A quick reference for essential sourcing and procurement terms to simplify your processes.
A documented history of every step in the procurement process, from initial request to final delivery, ensuring transparency and accountability.
A digital tool used to facilitate competitive bidding events, such as e-auctions and reverse auctions, allowing buyers and suppliers to engage in real-time price negotiations.
The process by which a supplier submits a formal offer to supply goods or services in response to an RFQ, RFP, or e-auction.
The process of grouping suppliers or vendors into categories based on specific criteria, such as product type, performance, reliability, or risk profile.
A procurement strategy where purchasing decisions are made from a central department to ensure consistency, control, and cost savings.
Adherence to legal, regulatory, and internal standards governing procurement practices.
The management of a vendor contract throughout its lifecycle to ensure terms are met, risks are minimized, and performance is optimized.
The process of comparing and evaluating the total costs associated with different supplier offerings, factoring in price, quality, and other variables to identify the best value.
The real-time adjustment of sourcing strategies based on market changes, supplier performance, or emerging needs.
An online, real-time auction where vendors competitively bid to provide goods or services, usually to achieve cost savings.
The electronic purchase and sale of goods or services through digital platforms, streamlining the procurement process, reducing paperwork, and improving efficiency.
The standards or metrics used to assess vendor submissions, such as price, quality, delivery time, and experience.
The time interval between placing an order and receiving the goods or services.
A document that outlines the intention to enter into a contract or agreement, often used instead of a formal purchase order to signify commitment before finalizing terms.
The baseline requirements that vendors must meet before they can be considered for further evaluation in the sourcing process.
The overall process of obtaining goods, services, or works from external sources, usually through a competitive bidding process.
A supplier or vendor that meets the established criteria and has been approved to participate in the bidding process for a specific procurement project.
Instant alerts sent via email, SMS, or app to notify stakeholders of any updates or actions taken during the sourcing or bidding process.
A document used to gather general information from potential suppliers about their capabilities, products, or services before issuing an RFQ or RFP.
A detailed document that invites suppliers to propose solutions, pricing, and qualifications for a specific procurement project.
A formal invitation to suppliers to submit pricing information and terms for specific goods or services, often used for simpler procurement projects.
A type of e-auction where suppliers submit progressively lower bids in competition to win a contract, driving down the final cost.
A method to quickly and easily analyze the differences in pricing, terms, and other relevant details among vendor responses.
The process of identifying, evaluating, and selecting suppliers for procurement needs.
The process of assessing a supplier's performance, capabilities, and reliability, often through scorecards or audits.
The strategic approach to managing and improving relationships with suppliers, ensuring the procurement process is efficient, reliable, and cost-effective.
The interconnected system of organizations, resources, and processes involved in moving a product or service from supplier to customer.
The comprehensive cost of purchasing, owning, and maintaining a product or service over its entire lifecycle, considering factors like maintenance and operational expenses.
The process of overseeing vendor relationships, ensuring that contracts are adhered to, performance is monitored, and value is maximized from each supplier interaction.
The process of assessing and verifying a vendor’s ability to meet the requirements and standards necessary for participation in a procurement process.
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