The recording of responses for the purposes of comparison, analysis and record keeping.
Tail spend is that spend for any firm, which is not actively managed in all the spend categories and may have an impact on the firm’s financial performance due to its impact on SG&A and COGS. It contains a small portion of the spend (10–20% under each spend category) but a large number of suppliers accounting for it.
Also known as a hierarchical structure and based on a pyramid – every staff member has somebody to report to.
Something you can physically see or touch.
People or organizations at which products such as a film, advertisement or website is aimed.
A certified business designated by the commissioner of Administration that is majority owned and operated by a woman, person with disabilities, or a member of a specific minority group who provides goods, products, or services within purchasing categories designated by the commissioner.
A tax paid on a particular type of import or export.
The set of standards that a requirement must meet or exceed.
The gap between the early adopters and larger market segments such as early majority in a product life cycle.
Information technology dealing with the long-distance transmission of computerized information.
A request from a buying organization to invite suppliers to formally quote on a large value project.
Contracts written to last a period of time and include agreed terms.
A phrase generally applied to the rules under which all bids must be submitted, and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors.
The third stage of the production and manufacturing process, where a service is delivered in industries, e.g., banking, communications and marketing.
A formal statement from a customer giving feedback about the product, service or company and often used for promotional purposes.
An independent, expert partner of leading organizations around the world, helping them contribute to and benefit from a more sustainable future through carbon reduction, resource efficiency strategies and commercializing low carbon technologies.
The most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.
An inspection of an organization by an independent company or body.
The use of third-party businesses to outsource part or all of an organization’s fulfilment, logistics, transport, warehousing or distribution.
Not-for-profit, non-governmental organizations run with the aim of achieving social goals, such as charities or community groups.
In the procurement context, an upper limit to the amount a contract may cost without certain legal requirements coming into force.
Tier 1 suppliers are manufacturers that deal directly with OEM companies. These are often major companies in their own right. You may recognize names like Bosch or BASF. Though Bosch is primarily a tier 1 supplier for the automotive industry, they’re also well known for their own power tool product lines.
While tier 1 suppliers are creating parts and equipment, they generally don’t make the pieces that make up those parts. For that, they turn to tier 2 suppliers. Tier 2 suppliers deal directly with the tier 1 suppliers, not the OEMs.
The instrument or document whereby ownership of property is established.
Cutting tools, molds, fixtures of accessories needed on a machine to manufacture a product.
A wrongful act, other than a breach of contract, such that the law permits compensation of damages.
An approach that considers all the costs associated with procuring an item.
A structured approach to calculating the full costs associated with buying and using an asset or acquisition over its entire life cycle.
The total amount of costs spent, including fixed, variable, direct and indirect costs.
Efforts of all departments within an organization to improve processes, products and services.
An organization that represents and works for a particular group of individuals or companies, with a specific industry focus, is usually funded by them.
Visits or clicks on a website.
Pre-supposed and beyond practically gained experience.
An organizational change that is significant and carried out over a period of time.
Operating in such a way that everyone can see the actions performed.
1. A quantity of freight to which truckload rates apply or a shipment tendered as a truckload.
2. A highway truck or trailer loaded to its carrying capacity. See Less-Than-Truckload.
The amount of money taken by a business in a particular period.
Clear and not open to interpretation.
A comprehensive modernization of various statutes relating to commercial transactions, including sales, lease, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, bulk sales, documents of title, investment securities and secured transactions. The Minnesota law is found in Minn. Stat. Ch. 336.
A company in which there is no legal distinction between the company and its owner.
A group of workers joined together in a specific type of organization for the purpose of improving working conditions.
A standard unit that combines individual items to ensure easy and efficient handling.
The price of a selected unit of a good or service (e.g., pound, labor hours, etc.).
A vendor whose response is not accepted for reasons such as price, quantity, failure to comply with specifications, etc.
Increase the ability of an individual through training and personal development.
Impacts on the environment caused by the extraction of raw materials or the manufacture of goods being purchased.
An indirect tax collected by sellers at every stage in the supply chain, based on the value added at each stage of a product’s or service’s production or distribution.
An organized effort directed at analyzing the function of systems, products, specifications, standards, practices, and procedures for the purpose of satisfying the required function at the lowest total cost of effective ownership consistent with the requirements for performance, reliability, quality and maintainability.
The attributes of a product or service that makes it attractive to customers.
Costs that change with the output of the organization.
A tender offer that does not quite match the specification of contract terms, but has been authorized as a secondary offer from a supplier. It is used to see if the proposed specification and contract terms can be improved upon via competitive offers and must be authorized by the purchaser as part of the invitation to tender.
Someone who sells something; a “seller.”
Vendor Master Data is the enterprise main source of vendor-specific data. It includes information on vendors from which a company can procure, or can sell. A vendor master record contains information such as vendor’s name, address, etc.
An agreement between an organization and a supplier where the supplier is given control of ordering (replenishment) decisions.
A list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. The list, maintained by the purchasing office, should include all suppliers who have expressed interest in doing business with the government.
Specialist companies that invest in businesses (particularly start-ups).
Using the spoken or written word to convey information, for example face-to-face or on the phone, reports, e-mails or posters.
When one organization in a supply chain moves into a different stage of that supply chain, either by starting its own business or by acquiring an existing one.
Is a small business that is at least 51% owned by one or more veterans or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more veterans.
A VBE is defined as a veteran who has served in the active military, naval or air services and who was discharged or released under conditions other than dishonorable. Active-duty service is defined as active duty in the United States Army, Air Force, Navy, Marine Corps, or Coast Guard for any length of time and at place home and abroad. A veteran or group of veterans must have 51% ownership and control of the business.
Breaching an agreement, policy or code of conduct.
A product that is made with 100 percent new raw materials and contains no recycled materials.
A statement describing the future desired state of the organization.
Compounds that evaporate easily at room temperature and often have a sharp smell. They can come from many products, such as office equipment, adhesives, carpeting, upholstery, paints, solvents, and cleaning products. Some VOCs can cause cancer in certain situations, especially when they are concentrated indoors. VOCs also create ozone, a harmful outdoor air pollutant.
Charge applied by a supplier if their specified waiting time to be offloaded is exceeded.
The process of assigning identity codes to picking locations based on various criteria such as unit sales, size or weight.
A promise made by the supplier to the buyer, in return for a monetary sum, to repair or replace a product or service without further charge in an agreed period of time.
The representation, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. Not to be confused with “guarantee,” which means a contract or promise by one person to answer for the performance of another person.
The process of removing chemicals, biological contaminants, suspended solids and gases from contaminated water.
A bill of lading issued by an airline certifying that items carried comply with standards set by the International Air Transport Authority (IATA).
Parts with a limited lifespan that need replacing periodically.
A person who discloses activity or information which they believe to be illegal, unethical or not in accordance with the organization’s policies and procedures.
A method of transferring funds electronically from one person or entity to another using bank accounts.
A Woman-Owned Business Enterprise (WBE) is defined as one that is at least 51% owned, operated and controlled on a daily basis by one or more female American citizens.
Women-owned small business concern means a small business concern which is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women.
The informal sharing of information between people.
Assets that are being used in the production process, which may include raw materials, labor and overheads.
Capital of a business that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
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.
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