What are Small And Medium-Sized Enterprises (Smes)? Small and medium-sized enterprises (SME) are business that has fewer than 250 employees. SMEs are defined in the European Union (EU) as businesses with fewer than 500 employees. In the United States, they are defined as businesses with fewer than 500 employees. There are many benefits to being […]
What is Supplier Diversity? Definition
What is Supplier Diversity? Definition Supplier diversity is a business initiative that seeks to include businesses owned by marginalized groups in the supply chain of major corporations. This Business Wire article defines supplier diversity and gives an overview of its benefits and challenges. What is Supplier Diversity? Supplier diversity means that companies actively seek to […]
What is Supply Base Reduction (Sbr)? Definition
What is Supply Base Reduction (Sbr)? Definition Supply Base Reduction, or SBR, is a corporate strategy employed by many large organizations in order to simplify and rationalize their supplier base. The goal of SBR is to streamline the number of suppliers an organization uses in order to obtain goods and services while also reducing costs. […]
What is Supplier Risk Management? Definition
What is Supplier Risk Management? Definition Supplier risk management (SRM) is the process of assessing, monitoring, and managing the risks associated with supplier relationships. It’s a key part of supply chain management and procurement that helps organizations avoid or mitigate disruptions to their supply chains. SRM encompasses all the activities and strategies involved in identifying, […]
What is Supplier Management? Definition
What is Supplier Management? Definition Supplier management is the process of assessing, monitoring and improving supplier performance to ensure they are able to meet the requirements of the business. It’s an important part of any supply chain and can have a significant impact on the quality of products and services, as well as the cost. […]
What is a Supplier/Vendor? Definition
What is a Supplier/Vendor? Definition When it comes to business, there are a lot of terms that get thrown around. And if you’re not in the industry, it can be hard to keep up. But don’t worry, we’re here to help. In this blog post, we’ll be exploring the term “supplier/vendor” and what it really […]
What is Supply Chain Management? Definition
What is Supply Chain Management? Definition Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the aim of achieving specific goals. It involves coordinating and integrating activities across functions and geographies to deliver a product or service to the customer at the right time, at […]
What is Third-Party Logistics (3Pl)? Definition
What is Third-Party Logistics (3Pl)? Definition In business, the term “third-party logistics” (3PL) describes the process of outsourcing logistics and transportation services to a company that specializes in those areas. The decision to outsource these services is usually based on the belief that the 3PL can do it better, faster, and/or cheaper than the company […]
What is a Third Sector Organisation (Tso)? Definition
What is a Third Sector Organisation (Tso)? Definition A third sector organisation (TSO) is a type of organisation that is neither public nor private, but has characteristics of both. TSOs are usually non-profit or charitable organisations, but can also be for-profit businesses that reinvest their profits back into the organisation or the community. There are […]
What is Vendor Management? Definition
What is Vendor Management? Definition Vendor management is the process of assessing vendor performance, defining and setting expectations for service levels, and maintaining supplier performance records. It’s a broad term that encompasses many different aspects of working with vendors, including: -Vendor selection -Contract negotiation -Vendor performance monitoring -Risk management In short, vendor management is all […]
What are Key Suppliers? Definition
What are Key Suppliers? Definition When it comes to manufacturing, there are a lot of different moving parts. And in order for everything to run smoothly, you need to have a strong supply chain. But what exactly is a key supplier? A key supplier is defined as a supplier that provides critical components or services […]
What is a Diverse Supplier? Definition
What is a Diverse Supplier? Definition As the business world gradually becomes more conscious of disparities and inequities, the term “diversity” has become a hot topic in recent years. When it comes to suppliers, there are a number of different types that businesses can choose from. But what is a diverse supplier? In this blog […]
What is Cost Avoidance? Definition
What is Cost Avoidance? Definition What is cost avoidance? In simple terms, it is measures taken to prevent costs from being incurred. This could be in the form of reducing waste, improving efficiency, or anything else that would reduce the amount of money spent unnecessarily. There are many different ways to achieve cost avoidance, but […]
What is Savings Tracking?
