acronym

An Expression of Interest, also known as an EOI, is a formal business document used by a prospective vendor in the procurement process. It signals to the buyer that they have the capabilities and capacity needed to execute a project or provide a service specified in the request for proposal (RFP). This document is usually […]

The Economic Order Quantity (EOQ) is a calculation used to define the optimal quantity for which to purchase inventory in a given procurement cycle. Utilizing the EOQ maximizes cost savings by minimizing ordering and holding costs. This process involves determining the minimum total cost of ordering and carrying inventory, while also accounting for any changes […]

The Environmental Protection Agency (EPA) is a government agency that sets and enforces standards for pollution control in the United States. EPA regulation plays an important role in promoting long-term sustainability goals across various industries, including procurement. Procurement professionals must understand how these rules apply to their contracts and take steps to ensure compliance with […]

Engineer, Procure, and Construct (EPC) is a professional business term referring to the process of contracting for the design, construction, and installation of industrial infrastructure by a single contractor. This process utilizes engineering, procurement, and construction management services to provide turnkey solutions from a single source of responsibility to its clients. EPC is an efficient […]

Engineering Procurement and Construction Management (EPCM) is an integrated approach to project delivery, wherein the contractor takes responsibility for the technical expertise and resources needed to manage a construction project from concept to completion. This includes providing design services, overseeing the purchase of necessary materials, coordinating contractors, making sure milestones are met on schedule and […]

EPIC (Engineer, Procure, Install and Commission) is the process of acquiring materials and services from external sources for use in a project. The term is generally used to refer to large-scale projects such as construction or infrastructure development which involve contracting out significant elements of the work. In terms of procurement, it refers to the […]

EPICOM, otherwise known as Engineer Procure Install Commission Operate and Maintain, is an official business definition of a process in procurement. This procedure involves the engineer designing a system or structure, procuring raw materials and equipment for the project, installing it on site, commissioning it to ensure it works correctly, operating the system, and maintaining […]

An Emergency Purchase Order (EPO) is a procurement process that involves the expedited procurement and delivery of certain goods or services. It is used to procure items when there is an immediate need for the item/service and waiting for a regular purchase order (PO) is not an option. EPOs are usually requested due to safety […]

ERP (Enterprise Resource Planning) Enterprise Resource Planning (ERP) is an integrated information system designed to streamline and optimize the procurement processes of an organization. It allows for the coordination of multiple business functions, including supply chain management, inventory control, financial management, human resources, and customer service. Through its integrative approach, ERP reduces costs and complexity […]

Environmental, Social and Governance (ESG) is a concept used in the procurement process that considers the effect of an organization’s operations on the environment, social wellbeing, and corporate governance when making decisions. It revolves around three key areas: environmental, social and governance. The environmental factor looks at how a company manages its resources and treats […]

Electronic Value Transfer (EVT) is a form of procurement payment method which facilitates the transfer of funds from a buyer to a seller in an electronic format. EVT eliminates the need for physical documents and manual processing, resulting in less paperwork, faster transaction completion times, and greater cost savings. With enhanced security measures in place, […]

EXW, or “Ex Works,” is a trading term used in international procurement that stipulates the seller is only responsible for delivering goods to their pre-determined place of departure. This means that the buyer is responsible for all costs associated with collecting the goods from the seller’s premises, plus any additional costs related to bringing the […]

A Framework Agreement (FA) in procurement is an arrangement between two or more parties, wherein the parties agree to certain terms and conditions for future transactions. These transactions can include anything from delivery of goods or services to order placement and payment. By entering into a FA, both parties define the framework that governs their […]

The Federal Aviation Administration (FAA) is the official business regulatory agency under the U.S. Department of Transportation responsible for oversight and regulation of all aviation related activities, including aircraft operations, airport activities, and air traffic control. From a procurement perspective, the FAA sets regulatory standards for procurement, ensuring that air carriers receive fair and competitive […]

The Federal Acquisition Regulation (FAR) is the official policy of the United States government for procuring goods and services from external sources. The FAR outlines standards that must be followed when conducting a procurement, including when to solicit bids, the evaluation process, contract awards, modification and cancellation of contracts, and dispute resolution procedures.

