Dictionary of Procurement Terms

A document sent from the supplier to the buyer verifying details of the original purchase order. Also known as an order acknowledgement.

The level of stock of any item when an order is initiated for more of that item.

The process of retrieving items from an inventory to fulfill customer orders.

The predetermined standard order size that is placed with the supplier to replenish inventory.

A central record of orders issued.

The cost associated with issuing a purchase order or placing an order.

A law passed by a local government. See also: Bylaw.

A business or group of people that operate within an administrative and functional structure.

A graphical representation (e.g., diagram) that displays the relationships or reporting hierarchy among the people, departments, or functions of an administrative and functional structure.

The shared assumptions, beliefs, and values of an entity or business communicated by its leaders that determine the decisions, actions, and behavior of its employees.