Supply Chain Management and Procurement
Expert-defined terms from the Advanced Certificate in Compliance in Humanitarian Organizations course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
ABC (Activity‑Based Costing) – a costing method that assigns overhead and… #
Related terms: cost allocation, overhead. Example: Allocating transport costs to each relief convoy. Challenge: Data collection can be time‑intensive.
Acceptance – formal acknowledgement that delivered goods meet contract sp… #
Related terms: goods receipt, quality inspection. Example: Signing the acceptance form for medical kits. Challenge: Pressure to accept under emergency timelines may compromise quality.
Acquisition Planning – systematic process of defining procurement needs,… #
Related terms: procurement plan, market analysis. Example: Drafting a plan for seasonal food distribution. Challenge: Unpredictable disaster dynamics can render plans obsolete.
Advance Procurement – purchasing goods or services before a crisis occurs… #
Related terms: pre‑positioning, stockpiling. Example: Securing water purification tablets ahead of the rainy season. Challenge: Forecasting demand accurately to avoid excess or shortage.
Allocation – distribution of limited resources among competing humanitari… #
Related terms: resource prioritisation, needs assessment. Example: Allocating a limited vaccine batch to high‑risk districts. Challenge: Balancing equity with efficiency.
Alternative Supplier – a secondary source that can provide the same goods… #
Related terms: contingency sourcing, backup vendor. Example: Maintaining a list of alternative logistics firms. Challenge: Ensuring comparable quality and compliance.
Anti‑Corruption Measures – policies and controls designed to prevent brib… #
Related terms: integrity safeguards, compliance audit. Example: Requiring declaration of conflicts of interest for all bidders. Challenge: Enforcing measures in high‑risk environments.
Audit Trail – chronological record of all procurement actions, documents,… #
Related terms: transaction log, documentation. Example: Electronic system capturing each step from requisition to payment. Challenge: Maintaining completeness when operating offline.
Baseline Cost – initial estimate of the cost of goods or services used as… #
Related terms: cost estimate, budget line. Example: Baseline cost for a field hospital’s supplies. Challenge: Inflation and currency fluctuations can erode accuracy.
Beneficiary Feedback Mechanism – structured process for recipients to com… #
Related terms: client satisfaction, grievance redress. Example: Hotline for refugees to report damaged kits. Challenge: Ensuring feedback reaches decision‑makers promptly.
Bid – formal proposal submitted by a supplier in response to a solicitati… #
Related terms: tender, quotation. Example: A logistics company’s bid for transport services. Challenge: Evaluating bids fairly under tight deadlines.
Bid Evaluation Committee (BEC) – group of experts tasked with reviewing a… #
Related terms: evaluation matrix, scoring rubric. Example: A BEC assessing technical and cost proposals for a water project. Challenge: Avoiding bias and ensuring transparency.
Bid Protest – formal objection raised by an unsuccessful bidder alleging… #
Related terms: appeal, grievance. Example: A vendor filing a protest after a contract award. Challenge: Managing protests without delaying critical aid.
Blanket Purchase Order (BPO) – long‑term agreement that allows multiple r… #
Related terms: framework agreement, contract. Example: A BPO for recurring office supplies across multiple field offices. Challenge: Monitoring cumulative spend against the limit.
Block Procurement – acquiring large quantities of a commodity for multipl… #
Related terms: bulk buying, pooled procurement. Example: Joint purchase of mosquito nets for several NGOs. Challenge: Coordinating delivery schedules and storage capacities.
Bond (Performance Bond) – financial guarantee provided by a supplier to e… #
Related terms: guarantee, surety. Example: A bond for construction of a temporary shelter. Challenge: Assessing supplier’s financial stability.
Brand‑Name Procurement – purchasing specific branded products rather than… #
Related terms: specification, brand loyalty. Example: Buying a WHO‑approved antimalarial brand. Challenge: Higher cost and potential supply constraints.
Break‑Bulk Shipping – transport of cargo that is not containerised, often… #
Related terms: freight, cargo handling. Example: Moving large water tanks via break‑bulk. Challenge: Higher handling risk and customs clearance complexity.
Brokerage (Procurement Brokerage) – intermediary service that matches hum… #
Related terms: facilitator, sourcing agent. Example: A procurement broker helping to source solar lanterns. Challenge: Ensuring broker neutrality and cost‑effectiveness.
Budget Line – specific allocation within the overall programme budget ear… #
Related terms: financial coding, expense category. Example: A budget line for “Emergency Food Supplies”. Challenge: Re‑budgeting when actual spend deviates.
