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What is Lean Procurement? Definition Lean procurement is a systematic approach to procuring goods and services. The aim of lean procurement is to eliminate waste, increase efficiency, and improve quality. In lean thinking, waste is anything that does not add value to the customer. This includes activities such as transportation, storage, inventory, motion, waiting, overproduction, […]

What is List Price? Definition You may have seen the term “list price” before but not really understood what it meant. In short, list price is the starting point for negotiation in business. It’s the full price that a product or service is advertised for, without any discounts or promotions applied. For example, if a […]

What is Logistics? Definition You’ve probably heard the term “logistics” before, but what does it really mean? Logistics is the process of planning, implementing, and controlling the efficient, effective flow of goods and services from point of origin to point of consumption. In other words, it’s all about getting goods and materials where they need […]

What are Local Authorities? Definition A local authority is a public body that is responsible for providing a range of services to the local community. They are usually run by elected councillors, who make decisions about how the authority’s budget is spent. Local authorities are responsible for a wide variety of services, including: -Housing -Planning […]

What is Maintenance, Repair And Operations (MRO)? Definition Maintenance, repair and operations (MRO) is a term that encompasses all the activities necessary to keep a facility running at peak efficiency. It includes everything from preventive maintenance and regularly scheduled repairs to emergency repairs and replacement of worn-out or broken equipment. MRO is a broad field […]

What is Living Wage? Definition Do you know what the living wage is? You may have heard the term before but don’t quite understand what it means. The living wage is the hourly rate at which an individual must work to support themselves and their family. This includes basic needs such as housing, food, transportation, […]

What is Make Or Buy? Definition The “make or buy” decision is a strategic one that companies face when they must decide whether to produce a good or service in-house or to purchase it from an external supplier. The decision of whether to make or buy a product or service depends on many factors, including […]

What is Management Information (MI)? Definition Management information (MI) is a term for data that is used to make decisions about how a business is run. This type of information is usually presented in the form of reports, charts, and graphs. While management information can be historical or real-time data, it is typically used to […]

What is Material Requirements Planning (MRP)? Definition In business and manufacturing, the term “material requirements planning” (MRP) is used to describe a software-based system that helps managers track and schedule production based on customer demand. The goal of MRP is to ensure that all materials and components needed for production are available when they are […]

What is Master Data Management? Definition Master data management (MDM) is a holistic approach to managing an organization’s critical data. It’s about more than just keeping data organized – it’s about making sure that data is accurate, consistent, and accessible to those who need it. In a world where data is increasingly siloed and spread […]

What is Market Research? Definition Market research is the process of gathering information about a target market. It helps businesses gain insights into what consumers want and need, as well as how they behave. This information can be used to make decisions about product development, marketing, and sales strategies. Market research can be conducted in […]

What is Off-The-Shelf in Business? Definition You’ve probably heard the term “off-the-shelf” in relation to business, but what does it actually mean? In short, off-the-shelf software or products are ones that are readily available for purchase and use, as opposed to those that are custom-made. While off-the-shelf solutions can be helpful in some situations, they […]

What is a Method Statements? Definition A method statement is a document that outlines the steps involved in carrying out a particular task or activity. It is typically used in construction and other industries as a way to ensure that tasks are carried out safely and correctly. Method statements can vary in length and complexity, […]

What is Non Regulated Procurement? Definition In the business world, there are a lot of terms and phrases that get thrown around. Sometimes it can be hard to keep up with all of the lingo. One phrase you may have heard is “non-regulated procurement.” But what does that actually mean? In short, non-regulated procurement refers […]

What is Net Zero? Definition Net zero is a term used to describe the goal of many environmentally conscious individuals and organizations. The definition of net zero is the balanced state where human activity does not release any additional carbon dioxide into the atmosphere. Achieving net zero status would mean that any carbon dioxide released […]

What is Net Present Value? Definition Net present value is the calculation that determines the current value of an investment or project. It is used to compare different opportunities in order to make a decision about which is the best option. To calculate net present value, you need to discount the cash flows from the […]

What is Non-Linear Pricing? Definition Non-linear pricing is a type of pricing strategy where the price of a product or service is not based on a linear scale. In other words, the price is not directly proportional to the quantity of the product or service purchased. This type of pricing is often used in cases […]

