RFX Procurement Solutions: A Holistic Procurement Approach
RFX Procurement Solutions: A Holistic Procurement Approach Unlocking the power of efficient procurement is a game-changer for businesses looking to stay ahead in today’s competitive market. And one crucial tool that can revolutionize your procurement process is RFX. But what exactly is RFX, and how can it benefit your business? In this blog post, we will delve into the world …
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RFP Evaluation Software: Assessing Proposal Excellence
RFP Evaluation Software: Assessing Proposal Excellence Are you tired of sifting through stacks of proposals, trying to determine which one is the winner? Wish there was a way to streamline and simplify your RFP evaluation process? Well, look no further! Enter: RFP Evaluation Software. This game-changing tool is here to revolutionize how organizations assess proposal excellence. In this blog post, …
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RFI Document Management: Organizing Information Requests
RFI Document Management: Organizing Information Requests Are you drowning in a sea of paperwork, struggling to keep track of countless information requests? Look no further! RFI document management is here to save the day. Whether you’re a small business or a large corporation, effectively organizing and managing your RFIs (Request for Information) is crucial for streamlining operations and ensuring nothing …
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RFQ Cost Analysis Software: Analyzing Quotation Costs
RFQ Cost Analysis Software: Analyzing Quotation Costs Are you tired of manually analyzing quotation costs and spending hours crunching numbers? Do you want to streamline your RFQ (Request for Quotation) process and make data-driven decisions with ease? Look no further! RFQ cost analysis software is here to revolutionize the way you analyze quotation costs. In this blog post, we will …
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Achieving Supplier Excellence with the Pareto Principle: A Guide to Strategic Procurement
Achieving Supplier Excellence with the Pareto Principle: A Guide to Strategic Procurement Are you struggling to get the most out of your procurement process? Do you wish there was a strategic approach that could improve supplier performance and drive better results? Look no further than the Pareto Principle! This principle, also known as the 80/20 Rule, can be applied to …
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What is a Dutch E-auction? Definition
What is a Dutch E-auction? Definition A Dutch auction, also known as an open ascending price auction, is a type of auction in which the initial price is set by the seller and then decreases until a buyer is found. The name “Dutch” auction comes from the fact that this type of auction was first used in the Netherlands in …
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What is an Invitation To Tender? Definition
What is an Invitation To Tender? Definition An Invitation To Tender (ITT) is a formal invitation issued by a company to potential suppliers to request the submission of a proposal for the supply of goods or services. The ITT sets out the company’s requirements and evaluation criteria that will be used to select the winning supplier. ITTs are commonly used …
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What is Global Sourcing? Definition
What is Global Sourcing? Definition Global sourcing is the procurement of goods and services from suppliers in multiple countries. It’s a type of sourcing that has become increasingly popular among businesses in recent years as a way to optimize costs and access new markets. The global sourcing definition can be broken down into three main components: -Procurement: The act of …
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What is an Invitation To Bid? Definition
What is an Invitation To Bid? Definition If you’re in the construction industry, it’s likely that you’ve come across the term “invitation to bid” or “ITB.” But what exactly is an ITB? In short, an invitation to bid is a formal document that a construction company issues to potential contractors that they are considering for a project. The document outlines …
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What is a Japanese Auction? Definition
What is a Japanese Auction? Definition You may have heard of Japanese auctions before, but what are they exactly? In short, a Japanese auction is an auction where the items for sale are not known in advance. This type of auction is also known as a reverse auction, blind auction, or sealed-bid auction. So, how does it work? In a …
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What is Open Tendering? Definition
What is Open Tendering? Definition Open tendering is the process of inviting bids for a project or goods/services in an open and transparent manner. The details of the project or requirement are publicly advertised, and any entity meeting the required qualifications can submit a bid. The open tendering process is designed to promote competition and level the playing field for …
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What is Offer, Tender, Submission? Definition
What is Offer, Tender, Submission? Definition When it comes to business, the term “offer, tender, submission” (OTS) is used a great deal. But what does it actually mean? An offer, tender or submission is a formal document that outlines an organization’s proposal for a project or contract. It includes detailed information about the company’s capabilities, as well as its terms …
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What is a Request For Information? Definition
What is a Request For Information? Definition A Request for Information (RFI) is a type of document used in business that allows potential vendors to submit information about their products or services in order to be considered for a project or contract. An RFI can also be issued by a company internally in order to gather information from different departments …
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What is a Request For Proposal? Definition
What is a Request For Proposal? Definition A request for proposal, or RFP, is a document that businesses use to solicit proposals from potential vendors. The RFP outlines the requirements for the project and provides background information on the business. The RFP process can be used for a variety of projects, including but not limited to: -Web design or development …
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What is a Request For Quotation (RFQ)? Definition
What is a Request For Quotation (RFQ)? Definition A request for quotation, also known as an RFQ, is a type of invitation to bid that is commonly used in the procurement process. It is a document that is sent out to potential suppliers, asking them to provide a quote for the goods or services that are required. The RFQ will …
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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 service preferences, and opinions about …
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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 offers. It can be used …
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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 will explore the definition of …
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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 strategies that can be applied …
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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 that can be bought or …
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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 don’t produce too little product, …
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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 for a contract. It allows …
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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, it allows businesses to keep …
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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 procurement process because it allows …
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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 in order to function effectively. …
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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 the request for proposal (RFP) …
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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 there are many potential vendors/suppliers …
