Sourcing and Procurement 
Glossary

Direct supplies

Raw materials and goods for use in production

Disclosure of gifts

Declaring gifts or hospitality received from a supplier to ensure transparency of dealings

Discretionary spending

Spending by consumers on things they want to buy rather than on things they have to buy such as food and housing

Dissolved

Ceased trading

Distribution channel

The network used to get a product or service from the manufacturer or creator to the end user or consumer. It can include wholesalers, agents and retailers

Domestic

Private, not business

Directed Solution

The process of selecting a supplier or solution through a pre-determined outcome, often dictated by a Business Unit. This effort forgoes the benefits and value generated through Strategic Sourcing.

Discount 1% 10 Net 30

A payment term that is frequently used and means 1% discount if payment is received within 10 days, otherwise full payment within 30 days of invoice date.

Diseconomy of scale

Where unit costs rise with rising output

Distribution

The process of moving materials or products from one supply chain participant to another

Dividend

Money paid from the company’s earnings to the shareholder

Down-Select

To narrow the field of supplier choices by systematically considering desired criteria.