Procurement Wiki

Your knowledge hub for terminology and concepts in modern, data-driven procurement.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

No terms match your search.Clear search

3-Way Match

The 3-Way Match is a key control process in procurement and finance that compares three core documents before a supplier invoice is approved for pa…

Read definition

ABC Analysis / ABC Classification

ABC Analysis is a business management tool used to classify assets or resources according to their importance and value. This method helps companie…

Read definition

API (Application Programming Interface)

An API (Application Programming Interface) is a set of protocols and tools that allows different software systems to communicate and exchange data …

Read definition

BANF (Purchase Requisition)

A BANF (Bestellanforderung, or Purchase Requisition) is an internal request within an organization to initiate the procurement of goods or services…

Read definition

Catalog

In procurement, a catalog refers to a digitized listing of frequently purchased, standardized items, typically C-items (low-cost, non-critical good…

Read definition

Contract Award

A Contract Award is the process by which public or private procurers grant contracts for goods, services, or construction works. This is often done…

Read definition

Direct Procurement

Direct Procurement refers to the process of acquiring goods, services, or work that are directly incorporated into a company's end products or are …

Read definition

EDI (Electronic Data Interchange)

Electronic Data Interchange (EDI) refers to the structured, electronic exchange of business documents between companies.

Read definition

E-Procurement

E-procurement refers to the procurement of goods and services via digital tools and platforms. It utilises the internet to make procurement process…

Read definition

ERP System

An Enterprise Resource Planning (ERP) system is comprehensive software that helps organizations manage and automate critical business processes.

Read definition

FI Data

FI Data, short for Financial Accounting Data, refers to the financial records related to accounts payable (AP). These include all outgoing payments…

Read definition

Framework Agreement

A Framework Agreement (German: Rahmenvertrag) is a long-term purchasing agreement between a buyer and a supplier that defines general terms and con…

Read definition

Free-text Order (Freitextbestellung)

A Free-text Order (Freitextbestellung in German) refers to a procurement request where product or service details are entered manually by the reque…

Read definition

Guided Buying

Guided buying is a procurement strategy that uses a structured digital portal to steer employees toward approved suppliers and compliant purchasing…

Read definition

Incoterms

Incoterms (short for International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC).

Read definition

Indirect Procurement

It refers to the procurement of goods and services that are not directly included in the end products or core activities of a company. Instead, the…

Read definition

Inventory Management System

An Inventory Management System, often referred to in German as Warenwirtschaftssystem (WaWi), is software used to manage the procurement, stock, mo…

Read definition

Lasten-/Pflichtenheft (Requirements Specification)

In procurement and software projects, the Lastenheft (requirements specification) and Pflichtenheft (functional specification) are two key document…

Read definition

Low-Code Automation

Low-Code Automation refers to platforms and tools that enable users to automate workflows, tasks, or processes using visual interfaces and drag-and…

Read definition

Master Service Agreement (MSA)

A Master Service Agreement (MSA) is a contract that defines the legal, commercial, and operational terms for future transactions between two parties.

Read definition

Maverick Buying

Maverick buying is a corporate procurement practice in which employees purchase goods or services outside of established procurement policies or co…

Read definition

Operational Purchasing

Operational Purchasing refers to the day-to-day procurement of goods and services necessary to maintain the ongoing operational functions of an org…

Read definition

Pricing Sheet

A Pricing Sheet is a customized price list created for a specific buyer, buyer group, or project. Unlike general rate cards or public catalogs, pri…

Read definition

Procurement

At its core, procurement refers to the process of obtaining goods or services from external sources. This process includes a wide range of activiti…

Read definition

Procurement Catalog

A procurement catalog is a central repository or database of standardized goods, services, or materials available for purchase by a company. It all…

Read definition

Procurement Platform

A Procurement Platform is a digital solution that centralizes and streamlines procurement activities across the entire source-to-pay (S2P) or procu…

Read definition

Procurement Process

A procurement process comprises all activities associated with the purchase of goods and services by an organisation. It begins with the identifica…

Read definition

Procure-to-Pay (P2P) Process

From requisition to final payment: a practical breakdown of the Procure-to-Pay process, its phases, and where AI is changing how procurement and fi…

Read definition

Product Group

A product group refers to a categorization/classification of similar goods, products or services that are grouped together based on common characte…

Read definition

Product Group Management

Category management refers to the strategic planning and management of product groups in retail in order to maximise efficiency and profitability. …

Read definition

Purchase Order (P.O.)

A purchase order (PO) is a legally binding document issued by a buyer to a supplier, specifying the goods or services required, the agreed price, q…

Read definition

Purchase Request (P.R)

A purchase request is an internal document used in companies to communicate the need for goods or services. This document serves as a formal reques…

Read definition

Purchasing Strategy

A purchasing strategy is a systematic approach to optimising a company's procurement activities. It defines how a company can best procure the good…

Read definition

Rate Card

A Rate Card is a document that lists the standard prices, units, and descriptions of services offered by a supplier or service provider.

Read definition

RFx Processes (RFI, RFP, RFQ)

In procurement, RFI, RFP and RFQ are essential tools. Learn what sets the three processes apart, how they fit into the sourcing lifecycle, and how …

Read definition

Scouting

Scouting typically follows a structured process: 1. Need Identification; 2. Market Research; 3. Supplier Shortlisting; 4. Initial Qualification; 5.…

Read definition

Single Sourcing

Single sourcing is a procurement strategy in which a company purchases the goods or services it requires from just one supplier. This strategy is o…

Read definition

Source to Contract (S2C)

Source to Contract (S2C) is the process that covers strategic sourcing from the identification of a need to the conclusion of a contract. This proc…

Read definition

Source-to-Pay (S2P) Process

Source-to-Pay (S2P) is a process usually integrated in software that covers all steps from source selection to payment for goods and services. It b…

Read definition

Sourcing

Sourcing involves identifying, evaluating, selecting and managing suppliers or vendors to meet the needs and requirements of the business. It is a …

Read definition

Statement of Work (SoW)

A Statement of Work (SoW) is a formal project document that defines the scope, tasks, deliverables, timelines, pricing, and responsibilities for a …

Read definition

Strategic Purchasing

Strategic Purchasing is the targeted and long-term planning and procurement of goods and services aimed at maximising the value contribution of the…

Read definition

Supplier Lifecycle Management (SLM)

Supplier Lifecycle Management is a strategic approach to managing supplier relationships, from initial onboarding to final offboarding. It includes…

Read definition

Supplier Relationship Management (SRM)

Supplier Relationship Management (SRM) refers to the systematic approach that companies use to evaluate and manage relationships with their supplie…

Read definition

Supplier Repository

A Supplier Repository is a centralized database that stores and manages all relevant information about a company’s current and potential suppliers.…

Read definition

Tail Spend

Tail spend refers to a company's spending on goods or services that represent only a small percentage of total expenses but requires significant ad…

Read definition

Tenders

Tenders are formal procedures in which contracting authorities request offers for goods or services. They serve to promote transparency and competi…

Read definition

Tier 1, 2 & 3 Suppliers

Tier suppliers are part of a supplier hierarchy in the production chain, which is primarily used in the automotive and electronics industries.

Read definition

See the platform behind the definitions

Book a meeting