Trade Promotion is a marketing technique aimed at increasing demand for products in retail stores based on special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation gifts, and more. Omni-channel means establishing a presence on several channels and platforms (i.e. Usually implemented by high-end retailers and lifestyle brands, prestige pricing is a strategy in which an item is priced at a high level in order to denote exclusivity, high quality, or luxury. In retail, this means letting customers select and pay for goods themselves, without requiring the assistance of a live staff member. A long-term approach, that seeks to make small changes in processes to improve quality and efficiency, KanbanA production method where instructions are sent from one operation to the next on a card, including specific items and quantities. Cost centreArea of the business or budget to which the purchase needs charging, Cost driverAnything that means the cost of a good or service will change, Cost of goods sold (COGS)The direct costs for producing goods, i.e. The first sector covers farming and raw materials, the second is manufacturing and the third covers the production and delivery of services, SharesThe means by which a business is apportioned among its owners, ShiftA change in either the quantity supplied, or the quantity demanded while the price remains the same, Shipping addressThe address to which deliveries are to be sent, Shop floorWithin manufacturing, the area where the goods are made, Signed offA process of approving a sample so that orders can be placed or produced, Silo thinkingWhen people within a department do not share their knowledge or ideas with others outside the department, Single administrative document (SAD)A standardised customs form used to control goods being moved in and out of the EU, Switzerland, Norway, Iceland, Turkey, Macedonia and Serbia, Slotting (or profiling)The process of identifying the most efficient placement for each item in a warehouse, Small- and medium-sized enterprise (SME)A small- or medium-sized enterprise that is independent of other companies and is defined in terms of the number of employees it has, SMARTSMART objectives are: Specific, Measurable, Achievable, Realistic, and Time bound, Social sustainabilityThe impact a business can have on people and communities and actions to make this a positive impact, Soft skillsSkills that may be taught but are more likely to develop with time and practice, for example, team working and good communication, SoftwareProgrammed code that makes computers (hardware) operate, Sole traderSomeone who has exclusive ownership of a business and can keep any surplus profits but is responsible for any losses, SpecificationA detailed description of what is required, Spend analyticsGathering, cleansing, classifying and assessing spend data, with the aim of making efficiencies and reducing costs, Spot buyingOne-off purchases or immediate requirements, common in domestic buying, Staged pricingPayment split into instalments across the period of the contract, Staggered deliveryThis is where a full order is broken down into smaller loads and delivered against a schedule, e.g., 40% delivered in Month 1, 60% delivered in Month 2, StakeholderAnyone with an interest, or stake, in the organisation or project, Standard deviationA statistical measure that captures the difference between the average and the outliers in a set of data, Standing ordersDocument setting out the internal rules of an organisation, StatutoryAn action that is required by and controlled by law, StewardshipCare and responsibility for minimizing a product’s environmental impact throughout all stages of the product life cycle, including end of life management, StockGoods, products or materials held for future use or supply, often called inventory, Stock keeping unit (SKU)An identification code for an item of inventory, usually displayed as a bar code linked to a database, StockoutWhen an inventory item is unavailable, StocktakeThe process of physically counting products in a warehouse to match them to the computerized inventory, Strategic business decisionsLong-term decisions often made by senior management which affect the future and direction of an organisation, Strategic coreA category of a buyer’s portfolio in which items have major consequences for the company if they are not available when needed, Strategic planA document that includes details of the organisation’s goals and the actions to be taken to achieve them, Strategic procurementThe practice of focusing on building long-term relationships with suppliers that could lead to a source of competitive advantage, StrategicHigh-level planning, usually related to long-term goals, SubjectiveIn the context of data, something is subjective if it is a matter of opinion, which may differ from one person to another, SubstitutesGoods which, as a result of changed conditions, may replace each other in the market, Subtract or outsourceTo employ another organisation to fulfil a contract or part of a contract, Supplier inspectionA way of testing a supplier’s product or service to confirm compliance with the standard set by the organisation, Supplier rankingA priority order of suppliers that can be used for sourcing, Supplier relationship management (SRM)Process for identifying all interactions with key suppliers and then managing them