Business Continuity Planning (BCP) – strategies to maintain essential pro… #
Related terms: risk management, contingency plan. Example: Establishing an off‑site procurement desk. Challenge: Testing BCP regularly in volatile settings.
Capacity Building – activities aimed at strengthening the procurement ski… #
Related terms: training, mentorship. Example: Workshops on ethical sourcing for local NGOs. Challenge: Measuring long‑term impact on compliance.
Certificate of Conformity (CoC) – document confirming that a product meet… #
Related terms: quality certificate, compliance. Example: CoC for safety helmets used by field staff. Challenge: Obtaining CoC from suppliers in low‑capacity markets.
Chain of Custody – documented process that tracks the movement and handli… #
Related terms: traceability, tracking. Example: Chain of custody for donated medical equipment. Challenge: Maintaining records when transfers occur across borders.
Clearance (Customs Clearance) – official approval allowing imported goods… #
Related terms: import permit, tariff. Example: Clearing relief food shipments at the port of entry. Challenge: Delays due to incomplete documentation.
Cluster Approach – coordination mechanism where humanitarian actors are g… #
G., Logistics Cluster) to improve procurement planning and response. Related terms: sector coordination, joint needs assessment. Example: Logistics Cluster sharing transport assets. Challenge: Aligning differing organisational policies.
Collateral Damage – unintended loss or damage to goods caused by external… #
Related terms: risk, loss. Example: Pallets of food damaged by flooding. Challenge: Incorporating such risks into insurance and contingency planning.
Compliance Audit – systematic review of procurement processes to verify a… #
Related terms: internal audit, monitoring. Example: Audit of procurement for a cash‑transfer programme. Challenge: Balancing thoroughness with operational urgency.
Confidentiality Clause – contractual provision that restricts disclosure… #
Related terms: non‑disclosure, data protection. Example: NDAs for bidders during a competitive tender. Challenge: Enforcing clauses across jurisdictions.
Consignment Stock – inventory owned by the supplier but stored at the hum… #
Related terms: vendor‑managed inventory, just‑in‑time. Example: Consignment of emergency medicines. Challenge: Tracking consumption accurately.
Contract Management – ongoing administration of a procurement contract to… #
Related terms: contract monitoring, SLA. Example: Monthly reviews of a transport contract. Challenge: Limited staffing for contract oversight.
Contractual Obligation – specific duties that a supplier must fulfil as s… #
Related terms: deliverable, term. Example: Obligation to deliver 10,000 water filters by a set date. Challenge: Enforcing penalties for late delivery.
Cost‑Benefit Analysis (CBA) – systematic approach to compare the costs an… #
Related terms: economic evaluation, ROI. Example: CBA comparing solar panels versus diesel generators. Challenge: Quantifying intangible benefits such as reduced emissions.
Cost Reimbursement – payment method where the donor reimburses actual cos… #
Related terms: expense claim, audit. Example: Reimbursing travel costs for procurement staff. Challenge: Ensuring accurate documentation.
Cross‑Docking – logistics practice of unloading inbound shipments and imm… #
Related terms: transshipment, hub‑and‑spoke. Example: Cross‑docking food parcels at a regional warehouse. Challenge: Coordinating timing to avoid bottlenecks.
Customs Bond – guarantee posted to customs authorities ensuring payment o… #
Related terms: security, import guarantee. Example: Posting a customs bond for a large shipment of tents. Challenge: Securing sufficient financial backing.
DCI (Donor Compliance Index) – metric used by donors to assess how well a… #
Related terms: performance indicator, scorecard. Example: A high DCI reflecting strong audit findings. Challenge: Aligning internal processes with diverse donor expectations.
Delivery Order – document authorising the release of goods from a warehou… #
Related terms: dispatch note, release order. Example: A delivery order for school supplies to a field office. Challenge: Ensuring the order matches the original contract terms.
Demand Forecasting – estimation of future procurement needs based on hist… #
Related terms: projection, needs assessment. Example: Forecasting demand for winter blankets in a mountainous region. Challenge: Unpredictable displacement patterns.
Direct Procurement – purchasing activities carried out by the humanitaria… #
Related terms: in‑house sourcing, self‑procurement. Example: An NGO directly buying solar panels. Challenge: Maintaining market knowledge and negotiating power.