What is Savings Tracking? Savings tracking is the process of monitoring your personal finances in order to save money. This can be done through a number of methods, such as setting up a budget, tracking spending, and setting financial goals. While it may seem like a daunting task, savings tracking is actually a very simple […]
What is Business Questionnaire? Definition
What is Business Questionnaire? Definition A business questionnaire is a research tool used to collect data and information about a target market or specific business. It is usually used in market research or as part of a marketing plan. A business questionnaire can be used to gather data about customer demographics, buying habits, product or […]
What is Catalogue in Procurement? Definition
What is Catalogue in Procurement? Definition The term “catalogue” in procurement can refer to a couple different things. In this blog post, we will explore the definition of catalogue in procurement, as well as its advantages and disadvantages. A catalogue in procurement is essentially a tool that outlines the products or services that a company […]
What are Commodity Prices? Definition
What are Commodity Prices? Definition Commodity prices are the prices at which raw materials or basic foodstuffs are bought and sold. A variety of factors can influence commodity prices, from weather patterns to political upheaval. If you’re interested in investing in commodities, it’s important to understand what drives commodity prices. In this blog post, we […]
What is a Commodity? Definition
What is a Commodity? Definition A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. commodities are often agricultural products or natural resources such as oil, gold, and silver. While most people think of commodities as being physical things that are traded on commodity exchanges, anything […]
What is a Category In Procurement? Definition
What is a Category In Procurement? Definition In procurement, a category is a type of commodity or service that is purchased by an organization. Categories are generally created based on similarities in the commodities or services being purchased, such as price, quality, or supplier. The creation of categories helps organizations to develop and implement procurement […]
What is Minimum Order Quantity (Moq)? Definition
What is Minimum Order Quantity (Moq)? Definition Minimum order quantity or MOQ is the lowest amount of product that a supplier is willing to manufacture or sell. In other words, it’s the fewest number of units that a customer can purchase from a supplier. The purpose of having an MOQ is to ensure that manufacturers […]
What is a Pre Qualification Questionnaire in Procurement? Definition
What is a Pre Qualification Questionnaire in Procurement? Definition Before a business can start the process of procuring goods or services, they first need to identify their needs. This is done through a pre-qualification questionnaire (PQQ). A PQQ is a document used by businesses to assess the suitability of suppliers before inviting them to tender […]
What is a Taxonomy in Procurement? Definition
What is a Taxonomy in Procurement? Definition Taxonomies are a way of classifying things. In the business world, a taxonomy is a classification system for products, services, and other commodities. It’s used to help businesses understand and organize their procurement processes. A taxonomy in procurement can be helpful for a number of reasons. For one, […]
What is Evaluation in Procurement? Definition
What is Evaluation in Procurement? Definition Evaluation in procurement is the process of assessing proposals from suppliers and determining which supplier is the best fit for the buyer. The evaluation process can be used to select a single supplier or to shortlist a few suppliers for further negotiation. Evaluation is an important part of the […]
What is Needs Assessment? Definition
What is Needs Assessment? Definition A needs assessment is a systematic process for determining and addressing needs, or “gaps” in an organization. It is often used in the context of human resources, but can be applied to any area of organizational activity. The purpose of a needs assessment is to identify what an organization needs […]
What is Tender Clarification? Definition
What is Tender Clarification? Definition Tender clarification is the process of providing more information about a project or procurement in order to improve the chances of winning the bid. It is a common practice in government contracting, as well as in private sector bidding. In both cases, the goal is to improve the clarity of […]
What is Tender Management? Definition
What is Tender Management? Definition Tender management is the process of handling and evaluating requests for proposals (RFPs), bids, and tenders. The goal of tender management is to select the most advantageous proposal in terms of cost, quality, and delivery. Tender management is a complex process that requires careful planning and execution. There are many […]
What is a Tender? Definition
What is a Tender? Definition A tender is an invitation to bid for a project or accept a formal offer such as a takeover offer. Tenders are used in both the public and private sector. The main difference between a request for proposal (RFP) and a tender is that an RFP is usually conducted when […]
What is a Tender Evaluation Panel? Definition
