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UTC (Coordinated Universal Time)

Coordinated Universal Time (UTC) is the international standard for timekeeping. It is based on a 24-hour clock and is used as the official basis for performing governmental, legal, medical, financial, and other transactions worldwide. UTC ensures that all activities are conducted using an accurate, consistent, and reliable measure of time. In procurement, UTC serves as the benchmark by which suppliers …

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GST (Goods & Services Tax)

Goods and Services Tax (GST) is a broad-based, value-added tax that is levied on most goods and services sold for domestic consumption. The GST is paid by consumers, however it is remitted to the government by the businesses selling the goods and services. In procurement, GST provides a more streamlined process by eliminating double taxation on supplies – now businesses …

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GMT (Greenwich Mean Time)

Greenwich Mean Time (GMT) is an internationally accepted time standard based on the solar time at the Royal Observatory in Greenwich, London – also known as Coordinated Universal Time (UTC). It is widely used across industries for determining accurate scheduling and timekeeping purposes. In terms of procurement, it can be used as a reference point to ensure that any international …

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ICO (Information Commissioners’s Office)

An Information Commissioner’s Office (ICO) is an independent governmental authority responsible for protecting personal data and upholding information rights in the UK. The ICO oversees data protection, freedom of information, and privacy-related initiatives to ensure organizations are compliant with relevant laws and regulations. As part of its responsibilities, it has the power to issue fines, audits, and orders to enforce …

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GDPR (General Data Protection Regulation)

The General Data Protection Regulation (GDPR) is an EU regulation that provides a set of standardised data protection laws which are designed to protect the personal data and privacy of individuals within the European Union. As a part of this regulation, procurement practices must ensure that any data they process is done so in a way that complies with GDPR’s …

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SDGs (Sustainable Development Goals)

Sustainable Development Goals (SDGs) are a set of 17 global goals set by the United Nations to address humanity’s most pressing and complex challenges. The SDGs are a call to action for all countries – both developed and developing – in order to create sustainable progress in terms of social, economic and environmental development. In the field of procurement, these …

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ISSB (International Sustainability Standards Board)

The International Sustainability Standards Board (ISSB) is an organization dedicated to promoting sustainability, environmental stewardship, and social responsibility in global trade. Its mission is to establish a set of standards for international sourcing that drive socially responsible behavior while reducing the negative impacts of international procurement on local communities. ISSB works with leading organizations and experts in the fields of …

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MSA (Master Service Agreement)

A Master Service Agreement (MSA) is a legally-binding contract between two parties that outlines the scope of services to be provided, expectations around payment terms and conditions, and procedures for resolution should a dispute arise. It serves as an overarching document that lays out the framework for how both parties will operate together when engaging in ongoing procurement activities. An …

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COP (Conference Of the Parties)

The Conference of the Parties (COP) is a formal sub-group of the United Nations Framework Convention on Climate Change (UNFCCC) that meets every year to discuss strategies for mitigating climate change. The COP is responsible for verifying and enforcing the commitments made by each party in order to reduce global emissions. During these meetings, policy makers from different countries come …

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ESRS (European Sustainability Reporting Standards)

The European Sustainability Reporting Standards (ESRS) is a set of guidelines designed to promote sustainable business practices and provide transparency in the procurement process. This framework ensures that organizations are adhering to ethical and socially responsible principles when engaging in procurement activities. The ESRS provides companies with a benchmark to ensure their operations are conducted in an environmentally friendly, socially …

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APAC (Asia-Pacific)

The Asia-Pacific (APAC) region is the most economically dynamic and fastest growing area in the world, accounting for over 45% of global procurement spending. As such, it has become increasingly important for businesses to understand and effectively navigate this complex market. APAC procurement focuses on buying goods and services from the diverse range of regions, countries, and cultures within the …

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GRI (Global Reporting Initiative)

The Global Reporting Initiative (GRI) is an international independent standards organization that helps organizations report on their economic, environmental, and social impact. GRI’s mission is to “empower organizations everywhere to understand and communicate their impacts for the highest benefit of all.” This is accomplished through the development and implementation of reporting frameworks which allow companies to measure, disclose, and manage …

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EV (Electric Vehicle)