in a way that increases the value from the relationship for both parties, Supplier relationship manager (SRM)The role responsible for developing and maintaining supplier relationships, SupplyHow much or how many of a product or service an organisation has to sell, or, the act of physically getting something from the supplier to the buyer, Supply chainA network of individuals, organisations, technology, activities and resources working together to make sure goods or services reach the end user, SustainabilitySupporting future ecological balance by not harming the environment or depleting natural resources, Sustainability development goals (SDG)17 goals introduced by the United Nations General Assembly to achieve a better and more sustainable future for all, SustainablyIn a way that avoids the destruction of nature and helps to keep a good ecological balance, SynchronisationThe process of precisely co-ordinating or matching two or more activities, devices or processes in time, System-generated reference numberA reference number automatically assigned to a record in a computer system, SystemicAn attribute that applies to a whole system rather than one particular part of it, Tall structureAlso known as a hierarchical structure and based on a pyramid – every staff member has somebody to report to, TangibleSomething you can physically see or touch, Target audiencePeople or organisations at which products such as a film, advertisement or website is aimed, TariffA tax paid on a particular type of import or export, Technical (or conformance) specificationThe set of standards that a requirement must meet or exceed, Technology chasmThe gap between the early adopters and larger market segments such as early majority in a product life cycle, TelematicsInformation technology dealing with the long-distance transmission of computerised information, TenderA request from a buying organisation to invite suppliers to formally quote on a large value project, Term contractsContracts written to last a period of time and include agreed terms, Tertiary sectorThe third stage of the production and manufacturing process, where a service is delivered in industries, e.g., banking, communications and marketing, TestimonialA formal statement from a customer giving feedback about the product, service or company and often used for promotional purposes, The Carbon TrustAn independent, expert partner of leading organisations around the world, helping them contribute to and benefit from a more sustainable future through carbon reduction, resource efficiency strategies and commercialising low carbon technologies, The Greenhouse Gas Protocol (GHG Protocol) Corporate StandardThe most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions, Third-party auditAn inspection of an organisation by an independent company or body, Third-party logistics (3PL)The use of third-party businesses to outsource part or all of an organisation’s fulfilment, logistics, transport, warehousing or distribution, Third-sector organisations (TSOs)Not-for-profit, non-governmental organisations run with the aim of achieving social goals, such as charities or community groups, ThresholdIn the procurement context, an upper limit to the amount a contract may cost without certain legal requirements coming into force, ToolingCutting tools, moulds, fixtures of accessories needed on a machine to manufacture a product, Total cost approachAn 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 costsThe total amount of costs spent, including fixed, variable, direct and indirect costs, Total quality management (TQM)Efforts of all departments within an organisation to improve processes, products and services, Trade bodyAn organisation that represents and works for a particular group of individuals or companies, with a specific industry focus, is usually funded by them, TranscendentalPre-supposed and beyond practically gained experience, Transformational step changeAn organisational change that is significant and carried out over a period of time, TransparencyOperating in such a way that everyone can see the actions performed, TurnoverThe amount of money taken by a business in a particular period, UnambiguousClear and not open to interpretation, Unincorporated companyA company in which there is no legal distinction between the company and its owner, UnionA group of workers joined together in a specific type of organisation for the purpose of improving working conditions, Unit loadA standard unit that combines individual items to ensure easy and efficient handling, Up-skillIncrease the ability of an individual through training and personal development, Upstream environmental factorsImpacts on the environment caused by the extraction of raw materials or the manufacture of goods being purchased, Value added tax (VAT)An indirect tax collected by sellers at every stage in the supply chain, based on the value added at each stage of a product’s or service’s production or distribution, Value propositionsThe attributes of a product or service that makes it attractive to customers, Variable costsCosts that change with the output of the organisation, Variant bidA tender offer that does not quite match the specification of contract terms, but has been authorised as a secondary offer from a supplier. Select a letter from the index below to see the glossary items beginning with that letter. According to IBM’s report, Macy’s combines customer preferences with recent purchase data to deliver “dynamically customized recommendations (such as a complementary clothing accessory or color) or personalized promotions.” Macy’s implements this across multiple channels (i.e. This term refers to the practice of selling only to a specific market segment. Downloadable monthly sales report templates - in both .pdf and .xls form - to help with conducting professional reports. Once they’re inside, the retailer counts on the customer to buy other things together with the loss leader, thus generating profits for the business. This term refers to retailers that integrate their brick and mortar store with their ecommerce site. After that, they scoot away to make room for new events.”