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What is Accounts Payable Automation? Definition Accounts payable automation is the use of technology to streamline the process of paying invoices. With accounts payable automation, businesses can save time and money by automating repetitive and manual tasks related to invoice processing. Accounts payable automation can be used to schedule and make payments, track spending, and […]

What is Accounts Payable? Definition Accounts payable is a broad term that refers to the money a company owes to its creditors. This can include suppliers, lenders, utilities, and other businesses. Accounts payable is considered a current liability on a company’s balance sheet. An account payable is created when a company purchases goods or services […]

What is an Appraisal? Definition An appraisal is a professional opinion of value. Appraisals are most commonly associated with real estate, art, and antique furniture. However, an appraisal can be performed on any item that has value. The purpose of an appraisal is to provide a value for an item that can be used for […]

What is Best-Of-Breed in Business? Definition The term “best-of-breed” gets thrown around a lot in business. But what does it actually mean? In short, best-of-breed refers to a company or product that is the best in its category. This can be determined by a number of factors, including but not limited to: * Innovation * […]

What is an Approved List in Supplier Management? Definition A supplier approved list (SAL) is a list of vendors or suppliers that have been vetted and approved by a company to provide goods or services. The approval process can vary from organization to organization, but typically includes a review of the supplier’s financial stability, quality […]

What is a Blanket Order? Definition A blanket order is a standing purchase order with a supplier for a predetermined quantity of goods over a period of time. A key difference between a blanket order and a regular purchase order is that the buyer pays for goods only as they are received, rather than in […]

What is Business Process Outsourcing? Definition Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party service provider. BPO services include payroll, human resources, accounting, customer/call center relations and services, marketing campaigns, IT services, and financial processing. BPO is commonly referred to as “outsourcing,” but there is a big […]

What is BME Business? Definition BME business refers to black and minority ethnic businesses. These businesses are defined as those that are owned and operated by people from black and minority ethnic backgrounds. The term “BME business” is relatively new, only coming into use in the last few years. However, the concept of black and […]

What is Certificate Of Origin (Coo)? Definition Introduction A Certificate of Origin is a document that is used in international trade. It is a formal statement that certifies that the goods in a particular shipment originated from a certain country. The Certificate of Origin is issued by the Chamber of Commerce in the exporter’s country. […]

What is Compliance In Procurement? Definition In the business world, the term “compliance” is used a great deal. But what does it actually mean? In short, compliance in procurement refers to the process of adhering to all relevant laws, regulations, and standards when procuring goods and services. This includes everything from ensuring that suppliers are […]

What is Collaboration? Definition Collaboration is a process where two or more people work together to complete a task or achieve a goal. It is often thought of as working together, but it can also be achieved by working separately on different aspects of the same project. Collaboration can be between individuals, teams, or organizations […]

What is a Contractor? Definition A contractor is a professional who provides services to businesses or individuals. They are usually self-employed and work on a project basis. There are many different types of contractors, ranging from those in the construction industry to those in the IT industry. In most cases, contractors are hired to do […]

What is a Consultant? Definition A consultant is an expert or professional who provides advice in a particular area of expertise, such as business, management, law, finance, human resources, marketing, information technology, engineering, or public relations. Consultants typically work with businesses or organizations to help them improve their operations, grow their revenue, or make better […]

What is a Continuity Plan? Definition A continuity plan is a document that outlines how a business will continue to operate during an interruption in service. The plan should include procedures for how to keep the business running, how to protect employees and customers, and how to maintain or resume operations. A continuity plan is […]

What are Direct Labour Costs? Definition In accounting and business, direct labour costs are those that are incurred in relation to the production of goods or services. In other words, these are the costs associated with the workers who are directly involved in the production process. Direct labour costs can include wages, benefits, and other […]

What is Corporate Social Responsibility (Csr)? Definition What is corporate social responsibility (CSR)? Put simply, it’s a business model that takes into account the social and environmental impacts of a company’s activities. More and more, consumers are interested in buying from brands that have a positive social and environmental impact. In fact, 66% of consumers […]

What is a Credit Note? Definition A credit note, also known as a memo credit, is a document that reduces the amount your customer owes you for goods or services. There are many reasons why you might issue a credit note to a customer. Maybe they returned some of the merchandise they bought from you, […]

What is an Incumbent Supplier? Definition An incumbent supplier is a company that has been supplying goods or services to another company for a period of time. The length of time can vary, but the important thing is that the incumbent supplier has an existing relationship with the customer. The customer may be happy with […]

What is Nearshoring? Definition Nearshoring is a business strategy that involves moving production or services closer to the company’s home market. The goal of nearshoring is to reduce costs and improve quality by taking advantage of lower-cost labor and other resources in nearby countries. Nearshoring has become increasingly popular in recent years as companies look […]

What is Delivery Time in Business? Definition In business, delivery time is the elapsed time between the start of work on an order and the completion of work on that order. Delivery time can be affected by many factors, such as the complexity of the product or service being produced, the availability of raw materials […]

