Purchasing glossary


Are you unfamiliar with all the terms, acronyms and expressions used in the world of purchasing?

Our Purchasing Glossary has been designed to simplify the sometimes complex terms used in the world of purchasing, making it easier to understand this technical language.

In this glossary you will find :

💡 Clear, precise definitions

💡 In-depth explanations for optimum understanding.

💡 Frequent updates to stay ahead of the curve.

Purchasing glossary

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Supplier panel 
All suppliers selected within a family or category, capable of producing identical or equivalent parts.

Costs to cover a loss (e.g. penalties for late delivery).

Purchasing policy 
The set of objectives and strategies that a purchasing department sets itself to serve the company's project.

Purchasing portfolio 
List of categories, amenities and suppliers.

It can be expressed in several ways, with or without a cost model, indexed or not: - Cost model: breakdown of a product's final price (commodity price, processing price, transport price, etc.). - Without cost model: the buyer has no visibility on the price breakdown (final price only). - Indexed: dependent on market fluctuations - Non-indexed: fixed price defined with the supplier

Market price
Index prices.

Procurement refers to supplies.

Projects implemented to reduce costs.

Purchasing refers to buying.

Purchasing Price Variance (PPV) 
Purchase price variance refers to the difference between the actual purchase price of a product, component or material, compared with the standard price defined in the system.
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