What is a Tender Evaluation Panel? Definition A Tender Evaluation Panel (TEP) is a group of people who are responsible for the assessment of tenders. The panel is usually made up of representatives from the company that issued the tender, as well as experts in the relevant field. The purpose of a Tender Evaluation Panel […]
What is a Reverse Auction? Definition
What is a Reverse Auction? Definition A reverse auction is a type of auction in which the roles of buyer and seller are reversed. In a typical auction, buyers compete against each other to purchase goods or services from a seller. In a reverse auction, it is the seller that competes against other sellers to […]
What is Balanced Scorecard? Definition
What is Balanced Scorecard? Definition The Balanced Scorecard, popularized in the early 1990s, is a strategy performance management tool – organizations use it to identify and improve various internal functions and external outcomes. It’s a framework that provides a comprehensive view of an organization, from strategy to execution. The aim is to ensure that all […]
What is Auction In Procurement? Definition
What is Auction In Procurement? Definition In procurement, auction is a process of soliciting bids from potential suppliers and selecting the most advantageous bid. An auction can be used for various types of procurements, including but not limited to, services, commodities, and construction projects. Auctions are commonly used in procurements where there are multiple potential […]
What is a Bidder? Definition
What is a Bidder? Definition When it comes to online auctions, there are two key players: the seller and the bidder. The seller is the party who is offering up an item for auction, while the bidder is the party who is interested in purchasing the item. In order to place a bid, bidders must […]
What is a Bid? Definition
What is a Bid? Definition A bid is an offer made by a contractor to a client in order to win a construction project. A bid includes an estimate of the cost of labor and materials necessary to complete the project, as well as a proposed timeline for completion. Bids are generally submitted in response […]
What is a Bill Of Materials (Bom)? Definition
What is a Bill Of Materials (Bom)? Definition A bill of materials is a list of all the materials, components, and parts needed to build or manufacture a product. The bill of materials typically includes information such as part numbers, descriptions, quantities, and unit costs. The bill of materials is often used in manufacturing and […]
What is Bid Security (Bid Bond)? Definition
What is Bid Security (Bid Bond)? Definition If you’re new to the world of construction, you may be wondering what bid security is and why it’s important. In this blog post, we will explore the definition of bid security and how it can protect your business in the construction industry. Bid security, also known as […]
What is a Buyer? Definition
What is a Buyer? Definition A buyer is a person who purchases goods or services for personal or business reasons. In business, there are different types of buyers, each with their own set of responsibilities. For example, a purchasing agent is responsible for buying materials and supplies for a company. A marketing manager may be […]
What is Bill Of Quantities? Definition
What is Bill Of Quantities? Definition The Bill of Quantities, or BoQ, is a document prepared by the quantity surveyor during the tendering process. It provides full description of the works to be carried out and forms the basis for pricing the works by different contractors. The BoQ usually contains a description of each item […]
What is Competitive Bidding? Definition
What is Competitive Bidding? Definition Competitive bidding is a process where potential contractors submit sealed bids to a project owner in hopes of being awarded the contract. It is commonly used in construction and procurement projects, as well as in the sale of goods and services. In a traditional sealed-bid auction, each bidder submits their […]
What is an E-auction? Definition
What is an E-auction? Definition E-auction is the process of buying and selling products or services online through an auction platform. The first e-auction was held in 1995 by the U.S. Department of Treasury and since then, online auctions have become a popular way to buy and sell everything from gadgets to real estate. E-auctions […]
What is E-Tendering? Definition
What is E-Tendering? Definition E-tendering is the process of submitting, receiving, and evaluating tenders electronically. This system allows for a more efficient and secure way of conducting business as all documents are stored digitally. E-tendering also offers transparency and accountability as all interested parties can view the same information at the same time. The process […]
What are Goods in Business? Definition
What are Goods in Business? Definition In business, the term “goods” refers to physical products that are either produced or purchased by a company for the purpose of selling them. Goods are also known as inventory. Inventory is a key asset for any company because it represents the finished products or services that a company […]
What is E-Sourcing? Definition
