Procurement Terms



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Request for Information (RFI)
A Request for Information is a document or online invitation for a supplier to submit information about the goods and services they provide and any other supporting information that allows qualification about the organisation to be made. In more complex requirements, an RFI can be supplemented by a supplier communication day to provide more information to suppliers about the potential opportunity.
Procurement Process Sourcing
Request for Proposal (RFP)
A Request for a Proposal is a document or online invitation to submit a proposal for goods or services. They are generally used when the purchaser needs to understand the potential solutions available as opposed to when a specific product or service is required.
Procurement Process Sourcing
Request for Quotation (RFQ)
A Request for a Quotation is a document or online invitation to submit a quotation for specific goods or services. They are used when the purchaser knows what they need to procure and can be definite about the requirement.
Responsible Procurement
Sustainable Procurement is the commitment to considering environmental, social, and governance factors (ESG) in procurement decisions. These factors should be applied across all aspects of the procurement cycle. It means that the procurement processes comply with environmental laws, fair labor practices, resource consumption targets, and other core principles of ESG. These factors are becoming more important to overall business performance due to increased consumer requirements for sustainable goods and services. Due to this, sustainable factors are now a key pillar of the business requirements gathering activities.
Category Management Risk Management Sourcing Supplier Management Sustainability
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Reverse Auction
Reverse auctions, digitally referred to as eAuctions, are where suppliers bid to fulfill a buyer’s requirement of goods or services. Unlike forward auctions, where buyers compete and bids keep increasing, reverse auctions have suppliers competing amongst themselves. In most cases, bidding starts from the highest price and the lowest overall bid wins.
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RFX is a term used in procurement to refer to a request for information (RFI), request for proposal (RFP), or request for quotation (RFQ). These are types of procurement documents that are used to solicit information from suppliers or to request bids for a product or service. An RFI is typically used to gather general information about a supplier's capabilities, products, and services. An RFP is used to request detailed proposals from suppliers, including pricing, technical specifications, and delivery schedules. An RFQ is used to request price quotes for specific products or services.
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Rogue Spend

Maverick spend, sometimes Rogue Spending, Non-compliant Purchasing, Off-contract Buying, Ad-hoc Purchasing or Independent Sourcing, refers to the practice of purchasing goods or services outside of the established procurement policies, procedures, and controls of an organization. This can include purchases made without proper authorization, outside of approved supplier contracts, or without the use of preferred suppliers.

Maverick spend can lead to a range of negative outcomes for an organization, including higher costs, reduced process efficiency, decreased compliance, and increased risk. When purchases are made outside of the established procurement process, it can be difficult for procurement professionals to manage supplier performance effectively, negotiate favorable pricing, or identify opportunities for cost savings.

To address maverick spend, organizations typically implement policies and procedures to promote compliance with procurement policies, and specialized software to help monitor and manage procurement activities. This can include the use of spend analytics, supplier management systems, and e-procurement platforms to streamline the procurement process and improve visibility into purchasing activities.

By reducing maverick spend and increasing compliance with procurement policies, organizations can improve their financial performance, reduce waste and inefficiency, and better manage risk.

Risk Management Spend Analysis