Dictionary of Procurement Terms

Information on the items in stock showing stock level position.

The historic rate at which a stocked item is used based on the number of times the stock is issued to determine the annual (or periodic) turnover rate.

A unique code used for inventory purposes that may be comprised of numbers and letters that identify the attributes of each product (e.g., size, color, and manufacturer).

A contracting method that incorporates just-in-time delivery concepts, thus enabling the buyer to avoid carrying inventory to meet demand requirements. Suppliers own the inventory and deliver products directly to the customer with a predetermined time frame (e.g., 24 hours, three working days).

Written notice to the contractor to immediately stop all work. Work cannot resume until the stop work order is removed.

1. The act of storing, or state of being stored, in a designated place for safekeeping. 2. A function of warehousing that involves the receipt, putting away, and subsequent retrieval of an item. 3. Specific to technology, a computer memory that retains data for some period of time. Such storage can be categorized in many ways, including primary or secondary; readonly; random access; and magnetic storage.

The act of recording the details of stock movements and balances in value.

To provide for the efficient storage and handling of goods to be redistributed to the requisitioner, end user, or client department.

A contract document that provides for direct shipment to a consignee.

An arrangement between two or more parties to work together on a mutually beneficial project with each party retaining its own autonomy.