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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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Net Price

Price after all discounts, rebates, etc., have been allowed.

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New Engineering Contract (NEC)

A set of standard contracts used in construction in the UK

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Non-Monetary Incentives

Incentives such as public recognition, endorsements in the form of public case studies, willingness to provide references, sharing processes and techniques, sharing knowledge and other goodwill gestures can be powerful, intangible incentives that increase visibility and market worth of the supplier. However, buyers and suppliers must be realistic in evaluating the true worth of such incentives. A poorly positioned customer may not be able to provide valuable non-monetary incentives to a well-positioned supplier. On the other hand, a customer that is relatively small, but well regarded in its industry may be very well positioned, particularly if its industry is one that the supplier considers strategic.

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Non-cashable savings

One-time savings that do not reduce the ongoing future budget

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Non-governmental organisation (NGO)

A non profit organisation that operates independently of any government

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Non-verbal communications

Using pictures, facial expressions or body language to convey information

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Net amount

Total amount payable excluding taxes

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Non-Core Competencies

Activities that are conducted within an organization that do not contribute to sustainable competitive advantage.

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Non-Zero Sum Games

A term used with Game Theory. The size of the pie is not fixed, therefore everyone can do better, or much worse.

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Non-critical Products/Services (also referred to as Routine Products/Services)

One of the four Kraljic Matrix quadrants. In general these are products or services with relatively low value and there are many suppliers. These products/services give buyers very few commercial problems from a purchasing point of view.

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Non-linear pricing

The unit price does change as the quantity ordered changes

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OECD Anti-Bribery Convention

Establishes legally binding standards to criminalize bribery of foreign public officials in international business transactions and provides for a host of related measures that make this effective. OECD and ISO 37001 are international standards used to support the elimination of bribery.

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