What is a Letter Of Credit? Definition A letter of credit is a document that a bank issues to guarantee payment on behalf of its customer. The customer is usually an importer who is buying goods from an exporter. If the importer does not pay the exporter, the bank will cover the costs. A letter […]

What is an Official Order in Business? Definition In business, an official order is a request or command that is given by a superior to those under them in the organizational hierarchy. The purpose of an official order is to ensure that specific tasks are completed in a timely and efficient manner. While official orders […]

What is Onboarding Suppliers? Definition Onboarding suppliers is the process of incorporating new suppliers into your company’s process and workflows. This usually includes creating and maintaining supplier accounts, defining roles and responsibilities, and establishing communication protocols. Onboarding can be a lengthy and complicated process, but it’s essential for ensuring that your company has the resources […]

What is Outsource? Definition Outsourcing has become a popular business model for many companies in recent years. But what is outsource? In short, outsource is the process of hiring another company or individual to complete a specific task or project. This can be done for a variety of reasons, such as saving on costs or […]

What is a Supplier Performance Review? Definition A supplier performance review (SPR) is a process used by organizations to assess and provide feedback to their suppliers. It is a continuous improvement tool that can be used to monitor supplier performance against predetermined criteria, identify areas for improvement, and mitigate risks. The SPR process should be […]

What is Outsourcing? Definition In business, outsourcing is the process of contracting with another company or individual to provide services or produce goods that are typically performed by in-house staff. Outsourcing is a common practice among small and large businesses alike, as it can save on costs and help to improve efficiency. There are many […]

What is a Preferred Supplier List? Definition A preferred supplier list (PSL) is a formalized list of pre-approved vendors that have been carefully selected based on specific criteria and approved to provide goods or services to an organization. The criteria for selection can vary depending on the organization, but they are typically based on quality, […]

What is Quality Control? Definition Quality control is the process of ensuring that products meet certain standards before they are released to the market. This process can be applied to anything from food and drugs to manufactured products. There are a number of different ways to go about quality control, but the basic idea is […]

What are Stage Payments? Definition A stage payment is a pre-determined amount of money that is paid out to a contractor or freelancer at specific points during the project timeline. For example, if you’re hiring a web designer to create a new website for your business, you might agree to pay them $500 at the […]

What are Small And Medium-Sized Enterprises (Smes)? Small and medium-sized enterprises (SME) are business that has fewer than 250 employees. SMEs are defined in the European Union (EU) as businesses with fewer than 500 employees. In the United States, they are defined as businesses with fewer than 500 employees. There are many benefits to being […]

What is Supplier Diversity? Definition Supplier diversity is a business initiative that seeks to include businesses owned by marginalized groups in the supply chain of major corporations. This Business Wire article defines supplier diversity and gives an overview of its benefits and challenges. What is Supplier Diversity? Supplier diversity means that companies actively seek to […]

What is Supplier Risk Management? Definition Supplier risk management (SRM) is the process of assessing, monitoring, and managing the risks associated with supplier relationships. It’s a key part of supply chain management and procurement that helps organizations avoid or mitigate disruptions to their supply chains. SRM encompasses all the activities and strategies involved in identifying, […]

What is Supply Base Reduction (Sbr)? Definition Supply Base Reduction, or SBR, is a corporate strategy employed by many large organizations in order to simplify and rationalize their supplier base. The goal of SBR is to streamline the number of suppliers an organization uses in order to obtain goods and services while also reducing costs. […]

What is Supplier Management? Definition Supplier management is the process of assessing, monitoring and improving supplier performance to ensure they are able to meet the requirements of the business. It’s an important part of any supply chain and can have a significant impact on the quality of products and services, as well as the cost. […]

What is a Supplier/Vendor? Definition When it comes to business, there are a lot of terms that get thrown around. And if you’re not in the industry, it can be hard to keep up. But don’t worry, we’re here to help. In this blog post, we’ll be exploring the term “supplier/vendor” and what it really […]

What is Supply Chain Management? Definition Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the aim of achieving specific goals. It involves coordinating and integrating activities across functions and geographies to deliver a product or service to the customer at the right time, at […]

What is a Third Sector Organisation (Tso)? Definition A third sector organisation (TSO) is a type of organisation that is neither public nor private, but has characteristics of both. TSOs are usually non-profit or charitable organisations, but can also be for-profit businesses that reinvest their profits back into the organisation or the community. There are […]

What is Third-Party Logistics (3Pl)? Definition In business, the term “third-party logistics” (3PL) describes the process of outsourcing logistics and transportation services to a company that specializes in those areas. The decision to outsource these services is usually based on the belief that the 3PL can do it better, faster, and/or cheaper than the company […]

What is Vendor Management? Definition Vendor management is the process of assessing vendor performance, defining and setting expectations for service levels, and maintaining supplier performance records. It’s a broad term that encompasses many different aspects of working with vendors, including: -Vendor selection -Contract negotiation -Vendor performance monitoring -Risk management In short, vendor management is all […]