Knowledge Hub > Articles > Procurement

What is Ebitda? Definition Ebitda is a term that you’ve probably seen thrown around a lot but may not actually know what it stands for. This blog post will give you a comprehensive definition of what Ebitda is, as well as how it’s used in the business world. Ebitda stands for “earnings before interest, taxes, […]

What is a Dynamic Purchasing System (DPS)? Definition A dynamic purchasing system (DPS) is an electronic platform that allows suppliers to compete for public sector contracts. This means that instead of awarding a contract to a single supplier, the buyer procures from a pool of pre-approved suppliers. The advantage of this system is that it […]

What is Economic Order Quantity? Definition Economic order quantity (EOQ) is the number of units of a good that a company should order at one time to minimize the cost of both inventory and ordering. EOQ is determined by taking into account the following factors: * The demand for the good * The cost of […]

What are Deliverables in Business? Definition In business, the term “deliverables” refers to products or services that a company provides to its clients. A deliverable can be anything from a physical product to a digital service. In this article, we will explore the definition of deliverables in business, as well as some examples of common […]

What is Enterprise Resource Planning (Erp)? Definition Enterprise resource planning (ERP) is defined as a process by which a company (often a manufacturer or distributor) manages and integrates the important parts of its business. This includes everything from product planning and development to manufacturing, marketing, and sales. An ERP system is usually composed of multiple […]

What is an EINA (Equalities Impacts Needs Assessment)? Definition The term “Equalities Impacts Needs Assessment” (EINA) is used to describe the process of considering the needs of all individuals in society, including those who experience discrimination or disadvantage. An EINA is usually carried out as part of a larger project or policy initiative, in order […]

What is E-procurement? Definition E-procurement, also known as electronic procurement, is the use of electronic means to buy goods and services. This can include the use of online marketplaces, online catalogs, and electronic request for proposals (RFPs). E-procurement is often used in the business-to-business (B2B) space as a way for companies to streamline their purchasing […]

What is a European Single Procurement Document (ESPD)? Definition The European Single Procurement Document (ESPD) is a self-declaration document used in public procurement in the European Union. The ESPD replaces the need for bidders to submit multiple declarations, attestations or certificates when participating in a public procurement procedure. It is an electronic document which is […]

What are External Stakeholders? Definition If you’re new to the business world, you may have come across the term “external stakeholder” and wondered what it meant. In short, external stakeholders are people or organizations that are affected by the decisions and actions of a company but are not directly involved in its day-to-day operations. They […]

What is Fair Market Value? Definition You’ve probably heard the term “fair market value” before, but what does it actually mean? In short, fair market value is the price that a willing and informed buyer would pay for an asset, after taking into account all relevant factors. While that may sound straightforward enough, there are […]

What is Exigency? Definition In a business context, exigency is defined as a situation that requires immediate action or attention. An exigent circumstance is one in which delay would result in irreparable harm or damage. In other words, if something needs to be done urgently, it’s considered an exigent matter. This can apply to both […]

What is a Financial Year? Definition A financial year is a 12-month period used for calculating annual financial statements in businesses and other organizations. A fiscal year (or financial year) may be different from a calendar year, but many countries have adopted a standard fiscal year that runs from January 1 to December 31. The […]

What are Finished Goods? Definition A finished good is a product that is ready for sale and consumption. In other words, it is a good that has been through the entire manufacturing process and is now complete. However, the term “finished good” can also refer to a product that is partially complete but still needs […]

What are Fair Work Practices? Definition Fair work practices are those that uphold the dignity of workers, provide them with a livable wage, and protect their rights. In recent years, there has been an increased focus on fair work practices as more and more companies outsource their labor to countries with lower wages and fewer […]

What is a Full Container Load (FCL)? Definition A full container load (FCL) is a shipment of cargo that completely fills a 20-foot or 40-foot intermodal container. FCL is the standard shipping method used for most international freight. While less-than-container loads (LCL) and airfreight are sometimes used for international shipments, they are generally more expensive […]

What are Fixed Assets? Definition Fixed assets are a valuable part of any business and understanding what they are is important for financial reporting. But what are fixed assets? In short, fixed assets are physical items that a company uses in its business operations and expects to keep using for a long period of time. […]

What is Foisa? Definition Introduction Foisa is a Scottish term meaning “to ask.” It is most commonly used in the context of asking for information from a public body, such as the government. The Freedom of Information (Scotland) Act 2002, or “Foisa” for short, gives Scottish citizens the right to request information from Scottish public […]

What is Green Procurement? Definition Green procurement is the process of selecting and purchasing products and services that have a minimal negative impact on the environment. It’s also sometimes called “sustainable procurement.” The goal of green procurement is to reduce the overall environmental impact of an organization’s purchases. To do this, businesses consider the whole […]

What is Full-Time Equivalent? Definition The term “full-time equivalent” (FTE) is used a variety of ways, but most commonly it is a way to measure the number of hours worked by one or more employees on a project. It is also sometimes used as a way to staffing levels in an organization. The FTE concept […]

