Procurement glossary
Plain-English definitions of 832 procurement terms.
- 1PL Logistics
- 2PL Logistics
- 3PL Logistics
- 4PL Logistics
- 5PL Logistics
- Absorption Costing
- Acceptable Quality Limit
- Acceptance
- Acceptance Sampling
- Acceptance Testing
- Account Manager
- Accounting Period
- Accounting Rate of Return
- Accounts Payable
- Accounts Receivable
- Accrual Accounting
- Acknowledgement
- Acquisition
- Acquisition Cost
- Acquittal
- Act of God
- Activity Based Costing
- Activity, Non Value Adding
- Ad Valorem
- Added value
- ADR
- Advice Note
- Agency
- Aggregation
- Agility
- Agreement
- Air Waybill
- Airtime
- Alignment
- Alliance
- Alliance, Strategic
- Allocated Stock
- Allocation
- Alpha Numeric Coding Schemes
- Alternative Dispute Resolution
- Analysis
- Appraisal cost
- Appraisal, Supplier
- Approval
- Approved List
- Arbitrage
- Arbitration
- Arm’s Length Relationship
- ARR
- Assemble to Order
- Asset
- Asset Specificity
- Asset, Current
- Asset, Fixed
- Asset, Intangible
- Asset, Tangible
- Assignment
- Auction
- Auction, Dutch
- Audit
- Available Stock
- Average Rate of Return
- Back Door Selling
- Back Order
- Backhaul
- Backlog
- Backward Integration
- BAFO
- Balance Sheet
- Balanced Scorecard
- Barcode
- Bargaining
- Barter
- Baseline
- Batch
- BATNA
- Battle of the Forms
- BAU
- Benchmarking
- Benefits
- Benefits Realisation Plan
- Best Alternative to a Negotiated Agreement
- Best and Final Offer
- Best in Class
- Best Practice
- Best Value
- Bid
- Bid Analysis
- Bid Rigging
- Bid Rotation
- Bid Suppression
- Bidder, Unsuccessful
- Bidding, Competitive
- Bidding, Two Stage
- Bilateral Contract
- Bill of Lading
- Bill of Materials
- Blanket Order
- Blanket Release
- Boilerplate Clause
- Bond
- Bonded Warehouse
- BOOM Contract
- BOOT Contract
- Bottleneck
- BPO
- Breach of Contract
- Break Bulk
- Broker
- Budget
- Budgeting, Zero Based
- Buffer Stock
- Bulk Freight
- Bullwhip Effect
- Business as Usual
- Business Case
- Business Function, UNSPSC
- Business Process Outsourcing
- Buyback
- Buyer
- Buyer’s Market
- Cabotage
- Capability
- Capacity
- CAPEX
- Capital Equipment
- Carbon
- Carbon Credit
- Carbon Footprint
- Carbon Neutral
- Carbon Offset
- Carbon Tax and Trading
- Carrying Cost
- Cartel
- Category
- Category Analysis
- Category Management
- Category manager
- Centralisation
- Certificate of Origin
- CFR
- Chaebol
- Change Management
- Change Order
- CIF
- CIP
- Claim
- CLAN
- Clarification
- Class, UNSPSC
- Clause, Boilerplate
- Client Furnished Equipment
- Close Out
- Code of Conduct
- Coding Systems
- Coercion
- Collusion
- Commercially sensitive information
- Commodities Exchange
- Commodity
- Commodity, UNSPSC
- Competence
- Competition
- Competition and Consumer Act 2010
- Competition, Imperfect
- Competitive Bidding
- Compliance
- Compromise
- Condition
- Conditioning
- Conflict Resolution
- Consideration
- Consignment Stock
- Consolidator
- Consumable
- Container
- Contingency
- Contingency Planning
- Contra Deal
- Contract
- Contract governance groups
- Contract management
- Contract metrics
- Contract Owner
- Contract price
- Contract scope
- Contract Types
- Contract, Bilateral
- Contract, BOOM
- Contract, BOOT
- Contract, Futures
- Contract, Hire
- Contract, Open Book
- Contract, Performance Based
- Contract, Scorecard
- Contract, Termination of
- Contract, Time and Materials
- Contract, Turnkey
- Contract, Unenforceable
- Contract, Unilateral
- Contracting, Traditional
- Contractual Term
- Cooperation
- Copyright
- Corporate Social Responsibility
- Corrective Action
- Cost
- Cost Avoidance
- Cost Base
- Cost Benefit Analysis
- Cost Down
- Cost Driver
- Cost Leadership
- Cost of Capital
