Dictionary of Procurement Terms

A graphic illustration used in quality control that helps identify and sort possible causes for a problem or effect. Also known as a Fishbone Diagram.

Latin term meaning, “Let the buyer beware.” It implies that the purchaser/buyer is responsible for the quality assurance of a product or service.

Latin term meaning, “Let the seller beware.” It implies that the seller bears responsibility for product defects and inferior quality issues and must satisfy these concerns to the buyer’s satisfaction.

A federal agency of the U.S. Commerce Department that provides access to census figures that can be helpful for supply management strategic planning. It lists a host of demographic data, including median household income, education, and population statistics.

An organizational structure in which the rights, powers, duties, and authority relating to procurement are vested in the chief procurement officer (CPO). While the CPO may delegate some of these powers to others, the final authority resides with them. See also: Decentralized Purchasing.

Transportation/carrier rates are quoted in Cwt., which is determined by dividing the actual weight in pounds by 100.

A document submitted by a supplier or manufacturer that gives the buyer with a written affidavit that the goods or services delivered fulfill the contractual requirements.