Electric Vehicles (EVs) are vehicles powered by one or more electric motors, instead of an internal combustion engine. This shift away from traditional fuel-based vehicles is rapidly gaining popularity in the automotive industry due to the potential increase in efficiency and reduction in emissions. In the procurement sector, having an understanding of EV technology and its associated benefits is essential …

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PV (Photovoltaics)

Photovoltaics, or PV, is the term used to describe electricity generated through the use of solar cells or modules. PV technology is used to convert energy from the sun into usable electricity. PV systems have been around for decades and are becoming increasingly popular as they are a clean and renewable source of energy. The official business definition of PV …

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LATAM (Latin America)

LATAM is an acronym that stands for Latin America, and it refers to the region of the world spanning from Mexico in North America to the continent’s Southern tip. In terms of procurement, LATAM often refers to the sourcing of goods and services in Latin America, either domestically or cross-border. This region is becoming increasingly important for businesses due to …

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BRIC (Brazil, Russia, India & China)

BRIC is an acronym used in the context of business and procurement to refer to Brazil, Russia, India and China. These four countries are considered to be rapidly developing nations, offering a range of potential business opportunities, from sourcing materials to expanding market share. By incorporating these countries into procurement strategies, businesses can increase their global footprint and achieve strategic …

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CTO (Chief Technology Officer)

A Chief Technology Officer, or CTO, is a senior executive responsible for the company’s overall technology strategy. They oversee the development and implementation of all technological initiatives, ensuring that the organization is equipped with suitable resources to meet its objectives. The CTO is instrumental in developing innovative solutions that maximize efficiency and cost-effectiveness while introducing new technologies to sustain competitive …

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FOC (Free Of Charge)

FOC, or Free Of Charge, is a term used in procurement that refers to the delivery of a product or service without any additional cost. This type of transaction is most commonly used when receiving products or services as part of an existing contract or agreement. It is important to note that FOC’s may still require payment for certain required …

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EMEA (Europe, Middle-East & Africa)

EMEA (Europe, Middle East and Africa) is a geographic region encompassing 54 countries across these three areas. In the context of procurement, EMEA refers to a business strategy that involves procuring supplies, goods, or services from vendors in Europe, the Middle East, and Africa. This strategy helps businesses expand and diversify their global supply chain while also providing access to …

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COO (Chief Operating Officer)

The Chief Operating Officer (COO) is typically responsible for overseeing the operational activities of a company and making sure those operations are aligned with the organization’s strategic objectives. In the context of procurement, the COO is responsible for developing a strategy to optimize the procurement process and ensure that it delivers value. This includes analyzing supplier relationships, identifying opportunities for …

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CMO (Chief Marketing Officer)

EPEAT (Electronic Product Environmental Assessment Tool) is a procurement standard used by organizations to assess the environmental performance of IT products. It helps organizations make informed decisions about their purchases, taking into account factors such as the materials used in production, packaging, and disposal practices. The standard also helps organizations meet sustainability goals by encouraging the use of environmentally-preferable electronic …

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CFO (Chief Financial Officer)

Chief Financial Officer (CFO) is the executive responsible for providing strategic oversight and leadership in finance, accounting, budgeting, investments, risk management, and forecasting. The CFO’s role in procurement includes ensuring fiscal responsibility, establishing financial objectives, creating budgets to meet those objectives, and monitoring financial performance against those objectives. As a member of the senior management team, CFOs are highly influential …

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CIO (Chief Information Officer)

The Chief Information Officer (CIO) is a senior-level executive responsible for managing and overseeing the efficient procurement, storage and use of information within an organization. They are responsible for establishing data management strategies and systems that support organizational goals while also ensuring compliance with industry regulations and standards. CIOs work closely with other departments to ensure the smooth and timely …

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P2P (Procure-To-Pay)

Procure-to-Pay (P2P) is a business process that facilitates the procurement of goods and services from external vendors. It involves the entire lifecycle of purchasing, beginning with the identification of the need for an item, through the negotiation of terms, and finally to the point of payment. The P2P process provides visibility into the full supply chain by facilitating communication among …

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OGC (Office of General Counsel)

The Office of General Counsel (OGC) is responsible for providing expert legal guidance on procurement matters relating to purchasing goods and services. OGC ensures that all contracting processes are conducted in a compliant manner, including providing advice on contract drafting and negotiation, protecting the organization’s interests in disputes, and ensuring that all applicable laws and regulations are adhered too. Furthermore, …

