Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
PREQUALIFICATION OF VENDORS
The screening of potential vendors in which such factors as financial capability, reputation and management are considered when developing a list of qualified vendors. See Vendors List, Qualified Vendor/Responsible Vendor.
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PURCHASE MANUAL
A document that stipulates rules and prescribes procedures for purchasing with suppliers and other departments.
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Packing
The process of preparing goods for storage or distribution by protecting the contents from outside elements
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Pareto analysis
A Pareto analysis helps prioritize decisions to know which ones will have the greatest influence on overall objective.
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PUBLIC PURCHASING
The process of obtaining goods and services for public purpose following procedures implemented to protect public funds from being expended extravagantly or capriciously.
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Packaging
The process of covering an item in a specified material to protect the item and in some cases make it more appealing to the customer
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Packing list
A document which itemizes in detail the contents of a particular package or shipment.
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Palletisation
Performing material handling tasks, such as storing and shipping products, using pallets
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Pareto Principle
A management tool based on writings of Vilfredo Pareto, an Italian economist. The principle is that most of the occurrences of any happening are caused by a small percentage of the population. Applied to purchasing management it means that the largest percentage of cost reductions can be obtained from a small percentage of the items purchased or from a small percentage of the number of suppliers used. Erroneously sometimes referred to as the 80-20 rule.
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Partial payment
The payment authorized in a contract upon delivery of one or more units called for under the contract or upon completion of one or more distinct items of service called for thereunder.
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