Procurement 1

📚 Important Words to Know
request for proposal (RFP) — a document inviting suppliers to submit bids for a specific product or service
purchase order (PO) — a commercial document authorizing a supplier to deliver specific goods or services at an agreed price
vendor management — the process of overseeing and controlling relationships with external suppliers and service providers
supply chain risk — the potential for disruptions or failures at any point in the supply chain that could affect operations
strategic sourcing — a systematic approach to procurement that optimizes costs and aligns supplier relationships with business goals
sole sourcing — purchasing from a single supplier when only one vendor can provide a particular product or service
competitive bidding — a procurement process where multiple suppliers submit offers and the best one is selected
vendor due diligence — the process of evaluating a supplier's financial stability, compliance, and capability before engagement
SLA (Service Level Agreement) — a contract defining the expected level of service between a supplier and a client
total cost of ownership (TCO) — the full cost of acquiring, operating, and maintaining a product or service over its lifetime