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FMEA (Failure Mode and Effects Analysis)

Failure Mode and Effects Analysis (FMEA) is a risk management tool used in procurement to anticipate potential problems that may occur during the production or delivery of goods and services. By proactively identifying risks, FMEA helps organizations plan for contingencies and eliminate as much uncertainty as possible. The methodology consists of three key steps: systematically analyzing each component of the …

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1PL (First Party Logistics)

1PL, or First Party Logistics, is a type of business arrangement in which the vendor is responsible for all transportation and other logistics services. This includes activities such as sourcing vendors, managing inventory, distribution, and even shipment to customers. Through 1PL, the vendor assumes full responsibility for supply chain management so that businesses can minimize their costs, maximize efficiency, and …

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4PL (Fourth Party Logistics)

Fourth Party Logistics (4PL) is a business model that integrates all of the logistics and operations of an organization, including processes such as procurement, warehousing, distribution, shipping, and more. By utilizing a 4PL provider, businesses can access state-of-the-art supply chain solutions, developed from a strategic and holistic perspective. 4PL services are highly customizable to meet the individual needs of each …

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ABC (Approved budget for the contract)

ABC is a term used in the procurement process to denote the approved budget or financial figure for a contract. This figure is determined by conducting a cost assessment of the project or contract and setting an appropriate budget amount, based on the criteria outlined in the procurement document. The ABC must be met or exceeded during the bidding process …

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ACCO (Agency Chief Contracting Officer)

ACCO stands for Agency Chief Contracting Officer, and is a position in the procurement process. The ACCO is responsible for leading all contracting activities within their assigned agency, ensuring compliance with all applicable laws and regulations, and managing the organization’s resources to ensure highest value for taxpayer money. The ACCO works closely with operational departments to develop comprehensive and cost-effective …

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ADA (Americans with Disabilities Act)

The Americans with Disabilities Act (ADA) is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and businesses that are open to the public. As it relates to the procurement process, ADA requires businesses to ensure their goods and services are accessible to people with disabilities. This includes …

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ANSI (American National Standards Insitute)

The American National Standards Institute (ANSI) is a non-profit organization that facilitates the development of voluntary industry standards for the procurement and product manufacturing process. ANSI’s standards help to ensure consistency across businesses while providing companies with resources and support to make sure they are adhering to applicable regulations. By promoting greater efficiency, compliance, and best practices, these standards provide …

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AD (Administrative Directive)

Administrative Directives (ADs) are official statements from a governmental body or agency that provide guidelines and instructions related to the procurement process. This includes everything from outlining specific tendering processes, to providing guidance on contract management, to implementing quality control measures for the procurement cycle. ADs are crucial tools in ensuring that public procurement processes remain transparent and compliant with …

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APP (Annual Procurement Plan)

An Annual Procurement Plan (APP) is a strategic document that outlines an organization’s objectives and strategies for procurement over a one-year period. It provides a framework for evaluating each potential purchase, enabling stakeholders to assess important factors such as timeliness, cost, quality and sustainability. The APP serves as a useful tool to ensure the organization obtains goods and services in …

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ASTM (American Society for Testing and Materials)

The American Society for Testing and Materials (ASTM) is an international standards organization that provides technical and scientific standards to help facilitate the procurement process. ASTM standards ensure a consistent level of quality across products and are used to test and measure materials, performance, and chemical properties. By using these standards, purchasers and vendors can clearly define expectations when entering …

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BCPG (Board of Commissioners of public grounds and buildings)

The Board of Commissioners of Public Grounds and Buildings (BCPG) is a regulatory organization responsible for the efficient management and procurement of public grounds and buildings. The BCPG works to maintain quality standards and ensure safe, secure, and cost-effective facilities in compliance with state and federal laws. The organization has stringent standards that must be met by all parties involved …

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BSBO (Bureau of Small Business Opportunities)

The Bureau of Small Business Opportunities (BSBO) is a business unit within the United States Department of Commerce that provides procurement services and resources to small businesses. By leveraging its expertise in contract management, contract negotiation, and supplier relations, the BSBO helps small businesses gain access to the markets necessary for them to grow and be successful. The BSBO team …

