Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Process owner
The individual who provides process insight and authority for processes to be deployed.
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Procure-to-Pay
Entails the process of purchasing a good or service and managing all steps through delivery and payment and is designed to support an end-to-end process that begins with requisitioning and ends with ready-to-pay files for upload into an accounts payable system.
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Procurement platform
The activities that determine the specification and quantities of a product or service prior to contracting for its supply. It is based on a balance of financial and non-financial requirements
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Product
The service or product you provide your internal or external customers.
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Product label
Part of the packaging of a product. The product label is the written information on the outer packaging that gives important information that needs to be communicated to the customer
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Procure to pay (P2P)
The process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services
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Procurement
The process of contracting and buying business requirements. Duties include specifications development, value analysis, supplier market research, negotiation, buying activities, contract administration, and perhaps inventory control, traffic, receiving and stores.
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Procurement Outsourcing
The process of turning over responsibility for functions related to purchasing, buying or procuring. Typically adopted for a company's indirect spend. Also referred to as "procurement transformation".
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Procurement specification
A document that presents prospective suppliers with a clear, accurate and full description of the organisation’s needs and enables them to propose a solution to meet those needs
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Product Family
A set of products that are considered as a single group when creating forecasts for planning purposes. Sometimes also referred to as a category or spend category.
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Product life cycle
The stages a product goes through, from initial concept through to decline and removal from the market
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