Glossary/Definitions

Question 1

Artificial Intelligence (AI)

Answer 1

Machines that display human-like intelligence

Question 2

Assets

Answer 2

Items of value owned bu an organisation, which can be used to meet debts

Question 3

Audit

Answer 3

An official inspection conducted, either by the procurement organisation itself or by an independent third party, to ensure compliance with requirements and standards

Question 4

Batch quantity

Answer 4

Number of products produced at a time

Question 5

Benchmark

Answer 5

Comparing an element of one business, such as price, quality or service, against another

Question 6

Bid

Answer 6

Offer of a price, may be a response to an invitation to tender

Question 7

Bill of materials (BOM)

Answer 7

A comprehensive list of components, items, materials & parts to create a product, essentially a recipe for the production of an item

Question 8

Boycott

Answer 8

Protest by refusing to deal with or buy from a particular individual or organisation because of it’s behaviour

Question 9

Brand

Answer 9

The image of an organisation. The name, logo, slogan, colours etc, that differentiate it from the competition

Question 10

Budget

Answer 10

Financial plan for a set period of time on how much can be spent

Question 11

Buffer Stock

Answer 11

Amount of stock held as inventory at any time in addition to immediate requirements

Question 12

Capital Asset

Answer 12

Tangible, non-current (or fixed) assets

Question 13

Carriage Deals

Answer 13

Negotiations to achieve the best possible cost

Question 14

Centralised Structure

Answer 14

Activities carried out at one central location

Question 15

Charity

Answer 15

A not-for-profit organisation with the objective of raising awareness or helping its chosen cause

Question 16

Cloud Computing

Answer 16

The delivery of IT services such as storage and networking which are hosted by a third party and accessed over the Internet

Question 17

Co-operative

Answer 17

A people centred enterprise owned and run by an for its members, which either reinvests any profits or returns them to its members

Question 18

Code of conduct

Answer 18

A series of rules set by an organisation that define suitable behaviours and values that should be used an applied by a member of that organisation, for the purpose of acting in a suitable manner, as well as demonstrating uniformity and upholding the standards of the organisation

Question 19

Code of ethics

Answer 19

A document detailing acceptable behaviour within an organisation

Question 20

Coercion

Answer 20

The art of forcing a person or organisation to do something through threatening behaviour

Question 21

Collaborative Style

Answer 21

Working together effectively, a style promoting win-win and trust within relationships

Question 22

Commodity

Answer 22

A raw material that can be bought or sold eg. oil, gas, coffee

Question 23

Competitive Dialogue

Answer 23

Multi-stage process involving feedback from potential suppliers prior to bidding