- Cost of Goods Sold
- Cost Out
- Cost Plus
- Cost to Serve
- Cost, Acquisition
- Cost, Fixed
- Cost, Marginal
- Cost, Opportunity
- Cost, Reimbursable
- Cost, Semi-variable
- Cost, Variable
- Cost-effective suppliers
- Costing, Absorption
- Costing, Activity Based
- Cost-saving levers
- Counter Offer
- Countertrade
- CPT
- Criteria
- Cross Docking
- Cross Functional Team
- Culture
- Current Asset
- Current Liabilities
- Customer, Preferred
- Customisation, Late
- Cycle Time
- Damages
- Damages, Liquidated
- Damages, Unliquidated
- Dangerous Goods
- DAP
- DAT
- Data
- Deadheading
- Decentralisation
- Default Notice
- Deflation
- Delayering
- Delegated Financial Authority
- Delivery
- Delivery In Full and On Time
- Demand Forecasting
- Demand Management
- Demand Pull
- Demurrage
- Design and Construct
- Detailed Specification
- DIFOT
- Digital procurement system
- Direct Materials
- Disaster Recovery
- Discount
- Discounted Cash Flow
- Disintermediation
- Dispute Resolution
- Distorted Market
- Distribution
- DMAIC
- Dock Leveller
- Downstream
- Downtime
- Duress
- EAN
- Early Procurement Involvement
- Early Supplier Involvement
- Earnings per Share
- e-Commerce
- Economic Order Quantity
- Economic Value Added
- Economies of Scale
- ECR
- EDI
- Efficient Consumer Response
- Electronic Data Interchange
- Electronic Supply Chain
- e-Marketplace
- Emotional Intelligence
- Engineer, Procure and Construct
- Engineer, Procure, Install and Commission
- Engineer, Procure, Install, Commission, Operate and Maintain
- Engineering, Procurement and Construction Management
- Enquiry
- Enterprise Resource Planning
- Entry Barriers
- Environment
- EOQ
- EPC
- EPCM
- EPIC
- EPICOM
- e-Procurement
- Equipment, Capital
- Equipment, Client Furnished
- Equivalent capability
- ERP
- Escalation
- Estoppel
- Ethics
- European Article Number
- Evaluation
- Evaluation, Technical
- Evaluation, Tender
- Exchange Rate
- Exclusivity
- Expediting
- Expendable
- Expenditure, Capital
- Experience Curve
- Explicit Knowledge
- Expression of Interest
- EXW
- Facilitation
- Failure Mode and Effects Analysis
- Family, UNSPSC
- FAS
- FCA
- FCL
- Federal Structure
- Feedback
- FIFO
- First In, First Out
- Fit for Purpose
- Five Forces Analysis
- Five Rights
- Fixed Cost
- Fixed Price
- Fly In, Fly Out
- FMEA
- FOB
- Formula Pricing
- Forrester Effect
- Forward Buying
- Forward Commitment Procurement
- Freight Forwarder
- Full Container Load
- Functional Specification
- Futures Contract
- Gain Sharing
- Game Theory
- Gatekeeper
- Globalisation
- Goods, Dangerous
- Goods, Unascertained
- Governance
- Greenhouse Gases
- Greenwash
- Hazardous Purchases
- Hazchem
- Hedging
- High value critical contract
- Hire Contract
- Hire Purchase
- IMF
- Imperfect Competition
- Implied Term
- Inbound Logistics
- Incentive Bonus
- Incentives
- Incoterms
- Incumbent
- Indemnity
- Indicators
- Indirect Materials
- Inflation
- Influencing
- Information
- Innovation
- Input Specification
- Insourcing
- Insurance
- Insurances certificates
- Integration, Backward
- Integration, Vertical
- Intellectual Property
- Intermediary
- Intermodal Freight Containers
- International Article Number
- Inventory
- Inventory Carrying Cost
- Inventory Control
- Inventory, Vendor Managed
- Inventory, Zero
- Investment Appraisal
- Invitation to Offer
- Invitation to Treat
- Invoice
- Invoice, Recipient Generated
- ITO
- Joint Venture
- Just in Time
- Kaizen
- Keiretsu
- Key Account Manager
- Key Performance Indicator
- Knowledge
- Knowledge, Explicit
- Knowledge, Tacit
- KPI
- Lagging Indicators
- Last In, First Out
- LCL
- Lead Time
- Leading Indicators
- Lean Manufacturing
- Lean Supply
- Lean Thinking
- Learning Curve
