Knowledge Hub > Articles > Procurement

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 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 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 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 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 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 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 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 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 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 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 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 […]

What is Supported Business? Definition In recent years, there has been a growing movement of businesses that are “supported.” What does this mean? A supported business is one that is designed to have a positive impact on society and the environment, instead of just maximizing profits. There are many different types of supported businesses, but […]

What is a Waiting Time Charge in Business? Definition In business, a waiting time charge is a fee assessed when work is delayed due to reasons that are within the control of the service provider. This type of charge is common in industries where time is of the essence, such as construction, plumbing, and electrical […]

What is Sustainable Procurement? Definition Sustainable procurement is the process of sourcing goods and services in a way that minimizes environmental impact and preserves natural resources. It’s also sometimes called “green purchasing” or “environmentally friendly procurement.” The goal of sustainable procurement is to reduce the ecological footprint of businesses and organizations by making more environmentally […]

What is a Tariff? Definition A tariff is a tax or duty imposed by a governing body on imported or exported goods. The purpose of tariffs is to protect domestic industries from foreign competition by making imported goods more expensive. Tariffs are usually imposed by a country’s government on goods coming into the country from […]

What is Surety? Definition The definition of surety is a contract or undertaking in which one party agrees to be responsible for the performance of another party. In other words, a surety is a third party that guarantees the payment of a debt or the performance of another party. When it comes to business, there […]

What is TFEU? Definition TFEU stands for Treaty on the Functioning of the European Union. It is an agreement between the member states of the European Union that sets out the rules for how the EU functions. The treaty was signed in 1957 by the six founding members of the EU: Belgium, France, West Germany, […]

What is Transparency in Business? Definition Transparency is a term that gets thrown around a lot these days, but what does it actually mean in the business world? At its most basic level, transparency in business refers to the sharing of information between different parties. This can take many forms, from financial data to supply […]

What is UNSPSC? Definition You may have seen the term UNSPSC on product packaging or in business documents, but what does it mean? UNSPSC is an acronym that stands for “United Nations Standard Products and Services Code.” It’s a system of classification used to identify products and services. The code is made up of eight […]

What is a Veat Notice? Definition A Veat Notice is a formal document that notifies an individual or organization of the termination of their services. This type of notice is typically used in business-to-business (B2B) relationships, as it provides a way to end a contract in a professional and courteous manner. A Veat Notice can […]

What is a Voluntary And Community Organisation (VCO)? Definition A voluntary and community organisation (VCO) is an organisation that is set up and run by volunteers. This type of organisation can be anything from a club or society, to a charity or NGO. There are many different types of VCOs, all of which play an […]