Procurement Glossary

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

Penalties
Expenses incurred to cover damages (e.g., late delivery penalties)

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

Purchasing portfolio
List of categories, amenities, and suppliers

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

Market price
Prices defined according to indices

Procurement
In English, procurement refers to supplies.

Productivity
Projects implemented to reduce costs

Procurement 
In English, purchasing refers to buying.

Purchasing Price Variance (PPV)
In French, purchasing price variance refers to the difference between the actual purchase price of a product, component, or material and the standard price defined in the system.

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