What is E-Sourcing? Definition E-sourcing is the process of using the internet to find and connect with potential suppliers. This can be done through online directories, supplier search engines, or even social media platforms. E-sourcing can be a great way to find new suppliers, especially if you’re looking for international options. It’s also a cost-effective […]
What is Insourcing? Definition
What is Insourcing? Definition When it comes to business, there are a lot of terms that get thrown around. “Outsourcing” and “insourcing” are two of them. But what do they actually mean? In this blog post, we will explore the definition of insourcing and how it differs from outsourcing. We will also discuss the benefits […]
What is Instructions To Tenderers? Definition
What is Instructions To Tenderers? Definition As the name suggests, Instructions to Tenderers (ITT) are a set of instructions given by the procuring authority to potential contractors who wish to tender for a project. It is a formal document that contains all the information that potential contractors need to know about the project in order […]
What is a Late Tender? Definition
What is a Late Tender? Definition A late tender is an offer to purchase securities that arrives after the deadline set by the issuer. The issuer may or may not accept late tenders, at their discretion. Tenders are frequently used in corporate takeovers, where the acquiring company offers to buy shares from existing shareholders at […]
What is a Late Tender? Definition
What is a Late Tender? Definition A late tender is an offer to purchase securities that arrives after the deadline set by the issuer. The issuer may or may not accept late tenders, at their discretion. Tenders are frequently used in corporate takeovers, where the acquiring company offers to buy shares from existing shareholders at […]
What is a Qualified Bid? Definition
What is a Qualified Bid? Definition Ever wonder what goes into those big construction projects you see around town? It’s not just a bunch of workers with some tools, there’s a lot of planning that happens before any construction can begin. One of the most important steps in the process is the bid. But what […]
What is Insourcing? Definition
What is Insourcing? Definition When it comes to business, there are a lot of terms that get thrown around. “Outsourcing” and “insourcing” are two of them. But what do they actually mean? In this blog post, we will explore the definition of insourcing and how it differs from outsourcing. We will also discuss the benefits […]
What is a Quotation? Definition
What is a Quotation? Definition In business, a quotation is a document that a vendor or service provider would give to a customer to describe the estimated costs for a requested service. This is usually given in response to a request for proposal (RFP). A quotation may also include terms and conditions, such as payment […]
What is a Qualified Tender? Definition
What is a Qualified Tender? Definition If you’re in the business world, tenders are a reality. A tender is an offer to do work or provide supplies at a set price. The government and some businesses use open tenders, where any supplier can enter their offer. However, many organizations use closed tenders, which are only […]
What is a Requisitioner? Definition
What is a Requisitioner? Definition A requisitioner is an individual or organization that initiates a requisition, which is an official request. A requisition may be for goods, services, or both. It may also be for money. A requisition is used when an individual or organization needs something and does not have the authority to procure […]
What is a Quote? Definition
What is a Quote? Definition A quote is a group of words that records someone’s exact words. It can be direct speech, meaning the person’s words were recorded exactly as they were said, or indirect speech, meaning the person’s words were paraphrased. A quote is also known as an aphorism, which means a short, memorable […]
What is Source-To-Pay (S2P)? Definition
What is Source-To-Pay (S2P)? Definition Source-to-pay, or S2P for short, is a business process that encompasses all of the steps involved in procuring goods and services from vendors. In other words, source-to-pay is the entire purchase cycle from start to finish. It begins with identifying a need within the company, sourcing potential vendors, negotiating terms, […]
What is Sourcing? Definition
What is Sourcing? Definition Sourcing is the process of finding and acquiring goods and services. The term “sourcing” can be used to refer to the procurement of materials, components, or finished products. It can also include services such as research and development, marketing, logistics, and distribution. In simple terms, sourcing is the act of finding […]
What are Tender Documents? Definition
What are Tender Documents? Definition Tender documents are documents that are submitted by companies who wish to be considered for a project. The documents contains information about the company, their qualifications, and their proposal for the project. The selection process for awarding a project is often based on these documents, so it is important for […]
What is Working Capital? Definition
What is Working Capital? Definition Working capital is a metric used to gauge a company’s short-term liquidity and its ability to cover operational expenses. It’s important to note that working capital is different from cash flow. While cash flow measures all of the money coming in and out of a business, working capital only looks […]