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LEED (Leadership in Energy and Environmental Design)

Leadership in Energy and Environmental Design (LEED) is a worldwide certification system that promotes sustainable construction, operations and maintenance practices. The LEED rating system measures the environmental performance of a building, awarding points based on criteria such as energy efficiency, water conservation, indoor air quality and materials selection. LEED-rated buildings use fewer resources, save money over time, improve occupant health …

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MSDS (Materials Safety Data Sheet)

A Material Safety Data Sheet (MSDS) is a document that communicates crucial information about hazardous materials and chemicals used in business operations. It is designed to help procurement, shipping, storage, and handling personnel identify, understand, and manage the risks related to the product. The MSDS outlines the characteristics of the material and provides hazard data, emergency procedures, firefighting measures, and …

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NMSDC (National Minority Supplier Development Council)

Founded in 1972, the National Minority Supplier Development Council (NMSDC) is a non-profit organization dedicated to advancing business opportunities for minority-owned companies. It accomplishes this mission by connecting corporate America with qualified minority suppliers through its influential network of regional affiliates and corporate members. This allows NMSDC-certified suppliers to increase their visibility in the procurement process and gain access to …

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OJEU (Official Journal of the European Union)

The Official Journal of the European Union (OJEU) is the primary source of procurement contracts and tenders for public authorities in the European Union. All EU-related public contracts with an estimated value over a certain threshold are required to be published in the OJEU in order to be compliant with regular EU procurement rules. This ensures that all eligible contract …

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OMB (Office of Management and Budget)

The Office of Management and Budget (OMB) serves as the President’s chief policy advisor in setting out federal budget policies and the management of public funds. Within the executive branch, OMB is responsible for developing, coordinating and implementing government-wide financial policies related to procurement, budgeting, accounting, finance, and management systems. OMB also works with other agencies to ensure that regulations …

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OSHA (Occupational Health and Safety Agency)

The Occupational Safety and Health Administration (OSHA) is a federal agency of the United States Department of Labor dedicated to assuring safe and healthful working conditions for workers. OSHA’s role in procurement is to ensure that goods and services purchased comply with applicable safety standards and regulations. As such, all procured products should meet minimum requirements for workplace safety. Contractors …

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GNP (Gross National Product)

Gross National Product (GNP) is a measure of an economy’s total economic output. It reflects the combined value of all goods and services produced by a nation within a given period, typically over the course of one year. In the context of procurement, GNP is important to consider because it can provide insight into the economic environment of a country …

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OSS (Online Service System – Service used by IES to report system issues)

OSS (Online Service System) is a web-based platform used by Information Exchange Services (IES) to manage customer service requests, report system issues and track the progress of resolution. It allows customers to access real-time data, interact with staff and benefit from a wide range of services in an efficient manner. OSS provides a staggering level of visibility on all processes, …

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PaaS (Platform as a Service)

Platform as a Service (PaaS) is an integrated technology platform that provides an environment for application development, deployment, and management. PaaS enables organizations to focus on building applications without the need to manage or maintain the underlying infrastructure, including hardware, operating systems, networking, storage, and other associated components. By leveraging the scalability of cloud computing, PaaS enables businesses to quickly …

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PBITS (Project Based Information Technology Consulting Services)

Project-Based Information Technology Consulting Services (PBITS) is defined as a professional relationship between an organization and an external IT consulting firm focused on the delivery of specific IT projects. Through PBITS, organizations can access specialized technical expertise to successfully complete specific tasks or objectives. The consulting firm provides professional services with project management capabilities, technology integration, application development, and support …

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PEST (Political, Economic, Social and Technological Environments)

In the field of procurement, PEST is an acronym used to define the Political, Economic, Social and Technological environments in which a project takes place. It is a methodology for assessing the external factors that may influence the success or failure of a project. By understanding the impact of these different forces, organizations can develop strategies to capitalize on opportunities …

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PI (Price Index)

The Price Index (PI) is a metric used in procurement to measure and monitor the relative price performance of the items being purchased. It estimates the change in price for a specific item or set of items over time. This index serves as a barometer that can be used to identify market trends, compare vendor prices, and predict future purchasing …

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PMT (Portfolio Management Tool)

