Dictionary of Procurement Terms

A forecasting technique for the purpose of predicting future conditions that relies on a structured panel of subject matter experts (SMEs). The SMEs answer questionnaires in the first round. In subsequent rounds, the SMEs' forecasts from the previous round are provided, along with their rationale for their judgments. They are then encouraged to revise their answers in consideration of the input from the other SMEs.

The willingness and ability to buy specific quantities of goods at alternative prices in a given time period. (Schiller 2000)

An all-inclusive method conducted to quantify, with reasonable accuracy, the anticipated material requirements that will be needed to support the entity’s operations. See also: Market Analysis, Supplier Analysis.

1. A binding legal agreement that links spend data by dates and allows for rebates and discounts through automated contract management systems. Pricing is based on historical usage. 2. A contract under which a contractor/supplier agrees to provide goods or services to a purchaser on a demand basis. See also: Market Analysis, Blanket Order.

A graphical depiction of the relationship between the price of goods or services and the quantity demanded for a set time period.

Funds in a bank account that can be withdrawn at any time without notice or penalty (e.g., checking account).

A measure of the change in the quantity of a good purchased or demanded in relation to a change in its price.

The amount of inventory required for a given item.

All activities and costs for the removal from a construction site of supplies, equipment, and personnel once work is completed. See also: Mobilization.

A fee charged by a carrier against a consignee, consignor, or other responsible party to compensate for the detention of the carrier's equipment in excess of allowable free time for loading, unloading, reconsigning, or stopping in transit. The term is also used by suppliers of material delivered in a variety of returnable containers, such as gas cylinders, rail containers, and equipment.