What is Maverick Buying? Definition
What is Maverick Buying? Definition Maverick buying is a term used to describe the act of making a purchase outside of the company’s usual purchasing process. Maverick buyers are usually employees who have authority to make purchases on behalf of their company, but choose to do so without going through the proper channels. Maverick buying […]
What is Whole Life Costs? Definition
What is Whole Life Costs? Definition Whole life costs (WLC) is a system of calculation used by businesses to understand the financial impact of their product or service over its entire life cycle. This costing method takes into account all aspects of a product or service, from development and production through to delivery, use, and […]
What is Volatile Spend? Definition
What is Volatile Spend? Definition You’ve likely heard of volatile spend before, but do you really know what it is? Volatile spend is defined as any money that your company spends on a regular basis that can fluctuate greatly from month to month. This type of spend includes things like inventory, marketing, and even employee […]
What is Whole Life Costing? Definition
What is Whole Life Costing? Definition Whole life costing (WLC) is a tool used to assess all costs associated with owning, operating and maintaining an asset over its entire life. It can be used for tangible assets such as buildings, bridges and vehicles, or intangible assets such as software systems or intellectual property. The aim […]
What is Value For Money (Vfm)? Definition
What is Value For Money (Vfm)? Definition When it comes to making purchasing decisions, we often ask ourselves “is this item worth the price?” In other words, are we getting good value for our money? This concept is known as value for money (VfM) and can be applied to anything from houses and cars to […]
What are Direct Material Costs? Definition
What are Direct Material Costs? Definition In business and accounting, direct material costs are the cost of the materials used in the manufacture or production of a product. These costs are directly traceable to the finished product and can be easily accounted for in the financial records. Direct material costs can include the cost of […]
What is Spend Management? Definition
What is Spend Management? Definition Spend management is the process of strategically managing your company’s spending in order to reduce costs and improve efficiency. It involves understanding where your company is spending money, setting limits on what can be spent, and carefully monitoring spending to ensure compliance. There are many different aspects to spend management, […]
What are Transaction Costs in Procurement? Definition
What are Transaction Costs in Procurement? Definition Introduction When it comes to business, there are all sorts of costs associated with running and maintaining a successful operation. But what are transaction costs in procurement? In short, transaction costs are the fees and commissions that are paid during a business transaction. This can include anything from […]
What is a Public Sector Buyer? Definition
What is a Public Sector Buyer? Definition A public sector buyer is an individual or organization that purchases goods or services on behalf of a government entity. Public sector buyers are responsible for ensuring that the products and services they purchase meet the needs of the government entity they represent and are procured in a […]
What is a Rebate? Definition
What is a Rebate? Definition A rebate is a discount on the purchase of an item, typically given when the customer completes a specific task set forth by the company, such as filling out a survey or sending in proof of purchase. In order to redeem a rebate, the customer must follow the instructions included […]
What is Intangible Cost? Definition
What is Intangible Cost? Definition Introduction In business, the term “intangible costs” refers to all expenses that don’t have a physical form. These can include the costs of research and development, intellectual property, advertising, and employee training. While some intangible costs can be difficult to quantify, they are nonetheless real expenses that must be considered […]
What is Firm Price? Definition
What is Firm Price? Definition When it comes to pricing, there are a lot of terms that get thrown around. Cost-plus, value-based, and firm price are just a few. So, what is firm price? In short, firm price is a type of pricing where the buyer and seller agree on a set price for goods […]
What is an Estimate in Business? Definition
What is an Estimate in Business? Definition Estimate in business refers to the value or quantity of something that is approximate and not exact. It is a statement or calculation of expected costs, revenues, or profits. In business, an estimate is based on past experience and knowledge of current trends. It is generally used when […]
What is Dynamic Discounting? Definition
What is Dynamic Discounting? Definition Dynamic discounting is a type of early payment discount that is offered to buyers based on the buyer’s ability to pay sooner than the contracted terms. The idea behind dynamic discounting is that the earlier the buyer can pay, the more cash flow the seller has to invest in other […]
What is Cost Plus? Definition
