Dictionary of Procurement Terms

The art, science, and technology of protecting or enclosing products for distribution, sale, storage, and use.

A document that itemizes in detail the contents of a particular package or shipment. It is provided to the carrier by the shipper and accompanies the shipment.

A flat platform, usually made of wood, metal, or composite material, on which goods are placed to be lifted and moved by a forklift truck.

A sequence of documents, including electronic, that documents activities or events by a person on behalf of an entity for the purpose of tracking or explaining actions taken or not taken.

The face value of a bond; the amount to be repaid when the bond is due.

Issued by NIGP: The Institute for Public Procurement, Pareto Accreditation recognizes those entities that lead the public procurement profession. Accreditation is valid for five years.

A graphic depiction of the frequency of defects and their cumulative impact.

1. Named after 19th-century Italian economist Vilfredo Pareto, this principle states that, for many outcomes, approximately 80% of consequences result from approximately 20% of causes. 2. As applied to supply management, the Pareto Principle states that 20% of an entity's purchasing orders represent 80% of its dollars spent. 3. As applied to inventory control, the Pareto Principle states that 80% of an entity’s stock represents only 20% of the total value of its inventory. 4. As applied to procurement, the Pareto Principle states that 20% of an entity’s purchases account for 80% of the entity's annual spend.