FAS (Free Alongside Ship) is an international trading term associated with the sale of goods. In this transaction, the seller is responsible for delivering the goods to a port of destination; the buyer is obligated to pay all expenses related to loading the goods onto a vessel designated and approved by the buyer. FAS defines […]

The Free Carrier (FCA) terms in procurement refer to the contractual agreement between a buyer and seller, which stipulates the point at which ownership of the goods transfers from the seller to the buyer. According to this agreement, the seller must arrange for the goods to be delivered and made available to the buyer at […]

FCL, or Full Container Load, is a term used in the procurement and transportation industry to refer to when goods are shipped in a dedicated container that is large enough to accommodate the entire shipment. This enables companies to minimize costs associated with shipping multiple packages, as well as the time spent dealing with handling […]

The Federal Employer Identification Number (FEIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify businesses. It is used for tax identification purposes and is required on all government contract bids and procurement documents. In the procurement field, FEIN is essential for companies to be eligible to bid on Government […]

The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records. This law applies to any organization that receives funding from the U.S. Department of Education and provides a set of regulations for how student data should be stored, accessed, and used. In procurement, FERPA outlines […]

The Federal Highway Administration (FHWA) is the leading agency responsible for federal-aid highways, highway safety and motor carrier safety in the United States. It operates through a network of divisions and offices located across the country to provide technical assistance to states, build and maintain America’s essential roads and bridges, and help ensure safe and […]

FIFO (First In, First Out) is an ordering principle used for inventory and supply chain management. It states that the oldest items in stock should be sold or utilized first to ensure that they are not expired or out of date by the time they are sold/used. This method is often employed in purchasing processes […]

The Federal Identification Number (FIN) is a unique nine-digit number assigned to businesses in the United States for the purpose of conducting official business with federal agencies. It is used primarily as a way to identify and track vendors who provide services or products to government departments, so that the proper payment can be issued. […]

The Federal Information Security Management Act (FISMA) is a statutory framework established by the U.S. government to ensure the security of its related information systems. Under FISMA, federal agencies must create and maintain comprehensive information security plans that outline strategies for managing risks to data and ensuring compliance with applicable standards and regulations. In terms […]

Fast-moving consumer goods (FMCG) are products that have a rapid turnover, and relatively low cost. They are usually bought by consumers on an impulse basis, meaning that they are purchased in large quantities and disposed of quickly or consumed rapidly. Examples of FMCG include soft drinks, magazines, cigarettes, grocery items, cleaning products, and personal care […]

Original Equipment Manufacturer (OEM) is used in procurement to describe when a company produces parts or components for another company that will use the parts and components in finished products. OEM suppliers are responsible for designing, engineering, producing, and testing products to the specifications required by their customer. This type of partnership enables companies to […]

Operational Expenditure (OPEX) is defined in the context of business or procurement as the money spent on the day-to-day running and functioning of a company. This includes activities such as staff salaries, technology investments, operational costs related to goods/services, maintenance and rental costs, etc. OPEX is typically managed differently from Capital Expenditure (CAPEX), which are […]

FMP stands for Fair Market Price and is a key process in efficient procurement management. It refers to the price that a buyer would be willing to pay for goods or services when trading in an open market, with both parties being fully aware of the terms of the transaction. FMP is used to provide […]

FOB, or “Free On Board”, is a common term used in the context of procurement to define when the title and responsibility for goods transfers from the seller to the buyer. In an FOB agreement, once the goods have been loaded onto the designated vessel or delivery method selected by the buyer, the risk and […]

