The oboloo Team

What is Performance Security (Performance Bond)? Definition A performance security, also called a performance bond, is defined as a type of financial guarantee that is typically used in construction contracts. In the event that a contractor fails to perform according to the terms of the contract, the surety company that issued the bond will step […]

What are Pricing Schedules? Definition A pricing schedule is a list of prices for the goods or services that a company offers. The list may be published in a price book, on a company website, or given to customers upon request. Pricing schedules are used by companies to help them keep track of their prices […]

What is Price On Application (POA)? Definition You’ve likely seen the letters “P.O.A.” on certain listings for products or services and wondered what they meant. P.O.A. stands for “price on application” and is usually used when the price of a good or service is not readily apparent or when it would be unfair to list […]

What is a Pre-Qualification Questionnaire (PQQ)? Definition You’ve probably heard of the term “pre-qualification questionnaire” or “PQQ” before, but what does it actually mean? In short, a pre-qualification questionnaire is a document used by organizations in the selection process for contractors. It is used to determine if a contractor has the necessary experience and qualifications […]

What is a Private Finance Initiative (PFI)? Definition A Private Finance Initiative is a type of contract between the public and private sector, whereby the private sector finances, designs, builds, operates and maintains certain public services or projects. The idea behind PFIs is that they transfer the risk of a project from the public to […]

What is a Procurement Officer? Definition A procurement officer is a professional who manages the process of procuring goods and services for an organization. Procurement officers are responsible for all aspects of the procurement process, from identifying vendors to negotiating contracts. The role of a procurement officer has become increasingly important in recent years as […]

What is a Procurement Exercise? Definition A procurement exercise is a planned and structured process that an organization undertakes to identify, select, and contract with a supplier to provide goods or services. The process usually involves the development of specifications for the goods or services required, the identification of potential suppliers, the request for proposals […]

What is a Prior Information Notice (PIN)? Definition A Prior Information Notice (PIN) is a notice published by a contracting authority, in order to seek market intelligence. It allows potential contractors to express their interest in being involved in a future procurement process for a particular project or contract. A PIN does not constitute a […]

What is a Procurement Function? Definition The procurement function is one that is integral to any business or organization. It is responsible for the coordination and management of all activities related to the acquisition of goods and services. Procurement functions can be centralized or decentralized, depending on the organizational structure. In a centralized organization, the […]

What is Procurement Procedure? Definition The procurement procedure is the process that an organization uses to purchase goods and services. The process usually begins with a needs assessment, followed by sourcing, negotiation, and contracting. Organizations use different procurement procedures depending on the type of good or service being purchased. Some organizations have formal procedures that […]

What is a Procurement System? Definition A procurement system is a set of procedures and information systems that an organization uses to procure goods and services. The system includes the people, processes, and technologies that organizations use to manage their supplier relationships and purchase goods and services. In many organizations, the procurement function is responsible […]

What is a Procurement Process Cycle? Definition The procurement process cycle is the process followed by a company to purchase goods or services. The cycle begins with the identification of a need, followed by the selection of a supplier, negotiation of terms, and finally, the placement of an order. After the order is placed, the […]

What is Procurement Transformation? Definition Procurement transformation is the process of re-engineering and redesigning an organization’s procurement function in order to achieve best-in-class performance. The primary objectives of procurement transformation are to increase savings, reduce cycle times, and improve quality. In order to achieve these objectives, organizations must implement new processes, organizational structures, and technologies. […]

What is Procurement Process? Definition The procurement process is the process an organization uses to acquire goods or services from external suppliers. The process usually starts with the identification of a need, followed by the selection of a supplier and the negotiation of terms and conditions. Once a supplier has been selected, the organization will […]

What is Procurement Strategy? Definition Procurement strategy is a plan for how an organization will go about acquiring the goods and services it needs. This includes everything from identifying potential suppliers to negotiating contracts and finalizing purchase agreements. The goal of procurement strategy is to get the best value for the organization’s money while also […]

What is Procure-To-Invoice (P2I)? Definition Procure-to-Invoice, or P2I, is a process in which a company buys goods or services and then raises an invoice to the customer. P2I usually starts with a purchase order (PO), which is an agreement between the buyer and seller that details the products or services being procured, the price, and […]

What are Procurement Value Levers? Definition When it comes to procurement, there are a lot of moving parts. You have to source the right materials, at the right price, from the right supplier. And you have to do it in a way that meets your company’s quality standards. But what if I told you there […]

What is Procurement? Definition The term “procurement” is one that you may have heard before, but what does it actually mean? In short, procurement is the process of obtaining goods or services. However, there is much more to it than that. There are different types of procurement, and the process can vary depending on the […]

