Sourcing and Procurement 
Glossary

Implied terms

Contractual terms that exist even if they are not stated in the contract, i.e. the law of the land

In-house

Something conducted within an organisation by its own workforce

Incentive

A type of award for the company or the service provider. Incentives can be monetary or nonmonetary. Incentives motivate service providers to make decisions that ultimately will meet the company's desired outcomes. In a Vested pricing model, incentives should be based on achievement of incremental performance of the Desired Outcome.

Inclusive price

Price for the whole amount, including taxes

Incorporated company

A company that is treated in law as being distinct from its owner

Indemnity insurance

security, a compensation for loss.

In the public domain

Generally known either by the public at large, or a certain section of it; readily obtainable outside of the organisation

Inbound Freight and Duties

Freight costs associated with the movement of material from a vendor to the buyer and the associated administrative tasks. Duties are those fees and taxes levied by government for moving purchased material across international borders. Customs broker fees should also be considered in this category.

Incentive Framework

A mechanism to measure performance and trigger incentive awards or payments.

Income Statement

A financial statement that measures a company's financial performance over a specific accounting period. Income statements are divided into two parts: an operating section and a non-operating section.

Incumbent Supplier

The current state supplier with whom a buyer has the preferred status, highest spend and / or longest relationship in a particular commodity area. An incumbent supplier implementation strategy involves negotiating directly with the current incumbent supplier in an effort to improve pricing, service terms, etc.

Independent demand stock

Finished products whose demand (ordering levels) is not dependent on other items of stock