Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Price volatility
Prices that rise and fall repeatedly and unpredictably over short periods of time
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Price-skimming strategy
A pricing strategy that markets products in the early stages of their life cycle at a higher price than at a later stage
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Pricing schedule appendix
Additional pages, containing more details about the pricing schedule, at the end of the contract
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Primary sector
The first stage of the production and manufacturing process (e.g., farming and the extraction of raw materials)
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Private limited company (Plc)
A legal form of company in which ownership is apportioned through the number of shares held. Liability of the holders of these shares is limited to the share value and the shares cannot be traded
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Price-penetration strategy
A pricing strategy that aims to attract customers away from competitors by offering a lower price
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Pricing Model
The mechanism companies use to establish the price(s) between a company and its supplier. A pricing model is different from price as it includes mechanisms to determine optimum monetary exchange between and buyer and supplier.
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Primary packaging
The packaging that is in immediate contact with the product (e.g., small box, bottle, bag, etc.)
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Prioritization
The output from the assessment is analysed to prioritise the processes for automation.
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