What is Procure-To-Pay (P2P)? Definition Procure-To-Pay, or P2P, is a term used in business to describe the process of procuring goods or services and then paying for them. The P2P process usually starts with a company identifying a need for a good or service. Then, the company will put out a request for proposal (RFP) […]

What is Prompt Payment? Definition Prompt payment is the act of paying invoices within the terms agreed upon by the supplier. It’s a practice that’s gaining traction in recent years as more and more businesses attempt to streamline their accounts payable processes. But what are the benefits of prompt payment? And why should your business […]

What is Proof Of Concept? Definition A proof of concept (POC) is a demonstration, the purpose of which is to verify that certain concepts or theories have the potential for real-world application. A POC is often used in business and software development to determine whether a particular solution will work in practice, and whether it […]

What is a Proposal? Definition A proposal is a written document that is submitted to an organization with the aim of persuading them to accept a particular course of action, or provide funding for a specific project. A proposal can be either formal or informal, but most commonly takes the form of a business proposal. […]

What is a Proposer in Business? Definition If you’ve ever been in a meeting where someone pitches an idea and it’s met with lukewarm enthusiasm, you’ve witnessed firsthand what it means to be a poor proposer. A proposer is someone who puts forward a plan, proposal, or suggestion. In business, the ability to make a […]

What is Public Procurement? Definition Public procurement is the process by which the government buys goods and services from the private sector. It’s a process that is regulated by law and overseen by an independent body. In the United States, public procurement is governed by the Federal Acquisition Regulation (FAR). The FAR sets out the […]

What is Public Sector Or Public Sector Body? Definition Public sector organizations are those that are set up by the government to provide services to the public. These organizations can be at the federal, state, or local level. Public sector bodies are those organizations that are not governmental but which exist to serve the public […]

What are Public Procurement Rules? Definition Public procurement rules are the set of policies, procedures, and regulations governing the purchase of goods and services by government entities. The main goal of public procurement rules is to ensure that taxpayer money is spent wisely and efficiently. There are many different types of public procurement rules, but […]

What is a Purchase Order? Definition In business, the purchase order is a document that authorizes a buyer to purchase goods or services from a seller. The purchase order outlines the items the buyer agrees to purchase at a set price. A purchase order is usually created after the buyer and seller have negotiated the […]

What is a Purchase Invoice? Definition A purchase invoice is a written request sent to a supplier for the purchase of goods or services. It is generally used in businesses as a way to keep track of what was ordered, when it was ordered, and how much was paid. While purchase invoices are not always […]

What is a Purchase Requisition? Definition A purchase requisition (PR) is a formal document that is created by a department within an organization when it intends to buy goods or services. The PR is then approved by a manager and sent to the purchasing department, which will find vendors and request quotes. A PR usually […]

What is Purchasing? Definition The purchasing process is a critical component of any business. It involves the acquisition of goods and services to be used in the production of other goods and services or to be sold, leased, or rented to customers. Purchasing is an important function because it represents the point at which a […]

What is Purchase-To-Pay Cycle (P2P)? Definition The purchase-to-pay cycle, also known as P2P, is the process that a company uses to procure goods or services and then pay for them. The cycle begins when a company identifies a need for a good or service. It then searches for and selects a supplier of the good […]

What is Quality Assurance (Qa)? Definition Quality assurance (QA) is a process or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the customer. In order to achieve this, quality assurance activities monitor and document the results of […]

What is a Receipt Of Goods, Goods Receipt Note? Definition A Goods Receipt is a document that is created when goods are received. It is used to track and manage inventory, and can be used as proof of purchase. A Goods Receipt Note (GRN) is a document that is generated when goods are received into […]

What is Remedy in Business? Definition In business, the term “remedy” is often used to describe a situation where one party seeks to recover damages from another party. This could be in the form of money, property, or even an equitable relief. A remedy in business can also be seen as a “corrective measure” that […]

What is Regulated Procurement? Definition Regulated procurement is the process of acquiring goods or services in compliance with laws, regulations, and other government-mandated requirements. The purpose of regulated procurement is to ensure that the government gets the best value for its money and that the process is fair and transparent. There are many different types […]

What is a RFEI (Request For Expression Of Interest)? A request for expression of interest (RFEI), or EOI, is a type of proposal used in soliciting potential contractors or suppliers for a project. It is not a binding document, but rather allows the recipient to see if there is interest in the project and whether […]

What is Schedule Of Rates? Definition A Schedule of Rates is a document that contains a list of materials, labor, and equipment necessary for a construction project. The schedule lists the unit price and quantity of each item needed to complete the work. The purpose of a schedule of rates is to provide an accurate […]