What is Net Amount? Definition The net amount is the difference between a company’s total revenues and total expenses. It is used to calculate a company’s profit or loss. The net amount can be positive or negative. A positive net amount indicates a profit, while a negative net amount indicates a loss. What is Net […]

What is OJEU? Definition OJEU is the Official Journal of the European Union. It’s a daily publication that contains all the EU legal acts that have been published in the last 24 hours. If you’re not familiar with OJEU, don’t worry; you’re not alone. In this blog post, we will explore what OJEU is, what […]

What is Open Procedure? Definition Open procedure is a type of surgery that uses an incision to access the inside of the body. This type of surgery is often used for procedures such as appendectomies, cholecystectomies, and hernia repairs. The surgeon will make a small incision in the patient’s skin and then insert surgical instruments […]

What are Operating Expenses (Opex)? Definition Operating expenses, or opex, is a term used in business to refer to the regular costs incurred in running a company. These costs can include everything from rent and utilities to salaries and marketing expenses. While some businesses may view opex as a necessary evil, it’s important to remember […]

What is Operating Cash Flow? Definition Operating cash flow (OCF) is the measure of a company’s ability to generate cash from its core business operations. It is a key metric in financial analysis and is used to assess a company’s financial health. OCF is calculated by adding up all of a company’s inflows and subtracting […]

What is an Options Appraisal? Definition When it comes to business, there are a lot of terms that get thrown around. Some are essential to know, while others are more specific to certain industries. Options appraisal is one of those terms. So, what is options appraisal? In short, it’s a process of assessing different courses […]

What is Original Equipment Manufacturer (OEM)? Definition The term “original equipment manufacturer” (OEM) is used in a variety of industries, from automotive to computing, and simply refers to a company that produces parts or equipment that is used in the manufacture of another product. An OEM may also provide finished products or sub-assemblies that are […]

What is Over OJEU? Definition What is Over OJEU? What does it mean for a project to be “over OJEU”? In the European Union, all public sector contracts that are above a certain value must be advertised in the Official Journal of the European Union (OJEU). The OJEU is the EU’s official gazette, and it […]

What is Output Specification? Definition Output specification is the process of defining the characteristics and quantities of the output from a manufacturing process. In output specification, all of the important characteristics of the product must be specified, as well as the acceptable range or tolerance for each characteristic. This ensures that the product meets the […]

What is Over specified? Definition In medical research and development, the term “over specified” is used to describe a product that has too many features or requirements that are not essential to its function. This can lead to problems during clinical trials and commercialization, as the product may not meet the needs of patients or […]

What are Part B Services? Definition Part B of Medicare is medical insurance. It helps pay for outpatient medical care and preventive services. Part B also covers some durable medical equipment, home health care, and other services. You must pay a monthly premium for Part B coverage. If you decide to enroll in Part B, […]

What is PCIP? Definition Personal Carbon Trading, or PCIP, is a system designed to help individuals offset their carbon footprint. It does this by allowing people to trade their carbon credits on a voluntary basis. The idea is that by making it easier for people to offset their emissions, we can encourage more people to […]

What is a PCS-Tender? Definition A PCS-tender is a type of contract that is used in the public sector. It is a way for the government to procure goods and services from the private sector. The term “PCS” stands for “public contracting services.” A PCS-tender is a type of contract that is used in the […]

What is PCM in Procurement? Definition In the world of procurement, there are a lot of acronyms and jargon that can be confusing. One of those is PCM, which stands for Procurement Category Management. But what exactly is it? Procurement Category Management (PCM) is a strategic approach to sourcing and managing spend across an organization. […]

What are Performance Bonds? Definition A performance bond is a type of surety bond that is typically required by the project owner from the contractor as a guarantee for the completion of the project. The surety company issuing the performance bond will be liable to the owner for any losses incurred as a result of […]

What are Principles Of Procurement? Definition The principles of procurement are guidelines that dictate how government agencies and organizations should go about procuring goods and services. The main goal of these principles is to ensure that the procurement process is fair, efficient, and cost-effective. There are a total of 10 principles of procurement, which we […]

What is Pestlee Analysis? Definition Pestlee analysis is a framework used in business and marketing to assess external factors that may impact an organization or individual. Pestlee is an acronym for Political, Economic, Social, Technological, Legal, and Environmental factors. This framework takes into account the macro-environment in which a business or person operates. Pestlee analysis […]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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