Glossary

OBJECTIVE

In the context of data, something is objective if it is pure fact, with no opinion or interpretation attached to it.

OBLIGATIONS

In terms of a contract, the actions that each party must carry out.

OBSOLESCENCE

The state of becoming discontinued, outdated or no longer useful.

OBSOLESCENT STOCK

Stock that is outdated and no longer useful.

OCCUPATIONAL HEALTH & SAFETY AGENCY (OHSA)

A USA governmental regulatory agency.

OFF-THE-SHELF

Goods or services that are readily available and not made to order.

OFFER

An invitation communicated by one party to another to enter into a legal contract.

OFFICERS

Positions appointed by the Board of Directors. Examples of officers are CEO (chief operating officer) and FO (financial officer).

OJEU

Official Journal of the European Union.

OLIGOPOLY

A market structure where a small number of competitors dominate the market.

OPEN ACCOUNT

This is an arrangement where the items are delivered before payment is due, for example, on credit terms such as 30 days.

OPEN MARKET REQUISITION (OMR)

The requisition document type used in MAPS Procurement to request the purchase of a non-contract item when the requested item’s estimated cost exceeds the authority for purchase level of the buyer. An OMR conveys the request for purchase to the person with the authority to purchase. The resulting order type is most often the Purchase Order Requisition (POR).

OPEN-BOOK CONTRACT

A contract in which both the purchaser and supplier share all financial information relating to the contract, including figures that would normally be considered commercially confidential.

OPENING STOCK

The amount, type and value of goods available for sale at the beginning of a set period.

OPERATING COSTS

Day-to-day expenses of running an organization, e.g., rent, salaries, transport costs, power and insurance.

OPERATING ENVIRONMENT

Everything external to the business that has an impact on how it operates. This will include regulations, social expectations, the economy, its relative position in the market, the competitiveness of the market, etc.

OPPORTUNITY COST

A benefit that could have accrued if a person had taken a different action.

OPTION TO EXTEND/RENEW

A provision (or exercise of a provision) which allows a continuance of the contract for an additional time according to permissible contractual conditions.

ORDERING SYSTEM

A method used to determine the size and timing of an organization’s orders.

ORGANISATION

A body that buys goods or services from a supplier.

ORGANIZATIONAL CULTURE

The shared values and beliefs that influence how people in an organization behave.

ORIGINAL EQUIPMENT MANUFACTURER (OEM)

A manufacturer that produces goods for another company to sell under their own branding, particularly computer and IT equipment.

OSCILLATING

An object that oscillates moves repeatedly from one position to another.

OSHA

The Occupational Safety and Health Administration. Created by the OSHA Act.

OUTCOME-FOCUSED SPECIFICATION

Type of performance specification that describes the functions or performance that a product must fulfil.

OUTPUT

The amount of goods or services an organization is producing or supplying.

OUTSOURCE

Contract another company to undertake a task or job.

OVER-SPEC’D (OVER-SPECIFIED)

Having a specification that is better than is required to be fit for purpose.

OVER-SUPPLY

Where more goods or services are available than there are buyers for them. This most often occurs in agriculture where the harvest may vary from year to year, depending on the weather, and the produce cannot be kept for a long time.

OVERDRAFT

A short-term agreement with a bank to lend money.