| Center-led supply organization: | a type of hybrid structure in which strategic direction is centralized and execution is decentralized.
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| Centralized: | the authority and responsibility for most supply-related functions are assigned to a central organization.
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| Chief purchasing officer (CPO) or chief supply officer (CSO): | the "most senior" or "top level" executive in a firm's corporate (executive level) office or major division, such as a strategic business unit (SBU), who has formal authority and responsibility to manage purchasing, buying or sourcing functions for the procurement of goods and services from external suppliers.
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| Commodity management teams: | formed when expenditures are high and the commodity is complex and important to success; generally permanent teams.
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| Cross-functional supply teams: | consist of personnel from multiple functions focused on a supply-related task.
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| Decentralized supply structure: | authority and responsibility for supply-related functions are dispersed throughout the organization.
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| Direct spend: | any goods that go into the end product.
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| Hybrid supply organization: | authority and responsibility are shared between a central supply organization and business units, divisions, or operating plants.
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| Indirect spend: | goods and services that are needed to run the organization, such as professional services, utilities, travel, employee benefits, and office supplies.
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| Nontraditional purchases: | spend categories that have typically been managed outside of the supply management process, including capital equipment, utilities, insurance, computers and software, travel, real estate, and construction services.
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| Purchasing consortia: | a form of collaborative purchasing used by both public and private sector organizations to deliver a wider range of services at a lower total cost.
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| Seven Rights (7Rs) of Purchasing: | obtain the right materials (meeting quality requirements), in the right quantity, for delivery at the right time and right place, from the right source (a supplier who is reliable and will meet its commitments in a timely fashion), with the right service (both before and after the sale), and at the right price in the short and long term.
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| Supplier councils: | usually consist of 10 to 15 senior executives from the company's preferred supplier base, along with six to eight of the buying firm's top management.
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| Supply councils: | generally comprised of senior supply staff and are established to facilitate coordination among the business units, divisions, or plants.
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