jargon buster

Aggregation - form of consolidation of orders or invoices

AP - Advanced Procurement

APUC - Advanced Procurement for Universities and Colleges (Centre of Expertise)

BPI - Best Practice Indicators

BPR -Business Process Re-engineering

Cat A - Category A Commodities

Cat B - Category B Commodities

Cat C - Category C Commodities

CoE - Centre of Expertise

Collaboration - procurement staff from one organisation sharing information with staff from another. The term includes working with and sharing information with a long-term supplier to improve performance and minimise costs

Contract Management - process of monitoring the performance of a supplier to ensure they are complying with the terms of the contract

CRS - Constant Recovery Service

CSF - Critical Success Factor

CSGPD - Collaborative and Scottish Government Procurement Division

EDI - Electronic Data Interchange. Developed in the 1960s using an early principle of sending and receiving messages entirely electronically. Used predominantly by large companies with huge volumes of commercial traffic and, more often than not, involved in retail or production

Electronic Commerce - transfer of data in an electronic format

Electronic Invoice Presentment and Payment (EIPP) - order process where an eProcurement System is used to place the order and the Integrated/Embedded procurement card is used for payment. The transfer of data/financial information through Electronic Invoice Presentment (EIP) and payment made electronically. This combination constitutes detailed invoice level information in an electronic format. The transition from manually processed paper checks to electronic invoices and electronic payments.

Electronic Invoice Process - invoice process where receipt, reconciliation and match are all electronic

eAuction - online exercise in which suppliers compete against each other with open bids for the right to provide goods or services to the buyer

eCommerce - transfer of data in an electronic format

eProcurement - eProcurement applications deliver on-line Procurement services. Key features include: electronic catalogues, punch out to suppliers' websites for dynamic products, recurring requisitions, easy to use web access, workflow routings, electronic orders dispatched over the internet to suppliers, line item reporting capability (Elcom, Ariba). eProcurement provides a single standard platform to conduct business with suppliers.

eProcurement Order Process - order process where an eProcurement System is used to place the order

ePS - eProcurement Scotland

eSourcing - use of web-based technologies and electronic communications networks for the pre-contract phases of the purchasing process

ERP - Enterprise Resource Planning solution offers multiple modules that support major business processes: Production Planning, Finance, Sales, Human Resources, and Purchasing. ERPs can be expensive to implement (oracle, SAP) and develop

ERP Order Process - order process where an ERP is used to place the order

Government Procurement Card (GPC) - a commercial payment card available to all government departments and agencies (GDA). Embedded or 'virtual' GPC refers to the use of a GPC account number within an eProcurement system.

GSI - Government Secure Intranet

Indirect Goods - goods and services typically required to operate a GDA, often with little strategic value (also MRO).

Interface - simple data transfer between two systems

Integrated/Embedded Procurement Card - order process where an eprocurement system is used to place the order and the integrated/embedded procurement card is used for payment

Integration - two way, real-time data transfer between two systems

Invoice - demand from a supplier for payment detailing the goods or services provided their respective costs and the VAT due

ITT - Invitation to Tender

KPI - Key Performance Indicators

Leverage - aggregation of individual purchases to gain the benefits of bulk buying

Manual Order Process - order process where all steps are conducted manually

Matching - activity of comparing purchase orders, receipts, and invoices to ensure compliance

Maverick Spend - spend committed with a non-contracted supplier where a contract exists for the goods services required

MI - Management Information; purchasing data gathered by systems transformed into meaningful information by reporting applications

MIS - Management Information System

MIT - Management Information Tool

MRO - Maintenance, Repair and Operations (also indirect goods).

NP - National Procurement (NHSS Centre of Expertise)

Paper Invoice Process - invoice process where all steps are conducted manually

Pecos - Professional E-Commerce On-Line System (eProcurement system)

PQQ - Pre Qualification Questionnaire

Procurement - purchasing cycle from identification of requirement through to payment

Punch-Out - method by which a buyer interacts with a supplier's website and retrieves requisition content into a purchasing application for submission to internal processes

Purchase Order (PO) - legally binding document issued to a supplier for provision of goods or services

Receipt - document that quantifies the product or service received

Requisition - initial document listing the goods or services required

Reverse Auction - see eAuction

RFP - Request for Proposal

RFQ - Request for Quotation.ROI - Return on Investment. In eProcurement, the benefits achieved through use of the system over time minus the total cost of implementation and use.

Service Provider - contracted organisation providing your eProcurement solution. Generic term to include both system provider and/or service provider

SKU - Stock Key Unit, individual, unique item (in a catalogue)

SME - Small to Medium Enterprise (up to 250 headcount)

Specification - detailed explanation of what the client requires from a contractor

SRO - Senior Responsible Owner. The member of a GDA ultimately responsible for the delivery of a project to the business.

Strategic Items - goods and services that are relatively expensive and fundamental to an organisation

Three Way Match Process - invoice process where an order, receipt and invoice are matched before payment is made to a supplier

Two Way Match Process - invoice process where an order is matched against an invoice before payment is made to a supplier

UAT - User acceptance Testing. Process during implementation when users test that the system handles the business process as required

VFM - Value for Money, principle underpinning all public sector purchasing activity

Workflow - application by the eProcurement system of the GDA's business rules. Workflow defines the routing of data from one part of the procurement process to the next based on set rules

XML - eXtensible Mark-up Language - a meta or syntax language describing the data format of documents when they are transmitted electronically

Page updated: Thursday, August 11, 2011