Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Low-cost country (LCC),
Low-cost-country sourcing (LCCS). A procurement strategy to source from low-cost countries (LCC) either because of reduced production price, or improved capacity, quality, or logistics
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MANUFACTURER
A business that makes or processes raw materials into a finished product.
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MODEL PROCUREMENT CODE (MPC)
A publication approved by the American Bar Association which sets forth procurement statutory principles and policy guidelines for managing and controlling the procurement of supplies, services and construction for public purposes; administrative and judicial remedies for the resolution of controversies relating to public contracts; and a set of ethical standards governing public and private participants in the procurement process.
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MRO
Abbreviation for "maintenance, repair, and operating supplies." Often assigned to one or more buyers in a purchasing organizational structure.
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Machine Learning
The process that allows software robots and AI to learn new processes through pattern recognition rather than needing to be individually and precisely programmed for each new situation
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Maintenance, Repair, and Operating supplies (MRO)
Products that are necessary for keeping the organization running in general, and for support activities in particular. Classified by most organizations as an indirect spend category, MRO typically refers to any activity.
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MANDATORY
Required by the order stipulated, e.g., a specification or a specific description that may not be waived.
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MAPS
The Minnesota Accounting and Procurement System. Quite often MAPS or AGPS is referred to when speaking of the Procurement side of the system and GFS is referred to when speaking of the accounting side.
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MOQ
Minimum Order Quantity - The amount required to place an order.
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MWBE
Minority and Women Business Enterprise. Various organizations certify MWBE suppliers. This designation is an important consideration to and a component of a supplier diversity program.
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Macro environment
External factors beyond an organisation’s control that will influence its success, such as government policy, technology, and social and cultural factors
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Make or buy
A decision about what products or services an organisation will manufacture or provide themselves in-house, and which will be purchased from outside sources
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