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Sourcing and Procurement 
Glossary

Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies

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Customer of Choice

An organization that suppliers are willing to prioritize over other organizations. Typical suppliers will make investments and provide better quality, service or overall value for their best customers.

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Customs

The area of government that controls and administers policies and procedures for the import and export of goods

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Cycle Stock

The active portion of an inventory - i.e., that part of inventory, which is depleted through regular withdrawals or use, and is replenished through repetitive orders.

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DEALER, JOBBER OR DISTRIBUTOR

A business that maintains a store, warehouse, or other establishment in which a line or lines of products are kept in inventory and are sold to the public on a wholesale or retail basis.

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DEFAULT

Failure by a party to a contract to comply with contractual requirements.

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Decarbonisation

The reduction or removal of carbon dioxide from energy sources

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Customer relationship management (CRM) system

A database to keep track of customers, contacts and a record of transactions

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Cycle Counting

The counting of a certain number of items every workday with each item counted at a prescribed frequency.

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Cycle Time

In a purchasing context, the replenishment cycle represents the period of time required to order and make available for required stock (e.g., the time between receipt of the requisition and delivery of the material to the requisitioner).

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DEBARMENT

The disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by a government body, for a specified time commensurate with the seriousness of the offense, the failure, or the inadequacy of performance.

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DOCUMENT TYPE

MAPS Procurement uses document type to differentiate among different functions for a requisition, solicitation, contract, or order. The document type is a field to be entered on those screens that are for requisition solicitation, contract, or order.

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Decision Tree

A decision support tool that uses a tree-like graph or model of decisions and their possible consequences.

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