Glossary

T

TABULATION OF RESPONSES

The recording of responses for the purposes of comparison, analysis and record keeping.

TAIL SPEND

Tail spend is that spend for any firm, which is not actively managed in all the spend categories and may have an impact on the firm’s financial performance due to its impact on SG&A and COGS. It contains a small portion of the spend (10–20% under each spend category) but a large number of suppliers accounting for it.

TALL STRUCTURE

Also known as a hierarchical structure and based on a pyramid – every staff member has somebody to report to.

TANGIBLE

Something you can physically see or touch.

TARGET AUDIENCE

People or organizations at which products such as a film, advertisement or website is aimed.

TARGETED GROUP BUSINESS (TG)

A certified business designated by the commissioner of Administration that is majority owned and operated by a woman, person with disabilities, or a member of a specific minority group who provides goods, products, or services within purchasing categories designated by the commissioner.

TARIFF

A tax paid on a particular type of import or export.

TECHNICAL (OR CONFORMANCE) SPECIFICATION

The set of standards that a requirement must meet or exceed.

TECHNOLOGY CHASM

The gap between the early adopters and larger market segments such as early majority in a product life cycle.

TELEMATICS

Information technology dealing with the long-distance transmission of computerized information.

TENDER

A request from a buying organization to invite suppliers to formally quote on a large value project.

TERM CONTRACTS

Contracts written to last a period of time and include agreed terms.

TERMS AND CONDITIONS

A phrase generally applied to the rules under which all bids must be submitted, and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors.

TERTIARY SECTOR

The third stage of the production and manufacturing process, where a service is delivered in industries, e.g., banking, communications and marketing.

TESTIMONIAL

A formal statement from a customer giving feedback about the product, service or company and often used for promotional purposes.

THE CARBON TRUST

An independent, expert partner of leading organizations around the world, helping them contribute to and benefit from a more sustainable future through carbon reduction, resource efficiency strategies and commercializing low carbon technologies.

THE GREENHOUSE GAS PROTOCOL (GHG PROTOCOL) CORPORATE STANDARD

The most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.

THIRD-PARTY AUDIT

An inspection of an organization by an independent company or body.

THIRD-PARTY LOGISTICS (3PL)

The use of third-party businesses to outsource part or all of an organization’s fulfilment, logistics, transport, warehousing or distribution.

THIRD-SECTOR ORGANIZATIONS (TSOS)

Not-for-profit, non-governmental organizations run with the aim of achieving social goals, such as charities or community groups.

THRESHOLD

In the procurement context, an upper limit to the amount a contract may cost without certain legal requirements coming into force.

TIER 1 SUPPLIERS

Tier 1 suppliers are manufacturers that deal directly with OEM companies. These are often major companies in their own right. You may recognize names like Bosch or BASF. Though Bosch is primarily a tier 1 supplier for the automotive industry, they’re also well known for their own power tool product lines.

TIER 2 SUPPLIERS

While tier 1 suppliers are creating parts and equipment, they generally don’t make the pieces that make up those parts. For that, they turn to tier 2 suppliers. Tier 2 suppliers deal directly with the tier 1 suppliers, not the OEMs.

TITLE

The instrument or document whereby ownership of property is established.

TOOLING

Cutting tools, molds, fixtures of accessories needed on a machine to manufacture a product.

TORT

A wrongful act, other than a breach of contract, such that the law permits compensation of damages.

TOTAL COST APPROACH

An approach that considers all the costs associated with procuring an item.

TOTAL COST OF OWNERSHIP (TCO)

A structured approach to calculating the full costs associated with buying and using an asset or acquisition over its entire life cycle.

TOTAL COSTS

The total amount of costs spent, including fixed, variable, direct and indirect costs.

TOTAL QUALITY MANAGEMENT (TQM)

Efforts of all departments within an organization to improve processes, products and services.

TRADE BODY

An organization that represents and works for a particular group of individuals or companies, with a specific industry focus, is usually funded by them.

TRAFFIC

Visits or clicks on a website.

TRANSCENDENTAL

Pre-supposed and beyond practically gained experience.

TRANSFORMATIONAL STEP CHANGE

An organizational change that is significant and carried out over a period of time.

TRANSPARENCY

Operating in such a way that everyone can see the actions performed.

TRUCKLOAD (TL)

1. A quantity of freight to which truckload rates apply or a shipment tendered as a truckload.
2. A highway truck or trailer loaded to its carrying capacity. See Less-Than-Truckload.

TURNOVER

The amount of money taken by a business in a particular period.

Unleash procurement possibilities.

Whether you’re looking to maximize diversity spend, optimize supplier diversification, or identify emergency sourcing options, the best available supplier data makes all the difference.

Learn More
man