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Procurement Dictionary

Common key terms used in procurement

1. RFI (Request for Information), is used to gather general information from potential suppliers about their services and to help inform future procurement decisions.

    

   RFQ (Request for Quotation), is a request for detailed information on prices and conditions based on a concrete specification.

    RFP (Request for Proposal),

   PO (Purchase Order), is an official document created by an internal customer that authorizes a purchase transaction for goods or services from a supplier.

   PR (Purchase Requisition), is handed to the purchasing team to procure a certain quantity of a material or service on a certain date

   Bid In procurement, competitive bidding solicits the best price, quality, and terms for purchased goods or services.

   Forecasting is the estimation of future spend in order to predict demand and cost changes.

   Supplier , a person or an organization that provides their products or services against a payment.