Auction software is a digital tool that enables buyers and suppliers to participate in online bidding events—most commonly reverse auctions—to drive competitive pricing and improve sourcing efficiency...
Category Spend, also known as Category Management Spend, refers to the allocation of a company's procurement budget across specific categories of goods or services. It in...
Contract Management is a critical business process that involves the creation, negotiation, execution, and ongoing monitoring of contracts between an organization and its...
Direct categories in procurement refer to the goods and services that are directly used in the production of a company’s final product or service. These are also called direct spend categories, and they include all purchases that directly impact manufacturing...
A Dutch auction in procurement is a type of reverse auction where the buyer starts with a high price that is gradually decreased over time until one of the suppliers accepts the current price. The first supplier to agree to the offered price wins the contract...
An e-Auction (electronic auction) in procurement is an online, real-time bidding process where suppliers compete to win a contract by offering their best prices or terms. It is typically used during the sourcing phase to drive competitive pricing and...
An e-Marketplace in procurement is an online platform that connects buyers and suppliers, allowing organizations to purchase goods and services from multiple vendors in a centralized, digital environment. It functions like a B2B version of an online...
e-Procurement (electronic procurement) in procurement refers to the use of digital technologies and online platforms to manage and automate the purchasing of goods and services. It covers the entire procurement lifecycle—from requisitioning and...
A forward auction in procurement is a type of auction where buyers compete to purchase goods or services by placing progressively higher bids, and the item is sold to the highest bidder. It is the traditional auction model, opposite to a reverse...
Indirect categories in procurement refer to the goods and services that are not directly involved in the production or delivery of a company’s core products or services but are essential for its day-to-day operations. These purchases are often referred to as ...
A Japanese auction in procurement is a type of auction where suppliers or bidders compete to offer the lowest price for goods or services, but with a unique twist: as the auction progresses, the price decreases in steps rather than being bid down by...
Non-addressable spend in procurement refers to the portion of an organization's total spending that cannot be influenced or controlled by the procurement team. This type of spend typically includes costs that are either fixed, unavoidable, or outside the scope...
Order-to-Cash (O2C) is a business process that encompasses all the steps involved in receiving and processing customer orders, from the initial order placement to the final payment collection. While it is primarily used in the sales cycle, it is closely tied to...
A Purchase Order (P.O.) in procurement is a formal, written document issued by a buyer to a supplier, indicating the buyer’s intent to purchase specific goods or services under agreed-upon terms. It outlines details such as quantities, prices, delivery dates...
Procurement software in procurement refers to digital tools or systems designed to automate, streamline, and manage the entire procurement process—from sourcing and purchasing goods or services to managing supplier relationships and ensuring...
A Purchase Requisition (PR) in procurement is an internal document used within an organization to request the purchase of goods or services. It typically originates from a department or individual who identifies a need for specific items and submits the...
A Qualified Bidder in procurement refers to a supplier or contractor who has successfully met the required criteria to participate in a competitive bidding process, such as a Request for Proposal (RFP), Request for Quotation (RFQ), or Tender...
A Reverse Auction in procurement is a type of auction where the typical auction process is reversed. Instead of buyers bidding to purchase goods or services, suppliers compete against each other by offering lower prices for the goods or...
In procurement, an RFI (Request for Information) is a formal process used by organizations to gather information from potential suppliers or vendors. It is typically used in the early stages of a procurement process to better understand the...
An RFP (Request for Proposal) in procurement is a formal document issued by an organization to solicit detailed proposals from suppliers or vendors for a specific project, product, or service. It is typically used when the organization has defined...
An RFQ (Request for Quote) in procurement is a formal process used to solicit price quotes from vendors or suppliers for specific, clearly defined products or services. It is typically used when the buyer knows exactly what they need and wants to compare...
In procurement, RFX is a general term that refers to a family of procurement documents and processes that begin with "Request for X," where "X" can stand for Information, Proposal, Quotation, Tender, etc...
A sealed bid in procurement is a formal bidding process in which suppliers submit their offers in sealed envelopes (or electronically, with restricted access) by a specified deadline. The bids are kept confidential and opened simultaneously at a set...
In procurement, sourcing refers to the strategic process of finding, evaluating, and selecting suppliers of goods and services to meet an organization’s operational needs. It involves identifying the best sources—whether local or global—that can...
Sourcing software in procurement refers to digital tools or platforms designed to automate, streamline, and optimize the sourcing process—helping organizations identify, evaluate, negotiate with, and manage suppliers more efficiently...
Spend analysis in procurement is the process of collecting, cleansing, categorizing, and analyzing expenditure data to understand how an organization is spending its money. The goal is to identify cost-saving opportunities, improve efficiency, and...
Strategic sourcing in procurement is a holistic, long-term approach to sourcing goods and services that focuses on maximizing value, not just minimizing cost. Unlike traditional sourcing, which is often reactive and price-driven, strategic sourcing involves...
In procurement, a supplier is a person or company that provides goods, services, or materials to another organization. Suppliers play a crucial role in the supply chain as they are responsible for delivering the necessary resources that organizations require to...
Supplier Management in procurement refers to the strategic process of managing relationships with suppliers to ensure that the goods, services, and materials are delivered on time, within budget, and meet the required quality standards. It involves...
Supplier Relationship Management (SRM) is about moving from a transactional approach to a more strategic and collaborative partnership with key suppliers. It emphasizes mutual benefit, performance monitoring, continuous improvement, and...
2-Way Matching in procurement refers to the process of comparing two key documents—usually the purchase order (PO) and the invoice—to ensure that the information aligns before making a payment to a supplier. This is one of the simplest...
3-Way Matching in procurement is a more comprehensive and detailed process for verifying that an organization's accounts payable are correct before making a payment to a supplier. It involves comparing three key documents to ensure that all the...