What is Cost Plus? Definition Cost plus is a pricing method where the selling price of a product or service is set at the cost of production plus a markup percentage. This type of pricing is common in retail and can be seen as either a fixed price or an ongoing fluctuating price. While this […]
What is Cost Of Goods Sold (Cogs)? Definition
What is Cost Of Goods Sold (Cogs)? Definition What is cost of goods sold (COGS)? Cogs refers to the direct costs associated with producing a product or service. This includes the cost of materials, labor, and overhead. In accounting, COGS is considered an expense and is recorded on the income statement. The purpose of recording […]
What is Cost Modelling? Definition
What is Cost Modelling? Definition Cost modelling is the process of estimating the future costs of a product or service. This can be done for a number of reasons, such as to price a product or service, to compare the cost of different options, or to forecast the cost of production. There are many different […]
What is Cost Estimate? Definition
What is Cost Estimate? Definition When it comes to manufacturing, one of the most important things to keep in mind is cost estimation. After all, you need to know how much it will cost to produce your product before you can even begin to price it. But what exactly is cost estimation? In this blog […]
What is Forecasting In Procurement? Definition
What is Forecasting In Procurement? Definition Forecasting in procurement is the process of estimating future demand for goods or services. The goal of forecasting is to ensure that the correct level of resources are available when needed, while avoiding overstocking or understocking. Procurement forecasting can be done using a variety of methods, including trend analysis, […]
What is Index Pricing? Definition
What is Index Pricing? Definition Index pricing is a pricing strategy used by companies to set the price of their products or services. This type of pricing is based on an index, which is a number that represents the average price of a good or service in a given market. Index pricing is often used […]
What is Cost Reduction? Definition
What is Cost Reduction? Definition Cost reduction is a process where businesses attempt to minimize expenses and waste in order to increase profits. The goal is to find ways to do more with less, so that resources can be used more efficiently. There are many different ways to reduce costs, but it’s important to remember […]
What is Agile Spend Management? Definition
What is Agile Spend Management? Definition Agile spend management is a new way of thinking about how organizations manage and control their spending. In the traditional model, organizations typically have a centralized procurement department that manages all spending. This can be very inefficient, especially if different departments have different needs. With agile spend management, each […]
What are Life Cycle Costs? Definition
What are Life Cycle Costs? Definition Life cycle costing (LCC) is an important concept in business that looks at the total cost of ownership for a product or service. This includes all costs incurred from the initial purchase to the eventual disposal of the item. LCC is used by businesses to make informed decisions about […]
What is Cost Analysis? Definition
What is Cost Analysis? Definition Cost analysis is the process of allocating resources and assessing the financial feasibility of a project. In other words, cost analysis is the practice of evaluating a project to determine if it is worth undertaking. Projects can be anything from building a new factory to launching a new product. Cost […]
What is Bottom Line? Definition
What is Bottom Line? Definition Most businesses have one primary goal: to make money. But how do they go about doing that? The answer lies in the bottom line. In business, the bottom line is a term used to describe a company’s net income, or the total amount of money left over after all expenses […]
What is Fixed Price? Definition
What is Fixed Price? Definition In business, the term “fixed price” takes on a variety of different meanings. Sometimes it refers to the price of a good or service that is set and cannot be changed. Other times, it refers to a contract in which the price is set but can be adjusted based on […]
What are Landed Costs? Definition
What are Landed Costs? Definition In business, the term “landed cost” is used to describe the total cost of a product or shipment when it arrives at its destination. This includes the cost of the goods themselves, as well as any taxes, duties, shipping, and insurance fees that may be incurred along the way. Landed […]
What is a P-Card? Definition
What is a P-Card? Definition A P-Card, also known as a procurement card or purchase card, is a type of credit card that allows businesses to streamline and automate their purchasing processes. P-Cards can be used for small purchases or for large contracts. Typically, there is a limit on the amount that can be spent […]
What is Life Cycle Costing? Definition
What is Life Cycle Costing? Definition The term “life cycle costing” (LCC) is one you may have come across in your business travels, but what does it actually mean? In short, life cycle costing is a tool used to assess the total cost of ownership (TCO) of an asset over its lifespan. This includes everything […]