Disaster‑Risk Financing – financial instruments (e #
G., Insurance, contingency funds) that provide resources for rapid procurement after a disaster. Related terms: risk pool, emergency fund. Example: Using a parametric insurance payout to fund immediate relief. Challenge: Triggering mechanisms and verification.
Distressed Procurement – procurement undertaken under extreme time pressu… #
Related terms: fast‑track, emergency purchase. Example: Buying emergency water containers within 24 hours. Challenge: Balancing speed with due‑process compliance.
Donor‑Specified Goods – items that a donor mandates must be purchased fro… #
Related terms: restricted procurement, donor requirement. Example: WHO‑approved antiretroviral drugs. Challenge: Limited supplier pool may increase cost.
Due Diligence – comprehensive assessment of a supplier’s legal, financial… #
Related terms: background check, vetting. Example: Reviewing a logistics firm’s anti‑trafficking policies. Challenge: Time‑intensive in fast‑moving crises.
Electronic Procurement (e‑procurement) – use of digital platforms for req… #
Related terms: online tender, procurement system. Example: Uploading a request for proposals on an e‑procurement portal. Challenge: Limited internet connectivity in remote sites.
Emergency Procurement Procedure (EPP) – streamlined set of steps approved… #
Related terms: fast‑track, urgent purchase. Example: EPP allowing procurement within 48 hours for life‑saving items. Challenge: Maintaining auditability while expediting.
Encumbrance – reservation of budget funds for a future procurement commit… #
Related terms: budget hold, pre‑commitment. Example: Encumbering funds for an upcoming vaccine shipment. Challenge: Tracking encumbrances across multiple projects.
Enforced Transparency – policy requiring public disclosure of procurement… #
Related terms: open data, publishing. Example: Posting awarded contracts on a donor portal. Challenge: Protecting sensitive security information while being transparent.
Equipment Maintenance Contract – agreement for routine servicing of donat… #
Related terms: service level agreement, warranty. Example: A maintenance contract for solar panels. Challenge: Negotiating fair rates in low‑margin markets.
Escalation Clause – contractual provision allowing price adjustments base… #
Related terms: price index, adjustment mechanism. Example: An escalation clause tied to the CPI for multi‑year contracts. Challenge: Forecasting triggers accurately.
Ethical Sourcing – procurement practice that ensures suppliers respect hu… #
Related terms: responsible procurement, CSR. Example: Sourcing coffee beans from fair‑trade certified farms. Challenge: Verifying compliance across complex supply chains.
Ex‑Works (EXW) – Incoterm indicating that the seller makes goods availabl… #
Related terms: Incoterms, delivery terms. Example: EXW for locally manufactured tents. Challenge: Buyer must arrange costly logistics in conflict zones.
Expeditionary Procurement – acquisition of goods that are pre‑positioned… #
Related terms: pre‑positioning, forward stock. Example: Expeditionary caches of water purification units near border areas. Challenge: Storage security and shelf‑life management.
External Audit – independent review of procurement processes conducted by… #
Related terms: independent verification, audit report. Example: External audit of a donor‑funded cash‑transfer procurement. Challenge: Audit findings may conflict with internal narratives.
FAO (Food and Agriculture Organization) Standards – set of guidelines for… #
Related terms: food safety, compliance. Example: Applying FAO standards to procured grain. Challenge: Aligning local supplier capabilities with global standards.
FAO‑COST (Food Assistance and Operational Support) – framework for coordi… #
Related terms: collaboration, joint procurement. Example: FAO‑COST facilitating pooled purchase of wheat. Challenge: Harmonising differing agency procedures.
FBO (Food‑Based Objective) – measurable goal defining the amount of food… #
Related terms: nutritional target, food security. Example: An FBO of 2,100 kcal per beneficiary per day. Challenge: Translating FBOs into procurement quantities accurately.
FIFO (First‑In‑First‑Out) – inventory management principle ensuring older… #
Related terms: stock rotation, inventory control. Example: FIFO for perishable medical supplies. Challenge: Maintaining strict adherence in multi‑site warehouses.
Fixed‑Price Contract – agreement where the total price is set and not sub… #
Related terms: lump‑sum, price certainty. Example: A fixed‑price contract for constructing temporary shelters. Challenge: Risk of cost overruns falling on the supplier.
Force Majeure – clause excusing non‑performance due to extraordinary even… #
Related terms: act of God, contractual excuse. Example: Invoking force majeure when a port is closed by flood. Challenge: Proving the event qualifies under the clause.
