The Parsimoney vocabulary.

Canonical definitions used across the Parsimoney™ Method: cost resilience, pricing drift, competitive tension, LEAP, the Four Decisions and more.

Parsimoney™

A practical commercial discipline for keeping supplier decisions aligned with current market reality.

Cost resilience

The organizational ability to keep supplier costs and value aligned as markets, usage and relationships change.

Pricing drift

The gradual movement of supplier cost or value away from current market reality after an agreement is signed.

Competitive tension

The credible possibility of alternatives that keeps supplier pricing and behaviour responsive.

Live market signal

Current evidence produced by real supplier or competitor behaviour, not simply historical benchmark data.

LEAP

Lowest Easily Attainable Price: the lowest price an organization can credibly reach under its actual scope, timing, risk, leverage and alternatives.

Four Decisions

Rebid, renegotiate, replace or deliberately do nothing.

Commercial confidence

The ability to explain and defend a supplier decision using current evidence, clear thresholds and a known course of action.

Decision architecture

The criteria, thresholds and governance used to decide what action a supplier relationship deserves.

Parsimoney Method

The operating cycle: understand the market, understand LEAP, choose the right action, build cost resilience and repeat.

These terms appear throughout the Parsimoney Principles.