What is Linear Pricing? Definition
What is Linear Pricing? Definition Linear pricing is a pricing strategy where price increases or decreases in direct proportion to the quantity of goods or services purchased. This type of pricing is common in businesses that sell commodities or other undifferentiated products. While linear pricing is straightforward and easy to understand, it can often be […]
What is Long Tail Spend? Definition
What is Long Tail Spend? Definition What is long tail spend? It’s a term used in business and procurement that refers to the aggregate of low-volume, indirect purchases that a company makes. Long tail spend is often 10-15% of a company’s total annual spend, but can be as high as 30-40% for certain industries. While […]
What is Purchase Price Variance (Ppv)? Definition
What is Purchase Price Variance (Ppv)? Definition Purchase price variance, or PPV, is the amount of money that a company saves or overspends on inventory due to changes in the prices of their raw materials. This calculation can be done for an entire company or for specific products. The information is useful for budgetary purposes […]
What is a Procurement Card, Purchasing Card, P Card? Definition
What is a Procurement Card, Purchasing Card, P Card? Definition A procurement card, also known as a purchasing card or P card, is a type of credit card that is used by businesses to make purchases. The card can be used for both small and large purchases, and it can be used by employees of […]
What is a Purchasing Card? Definition
What is a Purchasing Card? Definition A purchasing card, also called a p-card or procurement card, is a type of business credit card that allows employees to make business purchases without going through the traditional requisition process. Purchasing cards are usually issued to employees who make frequent business purchases, such as those in the purchasing […]
What is a Spend Cube? Definition
What is a Spend Cube? Definition A spend cube is a data visualization tool used to analyze and understand an organization’s spending. Spend cubes can be used to track spending across different time periods, departments, and/or vendors. This type of tool can be helpful for budgeting and forecasting purposes, as well as identifying areas of […]
What is Tail Spend? Definition
What is Tail Spend? Definition If you’re in the business world, you’ve probably heard the term “tail spend” before. But what is it, really? In short, tail spend is the money that businesses spend on goods and services that are not essential to their operations. This can include anything from office supplies to travel expenses. […]
What is Absorption Costing? Definition
What is Absorption Costing? Definition In business, there are many different ways to calculate the cost of goods sold (COGS). One method is called absorption costing, and it’s important to understand how it works in order to make sound business decisions. Absorption costing takes into account all of the costs associated with manufacturing a product, […]
What is Activity-Based Costing (ABC)? Definition
What is Activity-Based Costing (ABC)? Definition Activity-based costing (ABC) is a costing method that assigns indirect costs to products based on the activities that are associated with producing those products. In traditional costing, indirect costs are allocated to products based on a single allocation base, such as machine hours or direct labor hours. However, this […]
What is After-The-Fact Purchase Order? Definition
What is After-The-Fact Purchase Order? Definition A purchase order (PO) is a document that authorizes a buyer to purchase products or services from a seller. After-the-fact purchase orders are created after the goods or services have been received or the work has been completed. While this may seem like an unnecessary step, after-the-fact purchase orders […]
What is Agile Procurement? Definition
What is Agile Procurement? Definition Agile procurement is a new approach to buying that is gaining popularity in today’s business world. Unlike traditional procurement, which can be slow and bureaucratic, agile procurement is designed to be fast and flexible. So what is agile procurement? And how can it benefit your business? In this blog post, […]
What is Aggregation? Definition
What is Aggregation? Definition If you’ve been involved in digital marketing for any length of time, you’ve probably heard the term “aggregation” thrown around. But what is aggregation, really? Simply put, aggregation is the process of collecting data from multiple sources and then consolidating that data into a single format or database. This data can […]
What is a Back Order? Definition
What is a Back Order? Definition In business, a backorder is defined as an order for goods or services that cannot be immediately fulfilled because inventory is not readily available. Backorders can occur for a variety of reasons. For example, a customer may order an item that is out of stock, or a supplier may […]
What is an Authorised Officer? Definition
What is an Authorised Officer? Definition In short, an Authorised Officer is a role created by the Australian Border Force (ABF) to help with the management and movement of people and goods across Australia’s borders. The Authorised Officer role was introduced on 1 July 2015 as part of the ABF’s establishment. The ABF is a […]