Freight Forwarder – logistics provider that arranges transport, customs c… #
Related terms: carrier, logistics partner. Example: Hiring a freight forwarder to move food pallets to a remote camp. Challenge: Vetting forwarders for compliance with humanitarian standards.
Full‑and‑Final Settlement (FAFS) – agreement where a supplier receives a… #
Related terms: settlement, release. Example: FAFS after completing a water trucking contract. Challenge: Negotiating a fair settlement amid disputed invoices.
Gantt Chart – visual project management tool showing timelines for procur… #
Related terms: scheduling, timeline. Example: Gantt chart tracking procurement milestones for a health kit rollout. Challenge: Updating the chart in rapidly changing crisis contexts.
Goods Receipt Note (GRN) – document confirming that delivered items match… #
Related terms: receiving report, acceptance. Example: GRN for a shipment of blankets. Challenge: Ensuring GRN is signed before goods are stored.
Green Procurement – purchasing decisions that consider environmental impa… #
Related terms: eco‑friendly, sustainability. Example: Selecting biodegradable packaging for hygiene kits. Challenge: Higher upfront costs may limit adoption.
HACT (Humanitarian Assistance Coordination Team) – inter‑agency body that… #
Related terms: coordination, joint planning. Example: HACT meeting to synchronise food imports. Challenge: Reconciling differing organisational policies.
Hazardous Material (HAZMAT) – substances that pose health, safety, or env… #
Related terms: dangerous goods, compliance. Example: HAZMAT certification needed for transporting disinfectants. Challenge: Limited carriers authorised to handle HAZMAT.
Heuristic Evaluation – informal assessment method for procurement softwar… #
Related terms: usability testing, review. Example: Heuristic evaluation of an e‑procurement portal. Challenge: Findings may not capture end‑user field challenges.
Humanitarian Logistics Cluster – sector‑specific coordination mechanism t… #
Related terms: logistics coordination, joint operations. Example: Logistics Cluster pooling trucks for a mass vaccination campaign. Challenge: Aligning differing SOPs and data systems.
Incoterm – set of internationally recognised trade terms defining respons… #
Related terms: trade term, delivery condition. Example: CIF (Cost, Insurance, and Freight) for imported medical supplies. Challenge: Selecting appropriate Incoterm for each procurement context.
Indicator‑Based Monitoring – systematic tracking of predefined performanc… #
Related terms: KPIs, measurement. Example: Monitoring indicator “percentage of contracts delivered on time”. Challenge: Data collection in insecure environments.
International Procurement Standards (IPS) – globally accepted guidelines… #
Related terms: best practice, compliance framework. Example: IPS recommending segregation of duties in purchasing. Challenge: Adapting IPS to local legal frameworks.
Inventory Management System (IMS) – software platform that tracks stock l… #
Related terms: stock control, ERP. Example: IMS used to monitor vaccine cold‑chain inventory. Challenge: Ensuring real‑time updates when connectivity is intermittent.
Joint Procurement – collaborative buying arrangement where multiple organ… #
Related terms: pooled buying, consortium. Example: Joint procurement of solar lanterns by three NGOs. Challenge: Aligning timelines and contractual requirements.
Key Performance Indicator (KPI) – quantitative measure used to evaluate t… #
Related terms: metric, performance tracking. Example: KPI of “average procurement cycle time”. Challenge: Setting realistic targets in volatile contexts.
Lead Time – total elapsed time from requisition issuance to delivery of g… #
Related terms: cycle time, turnaround. Example: Lead time of 10 days for emergency water filters. Challenge: Unpredictable transport routes can extend lead times dramatically.
Logistics Management Unit (LMU) – dedicated team within an organisation r… #
Related terms: operations unit, supply chain. Example: LMU overseeing distribution of food baskets. Challenge: Limited staffing may overload LMU during peak emergencies.
Logistics Cluster – coordination platform that brings together humanitari… #
Related terms: sector coordination, joint planning. Example: Logistics Cluster developing a shared transport schedule. Challenge: Reconciling differing security protocols.
Low‑Cost Procurement – approach that prioritises minimal expenditure whil… #
Related terms: cost minimisation, budgeting. Example: Selecting a low‑cost supplier for office stationery. Challenge: Avoiding compromise on safety or durability.
MAC (Maximum Acceptable Cost) – ceiling price set by a donor or organisat… #
Related terms: price cap, cost limit. Example: MAC of $5 per water purification tablet. Challenge: Limited supplier options may push prices above MAC.
