Sourcing and Procurement
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
"BRAND NAME OR EQUAL" SPECIFICATION
A specification that uses one or more manufacturers brand names or catalog numbers to describe the standards of quality, performance and other characteristics needed to meet the requirements of a solicitation and provide for the submission of equivalent products.
A process where the purchase order is compared against the supplier's invoice and the receiving report. A good 3-Way Match compares quantities, price, and terms appearing on the supplier's invoice to the information on the purchase order and to the quantities actually received.
A system of prioritising different types of inventory based on their value or importance to the business
The Educational Society for Resource Management; founded in 1957 as the American Production and Inventory Control Society.
Abbreviation for the American Purchasing Society, a professional organization of buyers and purchasing managers for business.
4th Party Logistics (4PL) or Logistics Outsourcing
Logistics Outsourcing (4PL) can be defined as the strategic use of outside parties (business independency) to perform activities traditionally handled by internal staff and resources. Allyn allocates resources to your company in order to manage your supply chain. We work as an extension of your company, exercising your strategy and driving your initiatives. Our objective is to lead your business to logistics best practices, providing logistics expertise & consultancy support, optimizing your processes and your supply chain.
Applications of Pareto's Law or the 80/20 rule. ABC analysis, as related to inventory, is simply a determination of the relative ratios between the number of items and the dollar value of items purchased repetitively for stock. Typically 5-10% of the items ( "A " items) account for 75-80% of the investment, 20-25% of the items ( "B " items) account for 15-20% of the investment, and 70-75% of the items ( "C " items) account for 5-10% of the investment. Inventories should be managed accordingly, with more emphasis placed on the strategic management of the "A " items.
Authority for Local Purchase: granted by the commissioner of Administration to an individual who has successfully completed all requirements established by the Office of State Procurement.
Sum of money from public funds set aside for a specific purpose.