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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 stages to consider, from pre-tender …
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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 is to ensure that the …
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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 obtain the business of a …
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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 suppliers and the procuring entity …
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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 departments are working together to …
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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 first register with the auction …
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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 to a request for proposal …
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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 a bid bond, is a …
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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 engineering as a way to …
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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 responsible for buying advertising space. …
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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 of work, together with its …
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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 are conducted in real-time and …
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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 bid blindly, without knowing what …
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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 is paperless, which means there …
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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 sells to its customers. A …
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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 way to vet and compare …
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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 to prepare their tender. In …
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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 and disadvantages of insourcing so …
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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 a premium price. The shareholders …
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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 a premium price. The shareholders …
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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 and disadvantages of insourcing so …
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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 exactly is a bid, and …
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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 terms, delivery times, and warranties. …
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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 open to suppliers that meet …
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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 it themselves. The requisitioner submits …
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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 statement about a general truth. …
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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 suppliers for the products or …
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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, and ultimately making the purchase. …
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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 companies to put their best …
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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 can be advantageous for companies …
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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 at the cash that is …
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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 disposal. This makes it different …
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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 salaries. The reason it’s called …
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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 of WLC is to enable …
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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 food and clothing. So, what …
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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 raw materials, components, and supplies …
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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, but all share the common …
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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 the cost of materials to …
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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 with the offer and submit …
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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 manner that is consistent with …
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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 when making business decisions. In …
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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 or services before any work …
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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 areas or use for other …
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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 there is uncertainty about the …
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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 type of pricing seems straightforward, …
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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 COGS is to show the …
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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 types of cost models, and …
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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 post, we will explore the …
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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, seasonality analysis, and regression analysis. …
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What is Third Party Risk Management? Definition
What is Third Party Risk Management? Definition First, let’s start with understanding what risk management is. Risk management is the process of identifying, assessing, and controlling risks. In other words, it’s a way to protect yourself and your business from potential liabilities. Now that we have a general understanding of risk management, let’s talk about third party risk management (TPRM). …
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What is a Third Party? Definition
What is a Third Party? Definition A third party is any person or entity that is not a party to a contract or agreement. The term is most commonly used in reference to business contracts, such as when two companies agree to work together on a project. A third party can also be an individual, such as when a person …
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What is Category Management? Definition
What is Category Management? Definition Category management is the process of managing a product category as a business unit. This includes understanding consumer needs and desires, analyzing category sales data, developing a category strategy, and executing that strategy to grow sales and profits. Category management is a key part of retailing, as it allows retailers to optimize their product mix …
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What is Invitation To Negotiate? Definition
What is Invitation To Negotiate? Definition You may have heard the term “Invitation To Negotiate” before, but what does it actually mean? In short, it is an invitation from one party to another to begin negotiations. This can be in regards to anything from a business deal to a contract. In this blog post, we will explore the definition of …
