ABC Analysis is a business management tool used to classify assets or resources according to their importance and value. This method helps companies manage their resources efficiently.
An award is the process by which public or private procurers grant contracts for goods, services, or construction works. This is often done through tenders to ensure transparency and equal treatment. Awards are a crucial instrument for procurement, especially in the public sector.
Direct Procurement refers to the process of acquiring goods, services, or work that are directly incorporated into a company's end products or are essential to its core operations.
E-procurement refers to the procurement of goods and services via digital tools and platforms. It utilises the internet to make procurement processes more efficient. This technology enables companies to automate their purchasing processes, increase transparency and reduce costs.
Guided buying is a purchasing strategy that aims to simplify and standardise procurement processes in companies. This method guides users specifically through the purchasing process in order to optimise purchasing decisions.
It refers to the procurement of goods and services that are not directly included in the end products or core activities of a company. Instead, these goods and services support the organization and its employees so that they can carry out their tasks efficiently and effectively.
Maverick buying is a corporate procurement practice in which employees purchase goods or services outside of established procurement policies or contracts. This type of purchasing can lead to inefficient processes and higher costs.
Operational Purchasing refers to the day-to-day procurement of goods and services necessary to maintain the ongoing operational functions of an organisation.
Procure-to-Pay (P2P), sometimes called Purchase-to-Pay, is a process usually integrated in software that includes all steps from ordering to payment for goods and services. This process is fundamental for the procurement and finance departments in companies.
At its core, procurement refers to the process of obtaining goods or services from external sources. This process includes a wide range of activities, from determining the need for a product or service to negotiating contracts with suppliers and managing the delivery of the purchased items.
A procurement catalog is a central repository or database of standardized goods, services, or materials available for purchase by a company. It allows internal stakeholders to easily identify, compare and procure the items they need.
A procurement process comprises all activities associated with the purchase of goods and services by an organisation. It begins with the identification of needs and ends with the provision of goods or services. This process is essential to maintain and improve the operational performance of an organisation.
A product group refers to a categorization/classification of similar goods, products or services that are grouped together based on common characteristics, properties or uses. They play a fundamental role in organizing and managing procurement activities, enabling companies to effectively source and manage a wide range of items.
Category management refers to the strategic planning and management of product groups in retail in order to maximise efficiency and profitability. It includes the optimisation of product ranges, prices, promotions and more.
A Purchase Order (PO), is an official document sent from a buyer to a seller. It specifies the type, quantity and price of the goods or services to be purchased. This document serves as a legally binding agreement between the two parties that establishes the purchase.
A purchase request is an internal document used in companies to communicate the need for goods or services. This document serves as a formal request from a department to the procurement department or management to purchase specific products or services, for example, this can be done through purchasing software.
A purchasing strategy is a systematic approach to optimising a company's procurement activities. It defines how a company can best procure the goods and services it needs in order to reduce costs and increase efficiency. The development of such a strategy requires a detailed analysis of expenditure and a precise knowledge of market trends.
RFX is a collective term for various types of documents used in the procurement process. These documents are RFi (Request for Information), RFp (Request for Proposal) and RFq (Request for Quotation). They are used to systematically compare and select offers from different providers.
Single sourcing is a procurement strategy in which a company purchases the goods or services it requires from just one supplier. This strategy is often chosen to simplify purchasing processes and build close relationships with suppliers. By focussing on one supplier, companies can often negotiate better conditions and simplify communication and quality management.
Source to Contract (S2C) is the process that covers strategic sourcing from the identification of a need to the conclusion of a contract. This process includes several steps such as market research, selection of suppliers, tendering and finally negotiation and signing of contracts and is often integrated in software.
Source-to-Pay (S2P) is a process usually integrated in software that covers all steps from source selection to payment for goods and services. It begins with identifying a need and ends with paying supplier invoices.
Sourcing involves identifying, evaluating, selecting and managing suppliers or vendors to meet the needs and requirements of the business. It is a fundamental aspect of procurement and supply chain management and plays a critical role in ensuring that companies have access to the resources they need to operate efficiently and effectively.
Strategic Purchasing is the targeted and long-term planning and procurement of goods and services aimed at maximising the value contribution of the purchasing function to the company's success.
Supplier Lifecycle Management is a strategic approach to managing supplier relationships, from initial onboarding to final offboarding. It includes a set of processes aimed at optimizing supplier performance, mitigating risk, promoting collaboration and maximizing value for companies and suppliers.
Supplier Relationship Management (SRM) refers to the systematic approach that companies use to evaluate and manage relationships with their suppliers. The aim is to maximize the added value from the supplier relationship
Tail spend refers to a company's spending on goods or services that represent only a small percentage of total expenses but requires significant administrative effort. This spending is often fragmented and not actively managed, which can lead to inefficient procurement practices.
Tenders are formal procedures in which contracting authorities request offers for goods or services. They serve to promote transparency and competition in the purchasing process. This procedure is particularly common in public and large private organisations.
Tier suppliers are part of a supplier hierarchy in the production chain, which is primarily used in the automotive and electronics industries.