The Freedom of Information Act (FOIA) is a federal law that gives the public access to records and documents maintained by government agencies. FOIA applies to all federal agencies and is designed to promote transparency in government operations. Through FOIA, individuals or businesses are able to request records related to their procurement activities from applicable […]

The Final Procurement Record (FPR) is a comprehensive document, serving as the official record of a procurement process. It is used to identify and track all related activities and actions, including but not limited to costs, contracting methods used, timeline analysis, and evaluation criteria. It provides a detailed overview of the entire procurement process in […]

Full Time Equivalent (FTE) in procurement is a measure of the amount of work done by a single employee on a full-time basis. It is calculated by taking the total number of hours worked by an individual during a given period and dividing it by the number of hours needed to constitute one FTE. In […]

FTL, also referred to as Full Truck Load, is a standardized form of bulk freight shipment in which a single delivery vehicle (i.e. truck) carries one full load from one origin to one destination. This mode of transport is advantageous for businesses looking to reduce the costs associated with managing multiple individual shipments while minimizing […]

Fiscal Year End (FYE) refers to the date on which an organization’s financial year ends. Procurement processes often require organizations to track spending and other organizational activities at the end of their fiscal year. To ensure that all expenses are accounted for in a timely and accurate fashion, it is common practice to conduct a […]

Gross Domestic Product (GDP) is a measure of the economic output of a country or region. It is calculated by summing the market value of all goods and services produced within a specific period of time. In procurement, GDP is used as an indicator of economic growth, stability, and purchasing power, allowing decision-makers to develop […]

Greenhouse gases (GHGs) are gaseous compounds in the atmosphere that absorb and emit infrared radiation, which leads to the trapping of heat and contributes to climate change. As a result, global policies such as the Paris Agreement have highlighted the need for businesses to measure and reduce their GHG emissions in order to achieve net-zero […]

GR, or Goods Receipt, is the process of recognizing and confirming receipt of ordered products by a purchaser from a supplier. This process is essential in any procurement procedure, as it marks the end of the purchase order cycle and verifies to the purchasing department that goods have been received from suppliers in accordance with […]

The General Services Administration (GSA) is the federal agency responsible for providing centralized procurement, real estate, technology, and other support services to the government. It serves as the “broker of goods and services” between the private sector and government entities. Through its wide range of service offerings, GSA works to advance the mission of agencies […]

HAZCHEM (Hazardous Chemical Alert) is an official business definition used in procurement to alert businesses and stakeholders to dangerous chemicals. It is designed to protect personnel and the environment from hazardous materials by ensuring that buyers and suppliers understand the risks associated with their use, handling, transport and storage. HAZCHEM regulations also put strict requirements […]

HBITS is an abbreviation for Hourly Based Information Technology Services. It is a type of procurement system designed to provide companies with reliable and cost-effective access to a range of IT services such as software development, system implementation, network engineering, and computer support. Under this system, the supplier agrees to provide the customers with highly […]

HIPAA (Health Insurance Portability and Accountability Act) The Health Insurance Portability and Accountability Act (HIPAA) is a federal law designed to facilitate the portability, accessibility and security of health care data. It applies to any entity that processes or stores protected health information (PHI) and requires that all entities follow specific safeguards for how patient […]

HTML, or Hyper-text Markup Language, is a computer language used to create webpages and web applications. It consists of a set of tags, which are syntactically placed within text documents in order to define the structure and display of content. HTML is essential for creating interactive and dynamic web content and, when combined with other […]

HUB (Historically Underutilized Businesses) are businesses that have been traditionally underutilized in the government contracting process due to various factors, including but not limited to size, ownership structure, and socio-economic background. The official definition of an HUB is “a business, at least 51 percent of which is owned by one or more individuals who are […]

Invoice-to-Pay (I2P) is the process of receiving, verifying, and authorizing vendor invoices before they are paid. I2P forms the backbone of an effective procurement system because it streamlines the process of securing goods and services from vendors. It simplifies verification of invoices to ensure only accurate and valid payments are made in a timely manner, […]

