| Annual spend: | The amount of money an organization spends with its suppliers annually.
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| Lean purchasing or lean supply management: | refers primarily to a manufacturing context and the implementation of just-in-time (JIT) tools and techniques to ensure every step in the supply process adds value, that inventories are kept at a minimum level, and that distances and delays between process steps are kept as short as possible.
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| Logistics management: | According to the Council of Supply Chain Management Professionals, "Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements."
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| Operational role of supply: | the transactional, day-to-day operations traditionally associated with purchasing; characterized as trouble avoidance.
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| Profit-leverage effect | of supply savings is measured by the increase in profit obtained by a decrease in purchase spend.
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| Purchasing, supply management, and procurement: | are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization.
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| Return on assets (ROA): | A profitability ratio used to measure how hard the assets of an organization are working. ROA is calculated by dividing the net income by total assets.
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| Strategic role of supply: | focuses on new and better solutions to organizational and supply challenges; characterized as opportunistic.
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| Strategic sourcing: | focuses on long-term supplier relationships and commodity plans with the objectives of identifying opportunities in areas such as cost reductions, new technology advancements and supply market trends.
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| Supply chain management: | "The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration." (ISM definition, www.ism.ws)
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| Value chain: | tracing the various moves and transformations of a product or service and identifying the costs added at each successive stage. Also called supply network or supply web.
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