- Lease, Finance
- Lease, Operating
- Leasing
- Less than Container Load
- Letter of Credit
- Letter of Intent
- Leverage
- Liabilities, Current
- Liability
- Licensing
- Life Cycle, Product
- LIFO
- Liquidated damages
- Logic
- Logistics
- Logistics, Inbound
- Logistics, Outbound
- Logistics, Pull
- Logistics, Push
- Logistics, Reverse
- Lot Size
- Low Cost Country Sourcing
- Low Value Purchases
- Lump Sum
- Maintenance, Routine, Operating Categories
- Make or Buy
- Make to Order
- Make to Stock
- Managing Contractor
- Manifest
- Manufacturing Resource Planning
- Marginal Cost
- Market Analysis
- Market Concentration
- Market Distortion
- Market Engagement
- Market Failure
- Market Maker
- Market Sharing
- Market Structure
- Market Testing
- Market, Life Cycle
- Marketing
- Marketing, Reverse
- Materials Requirements Planning
- Materials Safety Data Sheet
- Materials, Direct
- Materials, Indirect
- Matrix Structure
- Maverick Purchasing
- Mean Time Before Failure
- Mean Time Before Unscheduled Removal
- Measurement of Benefits
- Measurement of Supplier Performance
- Merchantable Quality
- Metric
- Milestone
- Minimum service level
- Minor contract clause
- Misrepresentation
- Monopoly
- MRP
- MSDS
- MTBF
- MTBUR
- MTO
- MTS
- Muda
- Multi-dimensional KPIs
- Negotiation
- Negotiation Planning
- Negotiation, Post Offer
- Net Present Value
- Networking
- Noise
- NPV
- Number, European Article
- Objective, Negotiation
- Obsolescence
- Offer
- Offset
- Offshoring
- Oligopoly
- Online Catalogue
- Open Book Contract
- Opportunism
- Opportunity Analysis
- Opportunity Cost
- Order Acknowledgment
- Order, Cost of Raising
- Order, Purchase
- Outbound Logistics
- Output Specification
- Outsourcing
- Overhead Allocation
- Overhead Recovery
- Packaging Covenant
- Panel Arrangement
- Pareto Principle
- Partner
- Partnering
- Partnership
- Patent
- Payment Profile
- Penalty Clause
- Penetration Pricing
- Performance Based Contract
- Performance Bond
- Performance Indicators
- Performance Regime
- Performance Review
- Performance Specification
- Persuasion
- PEST Analysis
- Pipeline Stock
- Planning, Negotiation
- Planning, Procurement
- Porter's Five Forces
- Portfolio Analysis
- Post Offer Negotiation
- Power Users
- Preferred Customer
- Preferred Supplier
- Pre-qualification
- Price
- Price Fixing
- Price Taker / Price Maker
- Price Variation Formula
- Price, Fixed
- Pricing Strategy
- Pricing, Zero Based
- Probity
- Procurement
- Procurement Card
- Procurement Controls
- Procurement Planning,
- Profit
- Profit and Loss Statement
- Profit, Price and Cost Analysis
- Proposal
- Public Private Partnership
- Puffery
- Pull Logistics
- Purchase Order
- Purchase orders
- Purchase to pay system
- Purchases, Hazardous
- Purchasing
- Purchasing Card
- Push Logistics
- Quality
- Quality, Acceptable
- Question, Closed
- Question, Hypothetical
- Question, Leading
- Question, Open
- Question, Probing
- Questions, Multiple
- Quid Pro Quo
- Quotation
- RACI
- Radio-Frequency Identification
- Rate changes
- Ratio Analysis
- Ratio, Current
- Ratio, Liquidity
- Ratio, Management
- Ratio, Profitability
- Ratio, Solvency
- Rationalisation
- Rebate
- Receipt
- Receipt process
- Recipient Generated Invoice
- Reciprocal Trade
- Recycling
- Relationship, Commercial
- Remuneration
- Rental
- Reorder Level
- Repairable Part
- Representations, Pre-contractual
- Request for Information
- Request for Proposal
- Request for Quotation
- Request for Tender
- Requisition
- Residual risk
- Responsive Supply Chain
- Retendering
- Return on Capital
- Return on Investment
- Return on Net Assets
- Reverse Logistics
- Reverse Marketing
- RFI
- RFID
- RFP
- RFQ
- RFT
- RFx
- Risk
- Risk and Reward