PMT (Portfolio Management Tool) is a cloud-based system designed for the procurement process. It provides an integrated platform to analyze portfolio performance, drive decision-making, track projects, and manage risks associated with spending. PMT enables organizations to effectively manage sourcing activities through efficient supplier management and risk identification. The tool also allows users to monitor spend across various departments and view …

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PPCA (Profit, Price & Cost Analysis)

Profit, Price and Cost Analysis (PPCA) is a business tool used in procurement to assess an item’s overall value. It involves examining the projected profit and revenue generated by a product or service, the price of acquisition, and the cost of production over its life cycle. PPCA helps procurement professionals understand the economic dynamics of the item under consideration in …

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PPE (Personal protective equipment)

Personal protective equipment (PPE) refers to any clothing, equipment, or device designed to provide a layer of protection against various hazards encountered in the workplace. Such hazards can include physical, electrical, heat, chemicals, biohazards, and airborne particulate matter. PPE should be used in accordance with safety regulations and guidelines for individual workplaces and industries to ensure that individuals are adequately …

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PPV (Purchace Price Variance)

Purchase Price Variance (PPV) is a metric used in procurement to measure the difference between the expected and actual cost of materials purchased. It is typically calculated using the formula (Actual Cost – Expected Cost)/Expected Cost, and is expressed as a percentage. PPV helps to identify when goods are being purchased at prices higher than expected, which can be an …

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STSD (Single Transaction Summary Document)

The Single Transaction Summary Document (STSD) is a document that summarizes an individual procurement transaction. This document is used by all interested parties in the procurement process to track the progress of, and effectively manage transactions between buyers and suppliers. The STSD provides critical detail such as transaction type, agreement details, products or services purchased, cost breakdown and payment information, …

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UNSPSC (United Nations Standard Products)

The United Nations Standard Products and Services Code (UNSPSC) is a procurement-focused classification system developed by the United Nations. It provides a standardized way for buyers and suppliers to quickly identify, search, and share the goods and services that they need in order to complete successful purchases. With UNSPSC, buyers and suppliers alike benefit from improved speed and accuracy when …

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CLM (Contract Lifecyle Management)

Contract Lifecycle Management (CLM) is an integrated strategy for managing contracts from commissioning to completion. It comprises a set of coordinated, inter-related activities and processes used throughout the lifecycle of a contract to ensure the effective management, enforceability, and compliance of mutually established contractual obligations. CLM covers all aspects of contract management from risk assessment to governance and dispute resolution, …

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PWR (Prevailing Wage Rate)

The Prevailing Wage Rate (PWR) is a rate set by the government for certain types of occupations or job roles. It is an important factor in procurement as it serves to protect businesses competing for contracts from unfair wage and labor practices. PWR helps ensure that all employees are appropriately compensated for their work, which can help lead to greater …

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QA (Quality Assurance)

Quality Assurance (QA) in procurement is a system of continuous improvement that ensures the quality of goods and services purchased from suppliers for companies. QA processes allow organizations to assess their suppliers and verify that the products they are buying meet the specified standards and regulations. It involves reviewing current practices, analyzing potential deficiencies, and developing strategies to ensure top-notch …

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QC (Quality Control)

Quality Control (QC) is a comprehensive system of procedures, standards and processes that ensure that products produced by a company meet or exceed specified requirements. QC is essential for maximizing customer satisfaction and the quality of a company’s output, ensuring that products are fit for purpose. QC processes involve tasks such as product testing, inspection, product certification and confirmation of …

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QMS (Quality Management System)

A Quality Management System (QMS) is a formalized system used to manage and review the quality of goods during the procurement process. It is designed to ensure compliance with legal, regulatory, and contractual requirements as well as any customer-specific expectations. A QMS follows a set of standard operating procedures and focuses on continuous improvement in order to deliver quality services …

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QPL (Qualified Products List)

Qualified Product Lists (QPLs) are a crucial part of the procurement process, providing businesses with assurance that they are buying qualified and safe products. QPLs contain an officially approved and regularly updated list of goods or services that can be used to fulfill a project. All products are subject to rigorous testing in order to be approved for the list; …

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RFC (Request for Comment)