IAA stands for Interagency Agreement and is a contractual agreement between two or more government agencies that allows them to share resources, services, and personnel. This type of agreement helps ensure seamless collaboration between multiple governmental organizations so they can work together on projects and initiatives with greater efficiency. Through an IAA, agencies are able […]

Infrastructure as a Service (IaaS) is a form of cloud computing that provides businesses with virtualized computing resources over the Internet. IaaS solutions enable companies to provision and scale computing infrastructure such as servers, storage, and networking components online instead of on-premises hardware. With IaaS, procurement teams have the ability to quickly acquire, configure, and […]

Information Advisory Services (IAS) provide an in-depth understanding of the procurement process with a key focus on data intelligence. IAS enables organizations to preempt challenges associated with procurement by making informed decisions and strengthening negotiating power. Experienced professionals specializing in data and analytics can craft tailored solutions that consider risk, compliance and ethics regulations when […]

The Institute of Chartered Accountants of Scotland (ICAS) is a world-leading professional body that sets the highest standards in financial reporting and auditing for businesses. With offices in more than 100 countries around the world, ICAS offers its members a range of services such as procurement advice, mentoring and training. ICAS is committed to helping […]

Indefinite Delivery/Indefinite Quantity (ID/IQ) is a contract type used in government procurement to purchase any combination of supplies, services, and construction over a predetermined period of time. Through an ID/IQ contract, buyers enter into an agreement with one or more suppliers that allows for the ordering of items within an established range of specific requirements […]

Integrated Enterprise Systems (IES) is a comprehensive, integrated procurement and supply chain management solution designed to streamline business processes. IES offers a full range of products and services that enable organizations to improve efficiency, reduce costs, and increase visibility into their supply chain operations. By utilizing IES technology, organizations can manage the entire life cycle […]

Invitation For Bid (IFB) is a type of procurement process used by businesses to help them select the right vendor for a particular project. In an IFB, businesses invite potential vendors to provide bids on proposed projects, detailing the terms, costs, and conditions under which they will accept the bid. The chosen bidder is given […]

The Industrial Funding Fee (IFF) is a procurement-related cost that aims to maintain industrial infrastructure and strengthen technology development. When companies are awarded government contracts, they are required to pay the IFF as compensation for the use of government resources. This fee helps cover the cost of research and development, as well as technical assistance […]

The Inspector General (IG) is an official within the procurement process responsible for overseeing the implementation of applicable laws and regulations. This includes monitoring expenditures, reviewing contract files, and ensuring that all procurements are conducted in accordance with recognized standards of financial integrity and efficiency. The IG is tasked with identifying areas of risk or […]

An intergovernmental agreement (IGA) is a contractual arrangement between two or more governmental entities that have the mutual goal of achieving a specific purpose, such as pooling resources or sharing services. By entering into an IGA, governments can better coordinate their activities and leverage their available resources while minimizing any potential duplication. Through this process […]

IIRC (International Integrated Reporting Council) The International Integrated Reporting Council (IIRC) is an independent, not-for-profit organisation that promotes international integrated reporting (IR). IR is a globally accepted framework for communicating the financial and non-financial performance of organisations to their stakeholders. IIRC’s goal is to promote greater integration and better decision making by helping businesses link […]

The International Maritime Organization (IMO) defines intermodal freight containers as “standardized reusable steel boxes, suitable for the transportation of goods by more than one mode of transport without intermediate reloading.” They are designed to be used across multiple modes of transport – land, sea and air – providing manufacturers, exporters and importers with greater flexibility […]

INCO is an acronym for International Commercial Terms, which define the standard terms and conditions of a contract between two parties involved in international trade. These include responsibilities and liabilities of each party, such as delivery dates, payment terms, insurance requirements, shipment methods, and more. INCO terms are a critical component of international trade and […]