What is Residual Value? Definition When it comes to depreciation, there are two key concepts that you need to understand: residual value and salvage value. Both have a significant impact on how much your car is worth over time. In this blog post, we will be focusing on residual value. We’ll define it, explain how […]

What is Restricted Procedure? Definition Restricted procedure is a type of medical procedure that can only be performed by certain medical personnel due to its risks. The level of risk is determined by the type of procedure, as well as the patient’s individual health condition. There are three classifications for restricted procedures: high-risk, moderate-risk, and […]

What is Risk Management? Definition Risk management is the process of identifying, assessing, and managing risk. It’s a proactive approach to dealing with potential issues that could impact your business negatively. Risk management is important for businesses of all sizes. By identifying risks early, you can take steps to avoid or mitigate them. This can […]

What is Risk Transfer? Definition Risk transfer is the process by which one party (the “transferee”) accepts the risk of loss from another party (the “transferor”). The transferee may be required to pay a premium to the transferor for assuming this risk. Risk transfer can take many forms, but is most commonly seen in insurance […]

What are Security Instruments in Business? Definition In business, the term “security instruments” refers to any type of collateral that is used to secure a loan or other type of debt. This collateral can take many different forms, but the most common type is real estate. Other security instruments include things like vehicles, jewelry, art, […]

What is Sales And Operations Planning (S&OP)? Definition Sales and Operations Planning (S&OP) is a process used by businesses to ensure that their supply of materials meets customer demand. It’s a complex system that requires coordination between different departments within the company, as well as with suppliers and customers. The goal of S&OP is to […]

What is Segregation Of Duties? Definition Have you ever wondered how businesses keep track of their finances? How do they prevent fraud and ensure that everyone is doing their job correctly? Segregation of duties is one way that businesses accomplish this. In short, segregation of duties is the separation of key job functions within a […]

What is a Should Cost Model? Definition A should cost model is a tool used by procurement and financial professionals to estimate the “should cost”, or the cost that a product or service “should” be, given certain market conditions. The should cost model takes into account variables such as material costs, labor costs, overhead costs, […]

What are Services? Definition A service is defined as an intangible good that is produced and consumed simultaneously. This can be contrasted with a physical good, which is a tangible product that is produced and then consumed at a later time. While this definition may seem straightforward, the concept of a service can be difficult […]

What is a Single Source in Business? Definition A single source in business is defined as a supplier that provides all of the necessary goods or services for a company to operate. This type of supplier relationship is often used in manufacturing and production businesses, where having a dependable source for raw materials is crucial […]

What is Specification in Business? Definition In business, the term ‘specification’ refers to a document that outlines the requirements that must be met by a product or service. A specification is often used in tenders, contracts, and other similar agreements to ensure that both parties are clear on what is required. A specification should be […]

What is a Single Point Of Enquiry (SPOE)? Definition The term “single point of enquiry” is one that you may have heard before, but what does it actually mean? In short, a single point of enquiry (SPOE) is a centralised system or team that can provide answers to customer questions. In a world where customers […]

What is a Sole Source? Definition A sole source is defined as a company or supplier that has the exclusive rights to provide a product or service. This can happen for many reasons, such as the company being the only one that makes a particular product, or having a unique license or patent. When it […]

What is a Social Enterprise? Definition A social enterprise is an organization that uses business strategies to achieve a social or environmental impact. Unlike traditional businesses, which reinvest profits into the company, social enterprises reinvest profits into their cause. The concept of social enterprise is relatively new, only coming into the mainstream in the last […]

What is Solicitation in Business? Definition If you’re in business, chances are you’ve heard the term “solicitation” before. But what does it actually mean? In short, solicitation is any type of communication (usually written or verbal) that is used to sell a product or service. This can include everything from ads and cold calls to […]

What is Spend Leakage? Definition Spend leakage is the term used to describe when a company’s spending exceeds its budget. In other words, it’s when your organization is bleeding money. While this may not seem like a big deal at first, over time it can have a significant impact on your bottom line. If left […]

What is Standstill in Business? Definition In business, the term “standstill” is used to describe a company or industry that has no growth or progress. It can be used to describe both positive and negative situations. A standstill can be caused by many different factors. For example, a company may reach a standstill because it […]

What are Standing Orders? Definition Standing orders are a type of financial transaction in which one party (usually a bank or broker) agrees to buy or sell a security at a set price for another party. The purpose of a standing order is to provide liquidity and stability in the market. In the securities market, […]

