Dictionary of Procurement Terms

See Public-Private Partnership.

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 portable platform upon which goods are placed in unit loads to facilitate stacking and handling by mechanical equipment such as a forklift truck or pallet jack. (ISM, 2000)

All of the documentation of a procurement which is required for future reference and for audit purposes. (Business, 2002)

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

Issued by the National Institute of Governmental Purchasing Inc. (NIGP), the PARETO Award recognizes those agencies that lead the public procurement profession. Accreditation certification is valid for five years.

A subset of the 80/20 Pareto Law. The charts are used to distinguish between the critical and trivial problems. A commonly used quality control tool. (Business, 2002)

Italian economist and sociologist born in 1848. He created the 80/20 theory of income distribution which suggested that 80% of the wealth is created by only 20% of the income producers in an economy. This theory was adapted to a modernistic interpretation of the critical few and the trivial many. It has been further adapted to many supply management situations such as “80% of the purchasing volume is created by 20% of the purchase orders issued.” In the supply management area this is known as the 80-20 Rule or the Pareto Principle in its application to inventory control methodology. (Business, 2002)