INCOTERMS, or International Commercial Terms, are a set of pre-defined terms used in international trade agreements to define the respective obligations and responsibilities of buyers and sellers. These terms cover such issues as risk transfer, payment arrangements, transportation costs, and delivery times. By clearly specifying who is responsible for what aspects of an international business […]

Intellectual Property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; symbols, names and images used in commerce. IP is protected by law from unauthorized use by others and is one of the most valuable assets that a business can possess. In procurement, IP may include copyrights, patents, trademarks, […]

ISO (International Organization for Standardization or Independent System Operator) The International Organization for Standardization (ISO) is an international body that sets the standards and processes for the assurance of quality within different types of organizations. The ISO is responsible for defining standards as well as certifying organizations that meet its guidelines. In the context of […]

ISP (Internet Service Provider) Internet Service Providers (ISP) are businesses and organizations that provide customers with access to the internet. Through their services, ISPs facilitate the transmission of data between its source and destination points. ISP services can include connecting a customer’s local area network (LAN) to the larger public internet, hosting or managing websites, […]

Information technology (IT) is the use of any computer, network or software system in order to facilitate or automate the procurement process. IT can be used in all stages of procurement, from gathering and analyzing data that will inform decisions about potential suppliers to developing and managing contracts throughout their lifetime. By utilizing IT solutions […]

The Invitation To Bid (ITB) is the official document used in procurement that initiates a formal bidding process for goods and services. The ITB contains all necessary information including an overview of the products or services to be procured, the minimum requirements for the request, any special instructions or clauses that must be followed by […]

An Invitation To Negotiate (ITN) is a formal procurement process used by organizations to solicit bids and offers from potential vendors. This process often involves preparing documents such as contracts, terms of reference, specifications, and schedule of requirements. Through an ITN, an organization is able to identify and evaluate the best vendor for their needs, […]

ITO, or Invitation to Offer, is a strategic procurement practice through which suppliers are invited to respond to the demand of a buyer for specific goods and services. It’s a process that allows buyers to select the best supplier for their particular need from those who have submitted an offer to provide them with goods […]

An Invitation to Qualify (ITQ) is a procurement strategy utilized by organizations to identify potential vendors for goods and services. An ITQ is an open invitation inviting suppliers who meet established criteria to submit a detailed qualification statement. The purpose of this process is to allow the organization to assess the capabilities of prospective vendors […]

ITT, or Invitation to Tender (also known as Invitation to Treat), is a formal request for suppliers to submit their best offers on a particular procurement process. An ITT typically provides potential suppliers with detailed information about the purchase, including the requested product/service, the timeline of the procurement process, and any relevant criteria for evaluation. […]

ITY (In The Year) is a term used in procurement to signify the period of time over which goods, services, or both are procured. It refers to a specified calendar year and allows procurements made over that specific year to be identified when analyzing expenditure data. In general, procurements using the ITY method cover the […]

The Joint Contracts Tribunal (JCT) is an official body dedicated to setting the standards and regulations for public, private, and semi-public sector contracts. Through its comprehensive library of standard contract documents, the JCT sets out clear contractual obligations and expectations for both parties carrying out a contractual agreement. JCT provides guidance on matters relating to […]

Just In Time (JIT) is an inventory management model focused on procuring the right quantity of goods at the right time for production and customer requirements. The goal of JIT is to minimize inventory costs while improving overall operational efficiency. By closely monitoring market trends, seasonal demand, and incoming orders, strategic procurement teams can order […]

KPI (Key Performance Indicators) Key Performance Indicators (KPI) are measurable metrics used to measure the success of an organization’s procurement strategy in relation to objectives. KPIs provide a clear indication of how effectively an organization is meeting its goals. Examples of common KPIs in procurement include cost savings, vendor management, customer satisfaction score, and delivery […]