What is Stewardship in Business? Definition def·i·ni·tion /dəˌfinəSH(ə)n/ noun 1. the action or process of defining something. “the definition of ‘stewardship’” 2. a statement that explains the meaning of a word or phrase. “this is the dictionary definition of the word” When it comes to business, what does the term “stewardship” really mean? Is it […]

What is Strategic Sourcing? Definition Strategic sourcing is the process of identifying and selecting suppliers based on criteria that go beyond price. This means that when companies are looking for new suppliers, they will not only consider the cost of the goods or services, but also things like quality, delivery time, and more. The goal […]

What is a Stock Keeping Unit (SKU)? Definition A stock keeping unit (SKU) is a code that uniquely identifies a product within your inventory management system. Every time a product is added to your inventory, it is given a SKU. This code helps you keep track of products and helps you manage your inventory more […]

What is Stock? Definition A lot of people think they know what stocks are, but when it comes down to it, they don’t really have a clue. In this blog post, we’re going to explore the definition of stock and how it can be used in different ways. Stocks are basically partial ownership in a […]

What is Sub-Contracting? Definition Sub-contracting is a business arrangement in which a company contracts with another company to provide goods or services that are necessary to the first company’s operation. The term “sub-contracting” can also refer to the act of contracting out such work. Sub-contracting arrangements are common in many industries, ranging from construction and […]

What is Swot Analysis? Definition SWOT analysis is a popular management tool that helps business owners and managers identify the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of their organizations. A SWOT analysis can be conducted for any business, product, or service, in any industry. It can also be used to assess an entire organization or […]

What is a Sub-Central Organisation? Definition A sub-central organization is an organization that exists within a larger organization and has a specific purpose or focus. This type of organization is common in corporations, where there may be a marketing department, a human resources department, and so on. The term “sub-central” can also refer to the […]

What is a Threshold in Business? Definition In business, a threshold is a specific level or point that marks the dividing line between two states. The term can be used in different ways, depending on the context. For example, a company might have a certain threshold for profitability. Once they reach that level of profit, […]

What is a Two Stage Selective Tendering? Definition When it comes to tendering for construction work, there are a few different methods that can be adopted. One such method is two stage selective tendering. But what exactly is two stage selective tendering? Keep reading to find out everything you need to know about this tendering […]

What is Supported Business? Definition In recent years, there has been a growing movement of businesses that are “supported.” What does this mean? A supported business is one that is designed to have a positive impact on society and the environment, instead of just maximizing profits. There are many different types of supported businesses, but […]

What is a Waiting Time Charge in Business? Definition In business, a waiting time charge is a fee assessed when work is delayed due to reasons that are within the control of the service provider. This type of charge is common in industries where time is of the essence, such as construction, plumbing, and electrical […]

What is Sustainable Procurement? Definition Sustainable procurement is the process of sourcing goods and services in a way that minimizes environmental impact and preserves natural resources. It’s also sometimes called “green purchasing” or “environmentally friendly procurement.” The goal of sustainable procurement is to reduce the ecological footprint of businesses and organizations by making more environmentally […]

What is a Tariff? Definition A tariff is a tax or duty imposed by a governing body on imported or exported goods. The purpose of tariffs is to protect domestic industries from foreign competition by making imported goods more expensive. Tariffs are usually imposed by a country’s government on goods coming into the country from […]

What is Surety? Definition The definition of surety is a contract or undertaking in which one party agrees to be responsible for the performance of another party. In other words, a surety is a third party that guarantees the payment of a debt or the performance of another party. When it comes to business, there […]

What is TFEU? Definition TFEU stands for Treaty on the Functioning of the European Union. It is an agreement between the member states of the European Union that sets out the rules for how the EU functions. The treaty was signed in 1957 by the six founding members of the EU: Belgium, France, West Germany, […]

What is Transparency in Business? Definition Transparency is a term that gets thrown around a lot these days, but what does it actually mean in the business world? At its most basic level, transparency in business refers to the sharing of information between different parties. This can take many forms, from financial data to supply […]

What is UNSPSC? Definition You may have seen the term UNSPSC on product packaging or in business documents, but what does it mean? UNSPSC is an acronym that stands for “United Nations Standard Products and Services Code.” It’s a system of classification used to identify products and services. The code is made up of eight […]

What is a Veat Notice? Definition A Veat Notice is a formal document that notifies an individual or organization of the termination of their services. This type of notice is typically used in business-to-business (B2B) relationships, as it provides a way to end a contract in a professional and courteous manner. A Veat Notice can […]

What is a Voluntary And Community Organisation (VCO)? Definition A voluntary and community organisation (VCO) is an organisation that is set up and run by volunteers. This type of organisation can be anything from a club or society, to a charity or NGO. There are many different types of VCOs, all of which play an […]