External factors beyond an organization’s control that will influence its success, such as government policy, technology, and social and cultural factors.
Where an item is produced specifically to go into stock, for later sale.
A decision about what products or services an organization will manufacture or provide themselves in-house, and which will be purchased from outside sources.
The transport or support of any load by one or more employees, including lifting, putting down, pushing, pulling, carrying or moving a load.
A computer-based inventory management system that combines all available strategic and planning data to support inventory forecasting.
Where buyers meet sellers to trade products and services. This can relate to a specific location or to the general economic environment.
This helps procurement professionals to understand how the supply market works, the direction that the market is going in, the level of competition and the key suppliers in the market.
Elements that influence the demand for, or the price of, a good or service.
A detailed understanding of the influences, activities and trends in the market for a particular product or service (also known as category knowledge).
The amount that customers are charged, depending on supply and demand for the products or services.
This usually means that there is more than enough supplier capacity to meet customer demand.
A group of consumers with common characteristics that are grouped together for the purpose of marketing a product or service.
A plan that a company has produced for the purposes of scheduling machinery, staffing, resourcing, etc., that is used to ensure smooth, continuous productions.
Tangible items that are required to carry out an organization’s activities, such as tools, machinery, staff and buildings.
An electronic system used to plan production which includes scheduling orders, monitoring inventory and managing the production process.
The part of the procurement process that makes sure organizations have the materials they need to operate.
Where local staff ignore existing contractual arrangements and purchase from other suppliers. This may be for fraudulent reasons, but most often it is simply because they believe they can get a better deal and do not understand the overall impact on the business.
Another name for the average. The mean is calculated by adding all of the values together, then dividing by the number of values.
A plan or procedure that details how a process or task will be carried out.
The expansion of SME to include microbusinesses, which are usually defined as having fewer than ten employees.
Factors that directly influence an organization’s success, such as competitors, suppliers, employees and customers.
A group of consumers who buy or use a new product or technology after seeing it used successfully by innovators and early adopters.
Important stages or events within a process.
A limited tender exercise, usually only on price, under the rules set out in a framework agreement; only suppliers appointed to the framework are able to take part.
The smallest amount of a product a buyer can order from the supplier.
Minority group members are United States citizens who are Asian-Indian, Asian-Pacific, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals (i.e., the management and daily operations are controlled by those minority group members).
A written record of a meeting, stating when it took place, who was present, what was discussed and what actions have been agreed.
Short statement setting out an organization’s purpose.
An action that reduces the severity of an outcome.
This is where a vehicle contains more than one type of product.
When a contract shifts from one supplier to another.
A publication approved by the American Bar Association which sets forth procurement statutory principles and policy guidelines for managing and controlling the procurement of supplies, services and construction for public purposes; administrative and judicial remedies for the resolution of controversies relating to public contracts; and a set of ethical standards governing public and private participants in the procurement process
The act of forcing people to work in poor conditions for little or no money.
A situation in a market where one organization controls the supply of goods or services, and new entrants find it difficult to enter the market.
A market with only one buyer.
Paid work from a second job that is done without a main employer’s consent.
A shift in demand or supply, or price.
Organizations that have facilities and assets in more than one country.
An exchange agreement between more than two nations or trading groups that gives each group favored trade status connected to certain goods obtained from the signatories.
In or using several different languages.
Contracts awarded to more than one supplier for comparable supplies and services. Awards are made for the same generic types of items at various prices.
Whether you’re looking to maximize diversity spend, optimize supplier diversification, or identify emergency sourcing options, the best available supplier data makes all the difference.Learn More