Dictionary of Procurement Terms

A corporation formed in the same state, province, or country in which it does business. See also: Foreign Corporation.

A shipping method in which goods are picked up at the seller's door and then delivered to the buyer's door.

The inspection of a second sample when the first sample does not lead to a decision to accept or reject.

The strategic reduction of an entity's or business' labor force by the elimination of employees.

A written order drawn up by a creditor directing a debtor to pay a sum of money to a third party or to the bearer.

The amount of an item to be delivered by the contractor to the end users under a blanket order as authorized or arranged for by the procurement department. May also be referred to as a sub-order release.

A refund of money paid (e.g., a refund of customs duties paid on imported material if the material is later exported).

A charge for hauling something between various locations by a transportation company.

A shipment made directly from a manufacturer or direct provider of goods to a buyer or purchaser in response to a request by the supplier who has received an order but does not carry the merchandise in its inventory.

The reasonable caution and care performed before finalizing a procurement or taking action in the course of managing an entity business project to demonstrate transparency and mitigate risk.