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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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Ad-hoc purchase

An item bought for a single and non-recurring use or purpose

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Addendum

An addition or supplement to a document; e.g., items or information added to a procurement document.

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Advanced Track

Processes in this pipeline will be more complex and take longer for benefits realisation.

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Aerosol

Solid particles that remain suspended in air as fog or smoke

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Agreement

When two or parties are in consensus. In contracting terms an agreement usually refers to a negotiated and typically legally binding oral or written arrangement between parties. Many use agreement in the same meaning as contract. See also contract.

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Algorithm

The process or rule used by an IT system to perform calculations, data processing or automated tasks

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Adaptive

Having the ability or tendency to adapt to different situations

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Advanced Charges

Also known as Freight Forwarding Charges, Advanced Charges are the fees charged on freight for a shipment advanced or transferred from one carrier to another, or to the shipper. These fees are normally collected from the consignee or recipient of the shipment.

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Advertise

To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conform to the legal requirements imposed by established laws, rules, policies and procedures to inform the public.

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Agile

A project approach in which methods are most suitable for projects where requirements are best defined incrementally. This approach requires frequent inspections and adjustments.

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Air Waybill

A routing document used for air freight shipments stating what the shipment contains, weight, shipping instructions and shipping costs.

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Allocated overhead

Overheads are the cost of things that are needed to manufacture an item or deliver a service but are not associated with just one product. The total overhead cost is spread among all products or services and this is the allocated overhead

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