. When you’re dealing with Big Data, you’re not just looking at traffic or conversions; you’re analyzing behavior (clicks, open rates, time spent on site), demographic (Census information, income), social information (tweets, shares, etc. This is a visual representation that shows how merchandise should be arranged on store shelves in order to drive more sales. It’s important to note that omni-channel goes beyond simply being on multiple channels or platforms. ... back office the part of a firm that is responsible for post-trade activities. Beacons can also be used for in-store analytics purposes. A good example of a niche retailer is Sunglass Hut, a popular retail chain that specializes in selling sunglasses. The nineteenth-century slave trade was protected by law, and it utilized fugitive slave laws, slave patrols, and the courts to promote and maintain the institution. On top of that, the retailer also factors in social engagement such as blogs and gift registries to further connect with its customers. The name, logo, slogan, colours, etc., that differentiate it from the competition, Break evenThe point at which a business recovers what it has spent and starts to make a profit, BudgetFinancial plan for a set period of time on how much can be spent, Buffer stockAmount of stock held in stores at any time in addition to actual requirements, Business-criticalA supply or service without which the business could not operate, Business-to-business (B2B)A transaction between businesses (e.g., in the supply chain), Business-to-customer (B2C)A transaction between a business and the end user of its product or service (e.g., an individual shopper), Business caseA justification for a proposed project or undertaking on the basis of its expected benefits, Business cycleThe rise and fall over time of output in an economy as measured by gross domestic product (GDP), Buyer’s viewThe buyer’s perspective on a supply market and the suppliers and products in it, BuyingThe physical act of placing orders to make a purchase, Buy inWhen people believe and support an idea, CADComputer aided design – drawings created using software, Call-off scheduleA schedule produced to state what amounts of products are to be delivered when, CapitalThe amount of money or assets available to be leveraged by a person or organisation, e.g., when starting a company, or buying an asset such as machinery, Capital costsLarge, fixed, one-off expenses incurred in getting a business or process operational, Capital purchaseThe purchase of an item that is a long-term asset such as a building or equipment, Carbon Disclosure Project (CDP)An organisation working with companies and cities to disclose the environmental impact of major corporations in the interest of fighting climate change, CartelA group of companies claiming to act independently, but actually acting together to control prices by price-fixing, limiting supply or other restrictive practices, Cashable savingsSavings that has no impact on the product or service quality but which result in a sustainable reduction in the budget for purchases of that item, Cash flow statementAn accounting document that summarises the incomings and outgoings of cash in an organisation, Cash flowThe amount of money moving in and out of a business in a particular period, CatalogueA list of items for sale that often contains descriptions, pictures, prices and availability, CategoryA group of goods or services that have shared characteristics, Category awareUnderstanding the market and risks associated with a particular commodity or service, Certificate of origin (COO)A document required by customs officials, identifying the country of origin of imported goods, and certified by the supplier’s country’s designated authority, to authenticate the source of the goods, ChannelThe way products and services get to the customer, Chemical processA process in which chemicals or chemical compounds are changed with the help of chemical reactions, Chief executive officer (CEO)The most senior person in an organisation, with overall responsibility for its success, Chief procurement officer (CPO)Chief procurement officer or procurement and supply director – the person with overall responsibility for procurement and supply within an organisation, Climate proofingIdentifying risks to an asset, as a consequence of climate variability and change, and ensuring that those risks are reduced to acceptable levels by making changes, Closed systemA system or process that, once started, does not allow new entrants. 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