The term Request for Comment (RFC) is used in business and procurement to describe the formal process of submitting an official request for feedback or comment from interested parties. This feedback is then used to assess the suitability of a proposed solution before it is implemented. RFCs are often issued in situations where stakeholders have conflicting interests or opinions, to …

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RFI (Request For Information)

Request For Information (RFI) is an officially recognized procurement method used by organizations in order to gather necessary information from external sources. Through the RFI process, organizations solicit vendor responses that provide valuable insight on potential products, services, and solutions as they relate to their needs. By doing so, organizations are able to make well-informed decisions when selecting a service …

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RFID (Radio-Frequency Identification)

Radio-Frequency Identification (RFID) is an automated technology used in the procurement process to track and manage the movement of goods and inventory. RFID systems use radio frequency waves to identify, locate, and process data from tagged objects without relying on line-of-sight scanning or physical handling. This technology helps streamline the supply chain by providing businesses and organizations with real-time visibility …

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RFP (Request For Proposal)

A Request For Proposal (RFP) is a formal, structured solicitation from a business or organization for goods and/or services. The RFP outlines the requirements for a potential vendor to submit a proposal with their cost estimates and technical specifications in order to be considered for an award of contract. It provides vendors with key information about the products or services …

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RFQ (Request For Quotations)

A Request for Quotations (RFQ) is a formal solicitation from buyers to suppliers for the purpose of obtaining price quotes and proposals. An RFQ typically includes a detailed description of the product/service or materials requested, along with specific instructions for submission and evaluation. Through the RFQ process, buyers are able to compare numerous suppliers in order to obtain the best …

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RFT (Request for Tender)

Request for Tender (RFT) is a formal process by which organizations seek bid proposals from vendors for a specific product or service. The purpose of the RFT is to ensure that an organization obtains the best product or service at the most competitive price. Through the RFT process, vendors can provide detailed information about their products and services, enabling the …

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ROCE (Return on Capital Employed)

Return on Capital Employed (ROCE) is a key metric used to measure the financial performance of businesses in the procurement sector. It calculates the amount of profit generated as a percentage of the amount of capital employed by a business in its operations. This ratio helps businesses identify how efficiently they are using their available capital and gives insight into …

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RoHS (Restriction of Hazardous Substances)

The Restriction of Hazardous Substances (RoHS) is a European Union directive aimed at reducing the use of hazardous materials in electrical and electronic equipment. It applies to all equipment placed on the market within the EU/EEA, including products sold online. Procurement teams must be aware of these regulations when selecting suppliers and sourcing products, as violation of RoHS mandates can …

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ROI (Return On Investment)

Return on investment (ROI) measures the effectiveness of an investment by ascertaining the net gain or loss relative to the amount of money invested. In procurement, this typically refers to the cost savings achieved through a particular purchase compared to the initial cost. This calculation helps organizations and businesses assess the efficiency and potential profitability associated with different investments and …

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RONA (Return on Net Assets)

Return on Net Assets (RONA) is a metric used to measure the effectiveness of a company’s procurement activities. It is calculated by taking the net profits of a business divided by the total assets of the same business. RONA is a valuable tool for gauging the profitability of a business’s purchasing efforts and can be used to identify opportunities for …

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RPI (Retail Price Index)

The Retail Price Index (RPI) is an official index used to measure changes in the prices of goods and services purchased by consumers. It serves a number of important purposes in the business world, including helping businesses monitor their costs of production, setting inflation rates for wages, and providing key data points for contract negotiations. Used in procurement, the RPI …

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RSIA (Road safety impact assessment)

Road Safety Impact Assessment (RSIA) is a professional procedure that evaluates the potential impact of a given project or initiative on the safety of road users. By performing an RSIA, decision makers are able to determine the likelihood and severity of potential risks posed by said project or initiative. The assessment should identify existing hazards, evaluate proposed countermeasures, and assess …

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RTKL (Right to Know Law)

The Right-to-Know Law (RTKL) is a law that provides business owners and members of the public with access to public records containing information related to procurement activities. RTKL ensures that all documents generated as part of the procurement process are made available upon request. This includes records such as contracts, bids, invoices, purchase orders, vendor lists, and other relevant documents. …

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RTP (Route To Prcourement)

