CIPS L4M2 – Keywords Review | Questions &
Answers | Study Guide
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Terms in this set (227)
Liability being responsible for something
Business Case a justification for a proposed project or undertaking
on the basis of its investment and cost implications
balanced against its expected benefits
Corporate goals The targets set by an organisation or company that
will achieve the organisation's mission or objectives.
Straight rebuy Straightforward repurchase of an item bought
previously rather than considering an alternative
Modified rebuy A product/ service that has been sourced before but
requires a slight changed prior to being rebought
New purchase First-time purchase of a product or service.
Approved supplier list A list of approved suppliers who have the skills (for
example, technical, functional or financial) to
undertake the work
Call off The purchase of an item using a framework
agreement that has already been through a
procurement process
,Framework Agreement An arrangement that is put in place with one or more
suppliers for the supply of a range of suppliers or
services in which the prices (or a pricing formula) and
terms and conditions are all agreed for the duration
of the period of the arrangement
Volume discount A reduction in the usual price when a minimum
quantity is ordered (also called a bulk discount)
Critical path the sequence of steps in a project plan that together
determine the shortest time to complete the project
Business requirements The activities that meet the need of, and provide
value to, the business (also called business need)
Specification A detailed description of the product/ service
required
Supply market The marketplace in which suppliers conduct business
Key suppliers Externally located suppliers - either people or
organisations - who are essential to the successful
delivery of a business' objectives.
Invitation to tender A formal invitation sent to suppliers inviting them to
make an offer to supply goods or services
Regulatory bodies Public authorities or government agencies that have
responsibility for overseeing and supervising a
specified activity.
Capacity A measure of the rate at which the operations
function can transform its inputs into a quantity of
product or service outputs in a given timescale.
Target costs The expected cost of making a product or delivering
a service.
, Whole-life costs An estimate used to help buyers determine the end-
to-end cost of providing a service, manufacturing or
procuring a product. Also commonly referred to as
TCO or LCC depending on industry and sector.
Benchmarked prices Comparing an element of one business, such as
price, quality or service, against another
Continuous Improvement An ongoing effort to improve products, services, or
processes.
Criteria Principles or standards used to judge or decide
something
Performance Measures Standards, targets and metrics used to collect and
analyse information on the performance of an
individual or contract
Sourcing strategy A plan for creating an advantage by continually
reviewing current needs against purchasing
opportunities
Requisition An internal document raised by a user or a store to
communicate to procurement the need to buy the
product or service specified
Purchase order commercial document issued by a buyer to a seller
confirming the products or services required
together with the quantity and spec needed
Annual planning cycle Planning involves a number of activities, such as
analysis of opportunities, setting aims, exploring
options, producing detailed plans and reviewing the
plan against expectations. A cycle of activities as the
result where each activity might need the previous
activity revised before the final plan is accepted
Terms and conditions The rules that must be adhered to during a contract
(also called terms of service or terms of use).
Answers | Study Guide
Save
Terms in this set (227)
Liability being responsible for something
Business Case a justification for a proposed project or undertaking
on the basis of its investment and cost implications
balanced against its expected benefits
Corporate goals The targets set by an organisation or company that
will achieve the organisation's mission or objectives.
Straight rebuy Straightforward repurchase of an item bought
previously rather than considering an alternative
Modified rebuy A product/ service that has been sourced before but
requires a slight changed prior to being rebought
New purchase First-time purchase of a product or service.
Approved supplier list A list of approved suppliers who have the skills (for
example, technical, functional or financial) to
undertake the work
Call off The purchase of an item using a framework
agreement that has already been through a
procurement process
,Framework Agreement An arrangement that is put in place with one or more
suppliers for the supply of a range of suppliers or
services in which the prices (or a pricing formula) and
terms and conditions are all agreed for the duration
of the period of the arrangement
Volume discount A reduction in the usual price when a minimum
quantity is ordered (also called a bulk discount)
Critical path the sequence of steps in a project plan that together
determine the shortest time to complete the project
Business requirements The activities that meet the need of, and provide
value to, the business (also called business need)
Specification A detailed description of the product/ service
required
Supply market The marketplace in which suppliers conduct business
Key suppliers Externally located suppliers - either people or
organisations - who are essential to the successful
delivery of a business' objectives.
Invitation to tender A formal invitation sent to suppliers inviting them to
make an offer to supply goods or services
Regulatory bodies Public authorities or government agencies that have
responsibility for overseeing and supervising a
specified activity.
Capacity A measure of the rate at which the operations
function can transform its inputs into a quantity of
product or service outputs in a given timescale.
Target costs The expected cost of making a product or delivering
a service.
, Whole-life costs An estimate used to help buyers determine the end-
to-end cost of providing a service, manufacturing or
procuring a product. Also commonly referred to as
TCO or LCC depending on industry and sector.
Benchmarked prices Comparing an element of one business, such as
price, quality or service, against another
Continuous Improvement An ongoing effort to improve products, services, or
processes.
Criteria Principles or standards used to judge or decide
something
Performance Measures Standards, targets and metrics used to collect and
analyse information on the performance of an
individual or contract
Sourcing strategy A plan for creating an advantage by continually
reviewing current needs against purchasing
opportunities
Requisition An internal document raised by a user or a store to
communicate to procurement the need to buy the
product or service specified
Purchase order commercial document issued by a buyer to a seller
confirming the products or services required
together with the quantity and spec needed
Annual planning cycle Planning involves a number of activities, such as
analysis of opportunities, setting aims, exploring
options, producing detailed plans and reviewing the
plan against expectations. A cycle of activities as the
result where each activity might need the previous
activity revised before the final plan is accepted
Terms and conditions The rules that must be adhered to during a contract
(also called terms of service or terms of use).
