Dictionary of Procurement Terms

1. The minimum weight, as defined by law, of a shipment entitled to a reduced freight rate. 2. The shipment amount that fills a freight car (or truck). 3. A load that fills the maximum capacity of a transporting unit.

A company that transports goods or people, usually over a fixed route and on a fixed schedule. See also: Common Carrier.

A carrier’s claim on assets pending collection of freight cost or other charges.

All costs associated with holding goods in stock (e.g., direct and indirect administrative costs, opportunity costs, damage, obsolescence, insurance, taxes). See also: Procurement Cost.

1. The act of carting or transporting, generally used to identify the local delivery of goods received from a carrier. 2. The cost of such transportation.

A organized group whose purpose is to fix prices at a high level by restricting competition.

A reduction in the full cost of a good or service when payment is made within a specified time period. See also: Payment Terms, Prompt Payment Discount, Discount.

The total amount of cash or cashequivalent that an organization pays and receives.

Payment made to a contractor prior to initiating the performance of the contract.

A requirement for full payment for goods and services at the time of receipt.