Dictionary of Procurement Terms

Extra quantity of an inventory item retained to reduce the risk of stock outages.

Transactions involving the exchange of goods or services for money.

A marketing strategy in which a short-term incentive or added value is offered for free or at a reduced price in an effort to increase sales to customers.

A person designated as a business' principal point of contact with customers for the purpose of selling that business' goods or services and ensuring customer satisfaction.

A government-imposed consumption tax on the sale of goods and services.

A geographical area or customer group assigned to a business' salesperson or team.

Property having some value in excess of its basic material content or scrap value, but it is in such condition as to be no longer usable, and its repair or rehabilitation for use is clearly impractical.

One or more units selected from the material or process lot and represented as a specimen of quality.

A technique that avoids the necessity of having to examine each item in a population but is sufficient to determine whether the entire population complies with an acceptable quality level or stated requirements.