The Department of Labor and Industry (L&I) is an official state government agency responsible for the regulation, promotion, and enforcement of labor and industry-related laws. Through procurement, L&I works to ensure that businesses are providing fair wages and working conditions as well as a safe workplace for their employees. Additionally, L&I focuses on improving worker […]

The Live Auction Cockpit (LAC) is an online platform that facilitates the purchase and sale of commodities in real-time. It enables buyers and suppliers to connect in a streamlined environment, providing access to transparent data on market trends and prices. LAC offers a powerful e-procurement solution which allows buyers to obtain the best quality and […]

LATS (Leave & Accruals Tracking System) is an official business system designed to streamline the management of leave and manage accrual tracking. By utilizing LATS, businesses are able to easily manage the balancing of employee hours, allowing for smooth and efficient payroll processing. Additionally, LATS provides organizations with critical visibility into their labor accruals, enabling […]

A Letter of Credit (LC) is a payment method used in international trade transactions. It guarantees that buyers’ payments to sellers will be received on time and in the correct amount. An LC allows businesses to purchase goods or services while minimizing the risk of non-payment, providing assurances to both parties that the transaction will […]

Lifecycle assessment (LCA) is an analytical tool used to measure the environmental impacts of a product or service throughout its lifetime. As part of a comprehensive procurement process, LCA helps identify the total costs of any given product or service, including environmental and human health costs that may not be immediately apparent. By considering these […]

Life Cycle Costing (LCC) is an official business definition used in procurement to evaluate the total cost of ownership of a product or service over its lifespan. By examining all associated costs from acquisition through usage and eventually disposal, LCC helps organizations identify ways to minimize overall expenditure. It takes into account items such as […]

LCCS (Low Cost Country Sourcing) Low Cost Country Sourcing (LCCS) is a procurement strategy used by businesses to source materials and services at the most cost-efficient prices. This often means looking beyond domestic markets, as emerging economies in certain countries can offer more competitive rates and greater savings on costs. By leveraging its global network […]

In the context of procurement, LCL stands for “Less than Container Load” and is an important factor when shipping goods. LCL refers to any shipment loading that does not fill a standard 20 or 40-foot container and can be thought of as the opposite of full container loads (FCL). This type of shipping involves combining […]

Last In, First Out (LIFO) is an inventory management system used in procurement that dictates that the items that are received last must be dispensed or sold first. This method helps ensure that businesses always maintain a steady supply of fresh and current stock, while also preventing the obsolescence of goods. LIFO allows organizations to […]

LLC (Limited Liability Company) A Limited Liability Company (LLC) is a form of business entity that offers limited liability protection for its owners, yet still allows the flexibility of ownership and operational structures to meet specific organizational needs. The LLC provides its owners with personal asset protection from debts and liabilities incurred by the company, […]

A Limited Liability Partnership (LLP) is a business structure in which partners share responsibility for the business’s debts and obligations, but their personal assets are not at stake if the company fails. LLPs are often used by professionals such as lawyers or accountants who wish to limit their liability while still operating as a partnership. […]

A Letter of Intent (LOI) is a legally non-binding document outlining the preliminary terms and conditions of a procurement agreement between two or more parties. The LOI serves as a starting point for negotiations, ultimately leading to a binding agreement that outlines all of the relevant details of the contract. This document is typically used […]

Life-To-Date (LTD) is a procurement term which measures the total amount of goods or services purchased from a vendor within a specified time period. LTD can be used to compare past spending to current spending, allowing companies to identify areas where they may be overspending and optimize their purchasing decisions. It is important for businesses […]

Less than truckload (LTL) shipments are a cost-effective freight option for businesses looking to ship to multiple customers, locations, or departments. This type of shipment involves consolidating multiple packages onto one larger vehicle and delivering them as a single load. LTL shipping has become increasingly popular in the logistics industry due to its cost-efficiency and […]

