Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
LIFE CYCLE COSTING
A procurement evaluation technique which determines the total cost of acquisition, operation, maintaining and disposal of the items acquired; the lowest ownership cost during the time the item is in use.
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LOWEST RESPONSIBLE VENDOR
The vendor with the lowest price whose past performance, reputation and financial capability is deemed acceptable.
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LTL
Less truckload. Often refers to a freight rate that is usually higher than for a full truckload.
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Landed cost
Cost of a product plus the relevant logistics costs, such as transportation, warehousing, handling, etc.
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Last in-first out (LIFO)
Items purchased last are sold first. As these items are likely to be higher in value, the remaining inventory has a lower value
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Law of supply
As the price of an item increases the supply of the item will also increase, other factors remaining constant
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LIFO
An abbreviation for %u201CLast-in, First-out.%u201D An accounting method of valuing inventory based on the assumption that the last items purchased are the first sold. Compare with FIFO.
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LPO
Legal Process Outsourcing refers to the practice of a law firm obtaining legal support services from an outside law firm or company that provides processes supporting legal services, such as discovery, case management, transcription services, etc.
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Landfill
Landfill is a system of garbage disposal in which the waste is buried between layers of earth which has the effect of building up low-lying land
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Law of demand
The quantity of an item purchased varies inversely with its price, other factors remaining constant
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Lead time
The lapse of time between placing an order with a supplier and receipt of the goods
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