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What is Best Value? Definition
What is Best Value? Definition The term “best value” is often used in the business world, but what does it actually mean? In this blog post, we will explore the definition of best value and how it can be applied in different contexts. We will also look at some real-world examples to better understand this concept. What is value? Value, …
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What is Award Criteria? Definition
What is Award Criteria? Definition Award criteria are the standards by which an award is given. They are the guidelines that judge whether an application deserves an award, and if so, how much. The award criteria for a grant may be different from the award criteria for a scholarship, but both will have specific guidelines that must be met in …
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What is Source-To-Contract (S2C)? Definition
What is Source-To-Contract (S2C)? Definition Source-To-Contract, or S2C, is a business process that encompasses the entire lifecycle of a contract. It begins with the sourcing of goods or services and ends with the final contract between the buyer and supplier. In between, there are many steps and negotiation phases. S2C can be divided into three main stages: 1. The Request …
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What is a Sealed Offer? Definition
What is a Sealed Offer? Definition A sealed offer is a legal contract in which the terms are agreed to and signed by both parties, but the contract is not yet binding. Once the offer is accepted, it becomes a binding contract. A sealed offer can be used in many situations, but it is most commonly used in real estate …
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What is an Approval Workflow? Definition
What is an Approval Workflow? Definition An approval workflow is a process in which a document or request is passed through a series of steps before it is finally approved. Each step in the workflow is typically performed by a different individual or group, and each step must be completed before the next one can begin. The purpose of an …
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What is an Approved Supplier? Definition
What is an Approved Supplier? Definition In business, the term “approved supplier” is used to refer to a supplier that has been vetted and pre-qualified by a company or organization. The approval process usually involve some form of due diligence, such as a review of the supplier’s financials, quality control procedures, and/or references. An approved supplier list (ASL) is a …
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What is Artificial Intelligence (AI)? Definition
What is Artificial Intelligence (AI)? Definition Artificial intelligence is a process of programming a computer to make decisions for itself. This can be done through a number of methods, but the most common is through the use of algorithms. Algorithms are a set of rules that are followed in order to complete a task. They are what allow us to …
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What is Best Practice? Definition
What is Best Practice? Definition Best practice is defined as doing something the way it is supposed to be done. It is based on the knowledge and experience of those who have gone before us. In order to achieve best practice, we must constantly strive to learn and improve. We must also be willing to share our knowledge so that …
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What is Direct Spend? Definition
What is Direct Spend? Definition Direct spend is a term used in supply chain management that refers to the total amount of money that a company spends on goods and services that are directly related to its production process. This includes raw materials, components, and labor. In other words, direct spend is the money that a company spends on the …
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What is an Expression Of Interest? Definition
What is an Expression Of Interest? Definition Are you interested in applying for a job, but not sure how to get started? An Expression of Interest (EOI) may be just what you need. An EOI is a short document that shows your intent to apply for a particular job or project. It’s usually one page long, and includes your contact …
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What is a Key Performance Indicator? Definition
What is a Key Performance Indicator? Definition A key performance indicator (KPI) is a metric used to evaluate an organization, business unit, or individual’s performance. A KPI measures progress and success in relation to stated objectives. There are many different types of KPIs, and each organization will have different KPIs based on their specific goals and objectives. However, all KPIs …
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What is a Key Supplier? Definition
What is a Key Supplier? Definition In business, the term “key supplier” is used to describe a company that provides an essential product or service to another company. A key supplier is typically a strategic partner that is essential to the success of the business. A key supplier may be a producer of raw materials, a manufacturer of finished products, …
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What is Competitive Procedure With Negotiation? Definition
What is Competitive Procedure With Negotiation? Definition Competitive procedure with negotiation is a type of public procurement procedure, under EU law, whereby the contracting authority (CA) conducts a negotiated procedure after having conducted a competition among potential contractors. The main difference between this procedure and the other types of procedures is that, after the competition has been conducted, the CA …
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What is Machine Learning (ML)? Definition
What is Machine Learning (ML)? Definition Machine learning is a subset of artificial intelligence (AI) that provides computers with the ability to learn and improve from experience without being explicitly programmed to do so. The term “machine learning” was coined in 1959 by Arthur Samuel, an American computer scientist who pioneered the field of AI. Machine learning algorithms build models …
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What is a Request For Quote (RFQ)? Definition
What is a Request For Quote (RFQ)? Definition In business, the request for quote, or RFQ process, is when a company solicits bids from vendors for a product or service. The RFQ usually follows an RFP (request for proposal), in which the company has already determined its needs and is now looking for the best possible price. RFQs are commonly …
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What is a Request For Proposal (RFP)? Definition
What is a Request For Proposal (RFP)? Definition A request for proposal, or RFP, is a document that solicitations from suppliers in order to obtain pricing and other important information about products or services. The RFP process is used by businesses in many industries, including advertising, architecture, construction, and information technology. In order to create an effective RFP, businesses must …
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What is a Purchase Order Form? Definition
What is a Purchase Order Form? Definition A purchase order is a request that initiates the buying process of goods or services. It’s a formalized request that includes all the important details of the transaction, such as what’s being bought, how much it costs, and when delivery is expected. A purchase order form is the document that outlines all these …
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What is Selection Criteria in Procurement? Definition
What is Selection Criteria in Procurement? Definition The world of procurement is filled with jargon and technical terms that can be difficult to understand. In this blog post, we will demystify one of these terms: selection criteria. In the most basic sense, selection criteria are the guidelines that a procurement team uses to choose between different suppliers. But there is …
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What is RFx? Definition
What is RFx? Definition RFx stands for Request for (anything). It’s a generic term used in procurement for the process of inviting suppliers to submit a proposal or quotation for the supply of goods or services. The RFx process is used to help organizations select the best supplier to meet their requirements. It can be used for both simple and …
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