Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
FTE (Full Time Equivalent)
The amount of work a full-time employee does in a department, or on a certain project.
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Fast Track
Processes in this pipeline will be pipeline will be low complexity, relatively quick to implement and will deliver ongoing business benefits.
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Financial Risk Tolerance
The degree to which an organization is willing to take on risks.
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Financial regulations
Internal documents setting out how money is managed within the organisation, including how budgets are set, who can authorise expenditure and, often, rules around what procurement processes must be used
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Financial year
A twelve-month period of trading. Businesses’ financial years can start at any time as long as they run for a complete year
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Fair Market Value
The value of an item as determined by negotiation between purchasers and suppliers, which would be acceptable as a basis for a purchase and sale.
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Fast-moving consumer goods (FMCG)
An organisation that makes products that sell quickly and at a low cost
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Fill Rate
The proportion of all stock requisitions that are filled from stock that is present on the shelf. The inverse of this is "stock-out rate, " which is the percentage of orders for which there is no stock on the shelves and therefore the order cannot be filled (resulting in a "back order "). These measurements can be calculated for any time period; in some retail or distribution firms it might be computed daily or weekly.
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Financial Statements
Present the results of operations and the financial position of the company. A financial statement (or a financial report) is a formal record of the financial activities of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form that is easy to understand. It presents the results of operations and the financial position of the company. Four commonly used statements are: Balance sheet, Income Statement, Cash Flow Statement and Statement of retained earnings.
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Finished goods
Items that have been through the manufacturing process, are complete and are suitable for sale
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