Chapter 1 - Definitions Flashcards
Holistic management of relationships formed between buyers and suppliers based on the criticality of the goods or services being procured.
Supplier Relationship Management
A supplier that is part of the same company as its customer.
Internal Supplier
A supplier that is independent of the organisation it provides goods/services to.
External Supplier
A benefit that an organisation can use to outperform its competitors in the marketplace.
Competitive Advantage
CIPS Relationship Spectrum
- Adversarial
- Arm’s Length
- Transactional
- Moderate
- Bespoke
- Single Source
- Outsourced
- Strategic
- Collaborative
- Partnership
- Co-destiny
When a buyer chooses just one supplier to contract with from a number of suppliers in the marketplace.
Single-Source
A situation where just two suppliers are chosen from multiple options in a marketplace with a view of maintaining a degree of competition during the contract term.
Dual-Source
A non-competitive situation where there is only one supplier of goods or services who can fulfil the requirement of the buyer at a specific time.
Sole-Source
An essential reliance on both parties to make the relationship work at a strategic level for its continued success.
Symbiosis
The ratio of liquid assets to liabilities.
Liquidity Ratio
A measure of how the business is being funded, based on its ratio of debt to equity, quality of debt or cost of debt.
Gearing
A process involving risk identification, assessment, management and mitigation.
Risk Management
The process of working with a supplier to improve its processes and/or the products or services it delivers.
Supplier Development
Failure of performance within a contract.
Material Breach
A situation that involves exposure to danger.
Risk
