-source-and-sole-source\">\n<dt>Single source and sole source<\/dt>\n<dd>\n<p>Single source means you choose to buy from one supplier although others exist. Sole source means only one supplier can provide it.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"sla-service-level-agreement\">\n<dt>SLA (service level agreement)<\/dt>\n<dd>\n<p>The measurable service levels a supplier commits to, such as response times or availability, and what happens when they are missed.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"slm-supplier-lifecycle-management\">\n<dt>SLM (supplier lifecycle management)<\/dt>\n<dd>\n<p>Managing a supplier through every stage, from intake, sourcing and qualification to onboarding, performance, risk, development and offboarding, in one connected process.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/features\/\">All capabilities \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"source-to-pay-s2p\">\n<dt>Source-to-pay (S2P)<\/dt>\n<dd>\n<p>The full purchasing process from spend analysis and sourcing to contracting, ordering and payment.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"spend-analysis\">\n<dt>Spend analysis<\/dt>\n<dd>\n<p>Collecting, cleaning and classifying purchasing data to see what is bought, from whom and at what price.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"spm-supplier-performance-management\">\n<dt>SPM (supplier performance management)<\/dt>\n<dd>\n<p>Measuring, analysing and improving how suppliers perform against agreed expectations, typically through scorecards, reviews and corrective actions.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/what-is-a-supplier-scorecard\/\">What is a supplier scorecard \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"srm-supplier-relationship-management\">\n<dt>SRM (supplier relationship management)<\/dt>\n<dd>\n<p>A structured approach to managing interactions with suppliers to create more value from the most important relationships.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-relationship-management\/\">Supplier relationship management \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"strategic-supplier\">\n<dt>Strategic supplier<\/dt>\n<dd>\n<p>In the Kraljic matrix, a supplier with high supply risk and high profit impact. These relationships call for partnership, joint planning and senior attention.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-segmentation\/\">Supplier segmentation \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"supplier-development\">\n<dt>Supplier development<\/dt>\n<dd>\n<p>Working actively with a supplier to improve its capabilities or performance, through training, shared targets or joint projects.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"supplier-diversity\">\n<dt>Supplier diversity<\/dt>\n<dd>\n<p>Deliberately including businesses owned by under-represented groups, or small and local businesses, in the supply base.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"supplier-portal\">\n<dt>Supplier portal<\/dt>\n<dd>\n<p>A secure website where suppliers update their own data, upload documents, answer surveys and respond to corrective actions.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-portal\/\">Supplier portal \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"supplier-scorecard\">\n<dt>Supplier scorecard<\/dt>\n<dd>\n<p>A periodic report that rates a supplier on agreed KPIs, often weighted, and shows the trend over time.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-scorecards\/\">Supplier scorecards \u2192<\/a><a href=\"https:\/\/evaluationshub.com\/templates\/weighted-supplier-scorecard\/\">Weighted scorecard template \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"supplier-survey\">\n<dt>Supplier survey<\/dt>\n<dd>\n<p>A questionnaire sent to suppliers, for self-assessment or data collection, or to internal stakeholders to rate a supplier.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/supplier-surveys\/\">Supplier surveys \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-T\">\n<h2>T<\/h2>\n<dl>\n<div class=\"term\" id=\"tail-spend\">\n<dt>Tail spend<\/dt>\n<dd>\n<p>The many small, low-value purchases that make up a small share of spend but a large share of suppliers and transactions.<\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"tco-total-cost-of-ownership\">\n<dt>TCO (total cost of ownership)<\/dt>\n<dd>\n<p>The full cost of buying and using something over its life, including price, logistics, quality costs, maintenance and disposal.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/business-case\/\">Build the business case \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<div class=\"term\" id=\"tier-1-tier-2-tier-n\">\n<dt>Tier 1, tier 2, tier N<\/dt>\n<dd>\n<p>Tier 1 suppliers sell to you directly. Tier 2 suppliers sell to your tier 1 suppliers, and so on down the chain.<\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<section class=\"grp\" id=\"g-W\">\n<h2>W<\/h2>\n<dl>\n<div class=\"term\" id=\"weighted-scoring\">\n<dt>Weighted scoring<\/dt>\n<dd>\n<p>Giving each evaluation criterion a weight that reflects its importance, so the total score reflects what matters most for that supplier group.<\/p>\n<p class=\"rel\"><a href=\"https:\/\/evaluationshub.com\/templates\/rfx-evaluation-matrix\/\">RFx evaluation matrix \u2192<\/a><\/p>\n<\/dd>\n<\/div>\n<\/dl>\n<\/section>\n<div class=\"cta\">\n<div>\n<h3>Put the terms to work<\/h3>\n<p>Download a free Excel template, or see how EvaluationsHub runs the whole supplier lifecycle.<\/p>\n<\/div>\n<div class=\"btns\"><a class=\"btn g\" href=\"https:\/\/evaluationshub.com\/templates\/\">Free templates<\/a><a class=\"btn p\" href=\"https:\/\/evaluationshub.com\/demo\/\">Book a demo<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Reference Procurement and supplier management glossary 67 terms buyers, category managers and quality teams use every day, from 8D and the Kraljic matrix to OTIF, PPAP and CSRD. Each definition links to a deeper guide or a free template where we have one. 0\u20139ABCDEFIKLMNOPQRSTW 0\u20139 8D (Eight Disciplines) A structured problem-solving method that grew out [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","_wds_title":"Procurement & Supplier Management Glossary (67 Terms) | EvaluationsHub","_wds_metadesc":"Clear definitions of 67 procurement and supplier management terms, from 8D, CAPA and the Kraljic matrix to OTIF, PPAP, CSRD and supplier scorecards.","_wds_meta-robots-noindex":null,"_wds_meta-robots-nofollow":null,"_wds_canonical":"","footnotes":""},"class_list":["post-29349","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/pages\/29349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/comments?post=29349"}],"version-history":[{"count":0,"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/pages\/29349\/revisions"}],"wp:attachment":[{"href":"https:\/\/evaluationshub.com\/api-v1\/wp\/v2\/media?parent=29349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}