Dictionary of Procurement Terms

Position title for a procurement professional or other staff who purchases or procures goods and services. See also: Law of Agency, Principal, Agent.

There are three principal relationships between buyers and suppliers: 1. Transactional: An arm’s-length relationship, wherein neither party is concerned with the well-being of the other. Price is the focus of the relationship. 2. Collaborative: A strategic relationship that results in the reduction of risk and uncertainty. This type of relationship creates interdependency and cooperation. 3. Alliance: A relationship that is based on institutional trust. Alliance partners share a vision of the future in which ethics take precedence over expediency.

An economic situation in which the supply of a good or service exceeds demand, resulting in lower prices.

The contractual right, established in a purchase document, to buy a good or service at a fixed price within a specified time. See also: Option.

The right of the buyer to select the carrier to be used for the shipment of goods when the buyer pays freight charges; the buyer’s right to name the carrier must be made part of the sales contract before the shipment of goods if the supplier prepays the freight.

A designation offered by the Universal Public Procurement Certification Council to procurement professionals responsible for performing essential functions within the procurement cycle (but who may or may not have management or supervisory responsibilities) who have demonstrated prescribed levels of professional competency in the field of public procurement.