- Risk management framework
- Road Map
- ROI
- Root Cause
- Root cause analysis
- Rotable Part
- Sanctions
- Savings
- Scenario Planning
- Schedule of Rates
- Scope creep
- Scope of Work
- Segment, UNSPSC
- Segmentation
- Selling, ‘Back door’
- Service Level
- Service Level Agreement
- Service standards
- Should-Cost Analysis
- Show Cause
- Six Sigma
- Small and Medium Sized Enterprises
- SME
- Social Enterprise
- Socially Responsible Procurement
- Sourcing
- Sourcing event
- Sourcing Strategy
- Specification
- Specification, Functional
- Specification, Input
- Specification, Performance
- Specification, Technical
- Specifications
- Spend Analysis
- Spend Cube
- Spend Leakage
- Spot Buying
- Stakeholder
- Stakeholder Analysis
- Stakeholder Management
- Standards
- Statement of Work
- Stock
- Stock Check
- Stock Control
- Stock Location
- Stock Turn
- Stock, Allocated
- Stock, Available
- Stock, Buffer
- Stock, Carrying Cost
- Stock, Consignment
- Stock, Pipeline
- Stock, Safety
- Strategy
- Structure
- Structure, Federal
- Structure, Organisational
- Structure, Work Breakdown
- Subject Matter Expert
- Substitution
- Superintendent
- Supplier
- Supplier Appraisal
- Supplier Development
- Supplier Evaluation
- Supplier Rationalisation
- Supplier Relationship Management
- Supplier Tiering
- Supplier Visit
- Supplier, Preferred
- Supplier's delivery team
- Supply Base Management
- Supply Base Reduction
- Supply Chain
- Supply Chain Management
- Sustainability
- Tacit Knowledge
- Tactics
- Take or Pay
- Tally
- Target
- Target Costing
- Target Inventory Level
- Target service level
- Target, Ideal
- Target, Just Accept
- Target, Realistic
- Tariff
- Team
- Team Charter
- Team, Cross Functional
- Technical Evaluation
- Technical Specification
- Tender
- Tender Bond
- Tender Evaluation
- Term, Implied
- Term, Promissory
- Termination for Convenience
- Termination of Contract
- Terms and Conditions
- Terms of Payment
- test
- Three Way Match
- Tiering Suppliers
- Time and Materials Contract
- Time Compression
- Title
- Total Absorption Costing
- Total cost models
- Total cost of opportunity
- Total cost of ownership
- Trade Discount
- Trade Mark
- Trade Practices Act
- Trade Terms
- Traditional Contracting
- Traditional risk matrix
- Training
- Transaction Cost Economics
- Transaction Costs
- Transformation
- Triple Bottom Line
- Trust
- Turn Around Time
- Turnkey Contract Model
- Two Stage Bidding
- Two Way Match
- Uberrimae fidei
- Ullage
- Ultimate Consumer
- Ultra vires
- Unascertained Goods
- Unauthorised
- Uncertainty
- Under Seal
- Unenforceable Contract
- Uniform Freight Classification
- Unilateral Contract
- Unit Load
- Unit of Measure
- Unit of Purchase
- Unit of Sale
- Unit Rate
- Unitisation
- Unliquidated Damages
- UNSPSC
- Unsuccessful Bidder
- Upstream
- Uptime
- Usage
- User complaints
- Utilisation
- Utility
- Validity
- Value
- Value Added
- Value Adds
- Value Analysis
- Value Chain
- Value Creation
- Value Engineering
- Value for Money
- Variable
- Variable Cost
- Variance
- Variation
- Variety Reduction
- Vendor
- Vendor Managed Inventory
- Vendor master data
- Vendor Rating
- Vertical Integration
- Void Agreement
- Volume Discount
- Volume Price Agreement
- Vulnerability
- Wait Time
- Waiver
- Walk Away Point
- Warehouse
- Warehouse, Bonded
- Warranty
- Waste
- Waybill
- Weighted Average Cost of Capital
- Weighted Factor Analysis
- Wet Lease
- Whole of Life Costing
- Wholesaler
- Win:Win
- Without Prejudice
- Work Breakdown Structure
- Work in Progress
- Work Instruction
- Work Order
- Write Down
- Yield
- Yield Management
- Zero Based Budgeting
- Zero Based Pricing
- Zero Defects
- Zero Inventory
- Zero Sum Game
- Zone