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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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Embezzlement

The act of someone stealing assets for which they are responsible

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Enforceable by law

A court can compel those involved in the contract to fulfil their contractual obligations

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Enterprise resource planning (ERP)

A computer system that analyses the current inventory, forecast demand and expected delivery of new supplies to calculate demand and identify requirements from suppliers

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Environmentally Preferable Product (EPP)

A product or service that has a lesser or reduced impact on human health and the environment when compared with competing products or services that serve the same purpose. Such products or services may include, but are not limited to those which contain recycled content, minimize waste, conserve energy or water, and reduce the amount of toxins either disposed of or consumed. Usually used within the context of green purchasing or sustainable purchasing or corporate responsibility.

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Equal or approved equal

Used to indicate that an item may be substituted for a required item if it is equal in quality, performance and other characteristics.

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Equity

The value of the assets minus the value of the liabilities

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Emerging market

A country that is progressing toward becoming more advanced, usually by means of rapid growth, investment and industrialisation

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Engagement Model

The framework that defines collaboration between the automation COE, business functions and IT.

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Environmental Protection Agency (EPA)

USA governmental regulatory agency

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Epoxy floor paint

A hard-wearing, matt floor coating designed to resist chemicals and disguise minor floor imperfections

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Equilibrium point

The optimum price at which there is equal supply and demand of an item

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Equity Partnerships

A legally binding entity. Equity Partnerships take different legal forms, from buying a supplier (an acquisition), to creating a subsidiary, to an equity-sharing joint venture or entering into a co-op arrangement. Equity Partnerships are best used when an organization does not have adequate internal capabilities and they do not want to outsource.

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