Route to procurement (RTP) is a formal term used in business that outlines the process of acquiring goods and services. It includes requirements for analyzing potential suppliers, creating a plan of action for selection and negotiation, and ultimately signing a contract or purchase order. RTP is an organized, systematic approach to making sure all available options are researched and evaluated …

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S&OP (Sales & Operations Planning)

Sales & Operations Planning (S&OP) is an essential part of procurement operations in many companies. It is a systemic process that helps to align the tactical goals of sales, operations, finance, and management teams with a unified strategy for meeting consumer demand. S&OP leverages data insights to balance supply and demand on both short-term and long-term scales, allowing businesses to …

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S2C (Source-To-Contract)

S2C, or Source-to-Contract, is the complete procurement process from sourcing and selecting suppliers to signing contracts. It delivers measurable value to businesses through efficiency gains and cost savings. The S2C approach involves a multi-phase process which begins with preliminary market research. This informs the organization’s strategic objectives, requirements, and selection criteria for potential suppliers. After vendor selection, negotiations occur to …

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S2P (Source-To-Pay)

Source-To-Pay (S2P) is a comprehensive, end-to-end procurement process from supplier selection to the payment of invoices. It involves the coordination and control of all activities related to generating purchase orders, receiving goods and services, paying associated invoices, and obtaining relevant documents from vendors. By streamlining and automating procurement processes, S2P can reduce costs and increase efficiency by minimizing manual tasks …

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SaaS (Software As A Service)

Software as a Service (SaaS) is a type of cloud computing software delivery model that allows procurement services to access applications over the Internet. It eliminates the need for on-premise software installations and updates, allowing users to rent or subscribe to a particular application instead of purchasing it outright. With SaaS, all hardware and software needs are managed remotely by …

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SAD (Single administrative document)

The Single Administrative Document (SAD) is an official document utilized by customs authorities in the European Union to facilitate the import and export of goods within and from EU member states. This document is required for any international trade transactions, including those of a commercial nature, as it identifies the movement between parties and serves as proof that taxes have …

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SB/SBE (Small Business/Small Business Enterprise)

Small Business (SB) and Small Business Enterprise (SBE) refer to government-certified businesses of a certain size, as defined by the US Small Business Administration. These businesses meet the criteria for a small business based on factors such as number of employees, revenue, yearly income, and other criteria. These businesses must adhere to specific procurement guidelines in accordance with the values …

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SBA (United States Small Business Administration)

The United States Small Business Administration (SBA) is a government agency that is charged with providing assistance to small businesses and promoting their growth and success. The SBA provides numerous services to help entrepreneurs launch and manage their businesses, including loan guarantees and business counseling, as well as access to various contracts and grants designed to increase the economic opportunities …

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SBPI (Small Business Procurement Initiative)

The Small Business Procurement Initiative (SBPI) is a federal program which encourages the use of small businesses by providing incentives for contracting agencies to work with small businesses. SBPI encourages eligible businesses to offer competitively priced products or services that meet the requirements of a particular project, and incentivizes procurement officers to give preference to such businesses. Through the use …

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SBR (Supply Base Reduction)

Supply Base Reduction (SBR) is a business strategy employed in procurement to streamline and optimize a company’s supplier relationships. The primary goal of SBR is to reduce the number of suppliers in an organization’s vendor base, while still ensuring that the quality of goods and services remains consistent. By reducing the number of suppliers, companies can gain better visibility into …

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SCSC (State Civil Service Commission)

The State Civil Service Commission (SCSC) is an independent body charged with the responsibility of ensuring that public employees are hired, evaluated, compensated, and promoted on the basis of merit. It monitors all civil service activities conducted by state agencies to guarantee objectives of fairness, inclusiveness, and equity. Additionally, it administers a rigorous examination process to ensure the best applicants …

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SDB (Small Diverse Business)

Small Diverse Business (SDB) is a term used to describe businesses owned by minorities, women, veterans, and people with disabilities who wish to participate in the procurement process. SDB’s are typically smaller-scale companies or organizations that demonstrate exceptional skill and dedication in their respective fields. By doing business with SDB’s, governments and other organizations can foster economic growth and help …

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SDG (Sustainability development goals)

Sustainability Development Goals (SDGs) are a set of 17 universal objectives that were adopted by all United Nations’ countries in 2015 as a way to address the global challenges facing humanity. The SDGs provide a roadmap for governments, businesses and citizens worldwide to take practical steps towards building a sustainable future. In procurement, it means making conscious decisions about the …

