Procurement Dictionary

Procurement Key Terms

  1. Bid-competitive bidding that solicits the best price, quality, and terms for purchased goods or services.
  2. Buyer-a professional or entity that purchases goods or services on behalf of an organization.
  3. Change Order Form- a written document that modifies an existing purchase order.
  4. Contract-A legally binding agreement between organizations, typically outlining the terms and conditions of a procurement arrangement.
  5. Contract Amendment- a written document that modifies an existing contract, usually after the initial agreement has been signed.
  6. Invitation to Bid (ITB)-is inviting suppliers/vendors to submit proposals, often prioritizing the lowest price for sought out goods or services.
  7. Invitation to Quote (ITQ)-is to obtain competitive pricing for specific goods or services.
  8. Invoice-document issued by a supplier/vendor that details the goods or services provided, cost, and total amount due by the organization.
  9. Procurement Forecast- analysis and prediction of future demand for goods or services.
  10. Purchase Order (PO)- an official document created by a buyer/purchasing agent that authorizes a purchase transaction for goods or services from a supplier/vendor.
  11. Purchase Requisition (PR/Req)-request to the purchasing team to procure a certain quantity of a material or service.
  12. Procurement- the process of purchasing goods or services needed by an organization or department.
  13. Receipt/Receiver- a document or process confirming the receipt of goods or services from a supplier/vendor.
  14. Request for Information (RFI)- used to gather general information from potential suppliers/vendors about their services and to help inform future procurement decisions.
  15. RFP (Request for Proposal) outlines specific service requirements and invites suppliers/vendors to submit proposals outlining how they can fulfill those needs.
  16. RFQ (Request for Quotation), Request for detailed information on prices and conditions based on a concrete specification.
  17. Supplier/Vendor- person or an organization that provides their products or services against a payment.