What is Indirect Procurement? Definition Indirect procurement is the process of procuring goods and services that are not related to the direct production of a product or service. These purchases are necessary for the operation of a company but are not part of the company’s core offering. Indirect procurement includes items such as office supplies, […]

What is a Group Purchasing Organization (GPO)? Definition A group purchasing organization (GPO) is a company that uses its buying power to negotiate lower prices for the products and services its members need. GPOs are common in many industries, including healthcare, where they’re sometimes called physician hospital organizations (PHOs). The concept of a GPO is […]

What is a Innovation Partnership Procedure? Definition The Innovation Partnership Procedure (IPP) is a new framework introduced by the European Commission in order to support and fund innovation projects between companies and universities or research institutes. It replaces the previous Framework Programme for Research and Innovation (FP7) and is seen as a way to boost […]

What are Internal Stakeholders? Definition What are internal stakeholders? In business, the term “internal stakeholders” refers to a group of people who have an interest in the success or failure of an organization. This can include employees, managers, executives, shareholders, and others. An organization’s internal stakeholders can impact its ability to achieve its goals. For […]

What is Inventory Management? Definition Without inventory management, businesses would be lost. This term is defined as “a strategic process that encompasses the planning, acquisition, storage, and distribution of goods and services” In other words, it’s the art and science of making sure that a business has the right products in the right place at […]

What is an Integrated Procurement System? Definition You’ve probably heard the term “integrated procurement system” (IPS) thrown around quite a bit, but what does it actually mean? An IPS is a set of software applications that work together to manage the procure-to-pay process. This includes everything from sourcing and buying goods and services to paying […]

What is Inventory? Definition Inventory refers to the stock of any goods or materials that a company uses in its business operations. It is often one of the most important assets that a company has, as it can be used to generate revenue and profit. Inventory can be divided into two main types: finished goods […]

What is an Inventory Management System? Definition Inventory management is the process of tracking and managing inventory levels, orders, and stock. An inventory management system is a software that helps businesses automate and streamline these processes. Inventory management systems are used in a variety of industries, from retail to manufacturing. They help businesses keep track […]

What is an Invoice Item? Definition The definition of an invoice item is a record of the sale of goods or services by a business to its customer. The invoice item will include a description of the product or service, the quantity sold, the unit price, the total price, and any other relevant details. The […]

What is an Invoice? Definition An invoice is a document that businesses send to customers to request payment for products or services. The invoice should include the date of the transaction, the products or services sold, the quantity of each product or service, the unit price of each product or service, any discounts applied, the […]

What is Invoice Reconciliation? Definition Invoice reconciliation is the process of comparing invoices from suppliers to purchase orders and shipments received. This is done to ensure that the invoiced amount is correct, and that all items on the invoice have been received. The process of reconciling invoices can be manual or automated. Manual reconciliation is […]

What is a Joint Venture? Definition A joint venture (JV) is a business agreement in which two or more parties agree to combine their resources in order to accomplish a specific goal. This type of arrangement is often used when two companies want to enter into a new market or launch a new product together. […]

What is Invoice-To-Pay (I2P)? Definition Have you ever wondered what goes into making sure all your invoices get paid on time? The process is called invoice-to-pay, or I2P for short. I2P is the process of ensuring that all invoices are paid in a timely manner. This includes verifying the accuracy of the invoice, issuing payment, […]

What is Kaizen? Definition Kaizen is a Japanese word that means “improvement.” It’s also a business philosophy that emphasizes continuous improvement of processes and products. The Kaizen philosophy is built on the idea that small, incremental changes can have a big impact on quality and productivity. This philosophy can be applied to any area of […]

What is Kanban? Definition In the world of software development, there are a lot of different methods and frameworks that teams can use to manage their work. One of these methods is Kanban. So, what is Kanban? In its simplest form, Kanban is a way to visualize and manage work. It’s a flexible system that […]

What is Kraljic Matrix? Definition Kraljic Matrix is a tool that was developed in 1983 by Peter Kraljic. It is used to help organizations determine their strategic purchasing decisions. The matrix takes into account two factors: the importance of the item being purchased and the supplier’s power. The matrix is divided into four quadrants: – […]

What is Last In First Out (LIFO)? Definition LIFO is an inventory valuation method in which the most recently acquired items are assumed to be the first ones sold. The acronym LIFO stands for “last in, first out.” LIFO is used by businesses to manage inventory levels and costs. It can also be used to […]

What is Lead Time? Definition In business, lead time is the latency between the initiation and completion of a process. For example, the time it takes to fill a customer order or build a new product. Lead time is an important consideration in manufacturing and logistics planning. Long lead times can tie up capital in […]

What is Lean Manufacture? Definition What is lean manufacturing? This is a question that has been asked time and time again, but the answer is not always so clear. Lean manufacturing is a process that helps to eliminate waste in all areas of production. This includes everything from material waste to wasted time and energy. […]

What is Licensing? Definition Licensing is the transfer of technology or intellectual property from one company to another. In exchange for the right to use this IP, the licensee often agrees to pay the owner of the IP (the licensor) a royalty or fee. Licensing is a common way for companies to commercialize their inventions […]

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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 […]