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SDVBE (Service-Disabled Veteran-Owned Business Enterprise)

A Service-Disabled Veteran-Owned Business Enterprise (SDVBE) is an organization that is owned and operated by a service-disabled veteran in the United States. These businesses are a unique type of small business, providing opportunities for economic development for disabled veterans and their families. To be eligible to qualify as a SDVBE in government procurement, organizations must meet certain criteria prescribed by …

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SDVOSB (Service-Disabled Veteran-Owned Small Business)

SDVOSB stands for Service-Disabled Veteran-Owned Small Business and is a designation that helps identify businesses owned by veterans who have been disabled while serving. SDVOSBs are eligible to receive federal government contracts as part of the small business set-aside program in the United States. This designation not only provides these veteran-owned businesses with access to more contract opportunities but also …

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SIC (Standard Industrial Classification )

The Standard Industrial Classification (SIC) is a system used to classify industries by a four-digit code. It was developed by the U.S. government in the 1930s, and it reflects the primary activity of a business or organization in order to categorize and track data for analysis and reporting purposes. This unified classification system is used by different sectors of government …

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SKU (Stock Keeping Unit)

A Stock Keeping Unit (SKU) is a business term used to denote unique product specifications within inventory procurement. SKUs are used by organizations to track and manage products in their inventory, enabling accurate and efficient management of stock levels. By assigning an individual SKU to every item in your catalogue or inventory, it becomes easier to identify, differentiate, and organize …

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SLA (Service Level Agreement)

A Service Level Agreement (SLA) is a legally binding contract between a service provider and a customer that specifies the services and levels of service to be provided. The SLA outlines the responsibilities of each party, the duration of the agreement, any standards or requirements, and the procedures for resolving disputes and conflicts. The SLA serves as a clear roadmap …

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SMART (Specific, Measureable, Achievable, Realistic, Time-bound)

SMART is an acronym used in procurement and other business activities to ensure objectives are specific, measureable, achievable, realistic, and time-bound. By adhering to the SMART framework, organizations can set attainable goals and identify milestones that will enable them to monitor progress in order to stay on track and reach their ultimate objectives. This approach provides transparency into the status …

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SME (Subject Matter Expert)

Subject Matter Experts (SMEs) are professionals who have specialized knowledge and experience in a particular field or sector. In the context of procurement, SMEs are consulted to assess and validate product requirements and provide guidance on the most cost-effective solutions. By leveraging their expertise, companies can ensure that their selection criteria are valid and reliable, while ensuring the successful implementation …

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SMEs (Small & Medium-sized Enterprises)

Small & Medium-sized Enterprises (SMEs) are businesses with fewer than 250 employees and an annual turnover of less than €50 million. SMEs often face particular challenges when procuring goods and services, due to their size and limited resources. As such, they require dedicated strategies for efficient procurement procedures to ensure they can access the best possible deals. With this in …

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SOW (Statement Of Work)

A Statement of Work (SOW) is an official document used in the procurement process that outlines the expectations and scope of a given project. It is typically prepared by the contracting party to serve as a blueprint for contractors to follow, detailing all deliverables required, associated costs and deadlines. The SOW provides the framework for all parties involved to ensure …

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SRM (Supplier Relationship Management)

Supplier Relationship Management (SRM) is an official business process used by organizations to improve the relationship between a buyer and its suppliers. It focuses on creating better relationships between buyers and suppliers that result in increased business performance, improved quality of goods and services, satisfaction in supplier partnerships, and cost savings for the organization. SRM is a critical part of …

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SSN (Social Security Number)

The Social Security Number (SSN) is a nine-digit code issued by the United States government to individuals for the purpose of tracking their employment and financial transactions. In procurement, SSNs are used to verify either the identification or the eligibility of individuals for contracts or other services being procured. It is important to use SSNs responsibly and ethically to ensure …

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STS (Single Transaction Summary)

STS stands for Single Transaction Summary, a document used in procurement to provide an overview of an entire transaction within one report. A STS report can be generated at any time, providing detailed information about the cost and scope of goods or services included in a specific transaction. The purpose of this document is to give stakeholders a comprehensive view …

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