Purchasing Fundamentals
Expert-defined terms from the Professional Certificate in Purchasing, Supplier Management And Negotiation course at London School of Planning and Management. Free to read, free to share, paired with a professional course.
Accounting principle refers to the rules and guidelines that govern finan… #
Related terms include financial management, budgeting, and cost accounting.
Auctions are a type of purchasing method where suppliers compete t… #
Related terms include tendering, bidding, and reverse auctions.
Benchmarking is the process of comparing and evaluating an organization's… #
Related terms include best practices, performance metrics, and continuous improvement.
Best value refers to the optimal combination of quality , price<… #
Related terms include total cost of ownership, life cycle costing, and cost benefit analysis.
Budgeting is the process of planning and managing an organization'… #
Related terms include financial planning, cost estimation, and expense management.
Category management refers to the process of segmenting and man… #
Related terms include supplier management, contract management, and strategic sourcing.
Certification refers to the process of verifying and validating a… #
Related terms include qualification, evaluation, and assessment.
Commodity management refers to the process of managing and opti… #
Related terms include hedging, risk management, and supply chain management.
Contract management refers to the process of creating , negotiat… #
Related terms include contract law, negotiation, and dispute resolution.
Cost analysis refers to the process of evaluating and comparing… #
Cost analysis refers to the process of evaluating and comparing the costs of different products or services, often used in purchasing decisions to identify and select the most cost effective option.
Cost benefit analysis refers to the process of evaluating and c… #
Related terms include cost analysis, return on investment, and value for money.
Data analysis refers to the process of examining and interpreti… #
Related terms include data mining, business intelligence, and predictive analytics.
Database management refers to the process of creating , maintain… #
Related terms include data warehousing, data governance, and information management.
Demand management refers to the process of managing and optimiz… #
Related terms include forecasting, inventory management, and supply chain optimization.
E-auction refers to an online auction where suppliers compete to o… #
Related terms include reverse auction, online bidding, and electronic sourcing.
E-procurement refers to the use of electronic systems and tools to… #
Related terms include digital procurement, online sourcing, and electronic contract management.
Environmental management refers to the process of managing and … #
Related terms include green procurement, sustainable sourcing, and corporate social responsibility.
Forecasting refers to the process of predicting and estimating fut… #
Related terms include demand planning, sales forecasting, and inventory management.
Global sourcing refers to the process of sourcing products or serv… #
Related terms include international sourcing, offshore sourcing, and global supply chain management.
Invoicing refers to the process of creating and managing invoices… #
Related terms include electronic invoicing, invoice processing, and payment terms.
Inventory management refers to the process of managing and opti… #
Related terms include just in time inventory, vendor managed inventory, and supply chain optimization.
ISO 9001 refers to an international standard for quality manage… #
Related terms include quality management, certification, and auditing.
Just in time refers to an inventory management system where… #
Related terms include just in time production, lean manufacturing, and supply chain optimization.
Life cycle costing refers to the process of evaluating and comp… #
Related terms include total cost of ownership, cost benefit analysis, and value for money.
Make or buy refers to a decision made by an organization to either… #
Related terms include outsourcing, insourcing, and strategic sourcing.
Market research refers to the process of gathering and analyzin… #
Related terms include market analysis, competitor analysis, and customer research.
Negotiation refers to the process of communicating and agreeing on… #
Related terms include contract negotiation, price negotiation, and relationship building.
Offshoring refers to the process of outsourcing products or services to <… #
Related terms include global sourcing, outsourcing, and international trade.
Outsourcing refers to the process of contracting with an external supp… #
Related terms include offshoring, insourcing, and strategic sourcing.
Payment terms refer to the conditions under which a buyer pays<… #
Related terms include invoicing, invoice processing, and cash flow management.
Price analysis refers to the process of evaluating and comparin… #
Related terms include cost analysis, value for money, and total cost of ownership.
Procurement refers to the process of acquiring goods, works, and services… #
Related terms include purchasing, sourcing, and supply chain management.
Quality management refers to the process of planning , organizin… #
Related terms include quality control, quality assurance, and total quality management.
Request for information refers to a document or communication</… #
Related terms include request for quotation, request for proposal, and tender document.
Request for quotation refers to a document or communication … #
Related terms include request for information, request for proposal, and tender document.
Request for proposal refers to a document or communication … #
Related terms include request for information, request for quotation, and tender document.
Return on investment refers to the return or profit generat… #
Related terms include cost benefit analysis, value for money, and total cost of ownership.
Risk management refers to the process of identifying , assessing… #
Related terms include risk assessment, risk mitigation, and supply chain risk management.
Sourcing refers to the process of finding and selecting suppliers… #
Related terms include procurement, purchasing, and supply chain management.
Specification refers to a document or description of the requir… #
Related terms include technical specification, functional specification, and performance specification.
Strategic sourcing refers to the process of planning and managi… #
Related terms include category management, supplier management, and supply chain optimization.
Supplier development refers to the process of working with supplie… #
Related terms include supplier management, supplier evaluation, and supplier selection.
Supplier management refers to the process of planning , organizi… #
Related terms include supplier development, supplier evaluation, and supplier selection.
Supply chain management refers to the process of planning , orga… #
Related terms include logistics management, inventory management, and transportation management.
Sustainable sourcing refers to the process of sourcing products or… #
Related terms include green procurement, environmental sustainability, and corporate social responsibility.
Tender refers to a formal invitation to suppliers to submit … #
Tender refers to a formal invitation to suppliers to submit a bid or proposal for a product or service, often used in purchasing to evaluate and compare the costs and benefits of different options.
Total cost of ownership refers to the total cost of… #
Related terms include life cycle costing, cost benefit analysis, and value for money.
Value for money refers to the value or benefit that a produ… #
Related terms include cost benefit analysis, return on investment, and total cost of ownership.
Vendor managed inventory refers to an inventory management … #
Related terms include just in time inventory, inventory optimization, and supply chain optimization.