Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Bidder's Long List
Those suppliers that meet the buyer's prequalification criteria and that will be requested to submit a first proposal.
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Big Data
Big Data is structured and unstructured data that is so large it is difficult to process using traditional database and software techniques. Four "V's" are commonly used to characterize the different aspects of Big Data. These include: Volume, Velocity, Variety and Veracity.
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Bilateral trade agreements
An exchange agreement between two nations or trading groups that gives each party favoured trade status connected to certain goods obtained from the signatories. The agreement sets purchase guarantees and removes tariffs and other trade barriers
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Bill of Material (BOM)
A list of items used in the manufacturer of a product. The list may show which items are required to make sub-assemblies and which sub-assemblies are required for the complete product being produced. The list may also indicate which components are manufactured and which are purchased from outside sources of supply.
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Biodiversity
Biodiversity is short for biological diversity. It refers to a high level of the variety of plant and animal life in the world or in a particular habitat – it is considered to be both important and desirable.
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Biophysical
A branch of science concerned with the application of physical principles and methods to biological problems
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Bidder's Short List
Those suppliers that meet the buyer's prequalification criteria and who will be requested to submit a more detail proposal.
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Bilateral Contract
A contract in which both of the contracting parties make promises to each other. Such a contract is formed when an offer is accepted formally by the offeree (e.g., when a supplier sends a signed acknowledgment of a purchase order to a buyer or enters into a bilaterally executed contract document with the buyer).
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Bill of Lading
A written receipt or contract, given by a carrier, showing a list of goods delivered to it for transportation. The straight bill of lading is a contract which provides for direct shipment to a consignee. The order bill of lading is negotiable; it enables a shipper to collect for a shipment before it reaches its destination (this is done by sending the original bill of lading with a draft drawn on the consignee through a bank). When the consignee receives the lading indicating that payment has been made, the lading will be surrendered to the carrier's agent, and the carrier will then ship the goods to the consignee, and the bill of lading will be surrendered to the carrier. Note: shippers frequently consign shipments to themselves on order bills of lading so that delivery is made only upon the shipper's order; the person or firm to be notified upon arrival of the shipment at destination must be designated.
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Bill of Sale
A document formally transferring ownership from the seller to the purchaser.
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Blanket Order
An agreement to purchase or a purchase order for a given quantity of specific goods over a period of time, often one year. An order that is placed with the supplier which allows the buyer to call off quantities as they need them over an agreed time period. This works in accordance with a manufacturing organisation’s production schedule. A contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. The contract generally establishes prices, terms, conditions and the period covered (no quantities are specified); shipments are to be made as required by the purchaser.
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