A Minority Business Enterprise (MBE) is an organization that is owned, managed and controlled by a person or persons who are socially and economically disadvantaged. MBEs provide goods and services to corporations, government agencies and other organizations while participating in procurement activities, such as co-contracting. MBEs offer solutions that create value for the public sector, […]

Merchant Category Codes (MCCs) are a vital tool used by businesses for tracking and categorizing purchases in the procurement process. They enable organizations to quickly identify which vendors sell what types of products, services, and solutions. MCCs also enable businesses to assign specific codes to each type of product or service, making it easier for […]

MDM (Master Data Management) Master Data Management (MDM) is a business process used to create, maintain, and manage a single source of truth for an organization’s master data. It enables organizations to manage customers, products, suppliers, and other key data points in one integrated platform and create standardized, consistent versions of critical data sets across […]

Most Favored Nation terms (MFN) refer to a customary clause in business contracts and procurement agreements, where each contracting party is granted the same privileges – or “favored” status – as any other customer. This contract clause commonly applies to price and other related conditions, ensuring all customers receive the same benefits and pricing under […]

In procurement, Material Master (MM) is a system-level master data management process that focuses on collecting vital information related to products and services for streamlined ordering, tracking, and inventory purposes. MM helps organizations keep track of all relevant data on materials, such as cost and availability, in a centralized repository, allowing the organization to streamline […]

MOQ (Minimum Order Quantity) Minimum Order Quantity (MOQ) is a policy implemented by businesses in the procurement process to ensure that they are able to meet their operational demands based on the number of products or services required. This policy sets an agreed minimum amount of items that need to be ordered to qualify for […]

A Memorandum of Understanding (MOU) is a legally non-binding agreement between two or more parties that outlines an understanding and the agreed-upon terms and conditions for collaboration on specific activities. It is often used in procurement processes to provide clarity regarding the roles, responsibilities, and expectations of each party before an official contract is signed. […]

The Model Procurement Code (MPC), is a set of guidelines developed to provide business entities with an ethical framework for procurement activities. It outlines the principles of sound procurement practices, such as open competition and transparency, and includes regulations related to fair competition, proper disclosure of information, cost-effectiveness, pricing strategies, use of resources, and contractual […]

MPL (Minimum Participation Levels) Minimum Participation Levels (MPL), also referred to as ‘minimum sourcing’ or ‘minimum order quantities’, refer to a set of criteria that an organization must adhere to when procuring goods or services. Specifically, the MPL is the minimum number of suppliers and/or partner organizations required for a given procurement activity. By setting […]

MPS (Master production schedule) The Master Production Schedule (MPS) is an essential tool used in the procurement process to ensure the timely and cost-effective order, production, and delivery of materials and products. Through the implementation of a MPS, organizations can accurately plan for inventory, forecast demand, and anticipate supply chain needs. It’s also a great […]

Maintenance, Repair, and Operations (MRO) are a key part of the procurement process. MRO items refer to non-production related goods or services necessary to keep operations functioning. This includes a range of items such as tools, electrical supplies, plumbing equipment, industrial machinery, and safety products. By leveraging economies of scale and taking advantage of existing […]

Materials Requirements Planning (MRP) is an inventory management system used by businesses to efficiently manage and track their material assets. It helps companies to better plan and optimize their supply chain operations, ensuring that essential materials are available when needed. Through the use of sophisticated software, MRP provides a practical method for forecasting inventory levels, […]

Material Requirements Planning (MRP) is an inventory management system used in procurement for businesses to forecast and plan material needs. It is a production-planning system that anticipates inventory and estimates future inventory requirements based on sales analysis, past demand, and forward-looking business trends. Through planning inventory levels as well as scheduling of delivery and ordering, […]

MRPII (Manufacturing Resource Planning) Manufacturing Resource Planning (MRPII) is a computerized system for optimizing the use of production resources. It creates an integrated set of plans to ensure that inventory and operational requirements are met in an efficient and cost-effective way. MRPII integrates data about demand and supply across multiple levels of planning, from strategic […]