Market Research – systematic collection and analysis of information about… #
Related terms: supplier analysis, price benchmarking. Example: Market research on locally produced mosquito nets. Challenge: Data may be scarce in conflict zones.
Material Safety Data Sheet (MSDS) – document providing information on the… #
Related terms: product safety, compliance. Example: MSDS for chlorine tablets used in water treatment. Challenge: Ensuring staff understand and apply the guidance.
MEAL (Monitoring, Evaluation, Accountability, and Learning) – integrated… #
Related terms: evaluation, feedback. Example: MEAL reviewing procurement timeliness after a disaster response. Challenge: Linking procurement data with outcome indicators.
Milestone Payments – staged disbursements tied to the achievement of pred… #
Related terms: progress payment, tranche. Example: Payment after 50 % of shelters are erected. Challenge: Verifying milestone completion in insecure areas.
Minimum Order Quantity (MOQ) – smallest quantity a supplier is willing to… #
Related terms: batch size, order threshold. Example: MOQ of 5,000 emergency blankets. Challenge: Balancing MOQ with limited storage capacity.
Mitigation Plan – proactive strategy to reduce identified procurement ris… #
Related terms: risk management, contingency. Example: Mitigation plan for potential customs delays. Challenge: Implementing controls without slowing response.
Multi‑Vendor Strategy – procurement approach that engages several supplie… #
Related terms: diversified sourcing, redundancy. Example: Using three different firms for water tank deliveries. Challenge: Coordinating multiple contracts and deliveries.
Negotiated Tender – procurement process where a limited number of pre‑qua… #
Related terms: restricted tender, dialogue. Example: Negotiated tender for specialist medical equipment. Challenge: Maintaining fairness and transparency.
Non‑Disclosure Agreement (NDA) – legal contract restricting parties from… #
Related terms: confidentiality clause, secrecy. Example: NDA signed before sharing product specifications with a bidder. Challenge: Enforcing NDAs across jurisdictions.
Non‑Governmental Organisation (NGO) – independent, not‑profit entity that… #
Related terms: civil society, aid actor. Example: An NGO managing the purchase of shelter kits. Challenge: Varying procurement capacities among NGOs.
Operational Risk – potential loss arising from internal processes, people… #
Related terms: risk, vulnerability. Example: Operational risk of staff turnover in the procurement team. Challenge: Developing risk registers that capture dynamic threats.
Out‑sourcing – contracting external service providers to perform procurem… #
Related terms: contracting, external provider. Example: Out‑sourcing freight management to a third‑party logistics firm. Challenge: Maintaining control over quality and compliance.
Performance Indicator (PI) – metric used to assess the efficiency, effect… #
Related terms: KPI, measurement. Example: PI measuring “percentage of contracts delivered within budget”. Challenge: Selecting indicators that reflect real‑world outcomes.
Performance #
Based Contract (PBC) – agreement where payment is linked to achieving specified results or service levels. Related terms: SLA, outcome‑based. Example: PBC for waste‑management services with penalties for missed pickups. Challenge: Defining measurable outcomes in humanitarian contexts.
Phased Procurement – staged acquisition plan that aligns with project mil… #
Related terms: staggered buying, rollout plan. Example: Phased procurement of solar panels over three years. Challenge: Adjusting phases when project scope changes.
Procurement Cycle – series of activities from needs identification throug… #
Related terms: process flow, lifecycle. Example: Procurement cycle for emergency food rations. Challenge: Compressing the cycle without sacrificing compliance.
Procurement Ethics – set of moral principles guiding fair, transparent, a… #
Related terms: integrity, code of conduct. Example: Refusing gifts from potential suppliers. Challenge: Cultural differences may affect perception of ethical behaviour.
Procurement Policy – formal document outlining the rules, procedures, and… #
Related terms: guidelines, SOP. Example: Policy mandating competitive bidding for contracts above $10,000. Challenge: Keeping the policy up‑to‑date with evolving donor requirements.
Procurement Risk Register – living document that records identified procu… #
Related terms: risk log, management tool. Example: Register listing risk of supplier insolvency. Challenge: Regularly updating the register amid rapidly changing circumstances.
Procurement SOP (Standard Operating Procedure) – detailed, step‑by‑step i… #
Related terms: process guide, workflow. Example: SOP for emergency tender issuance. Challenge: Ensuring staff adhere to SOPs under pressure.
Procurement Transparency Portal – online platform where procurement infor… #
Example: Portal displaying all contracts over $5,000. Challenge: Balancing transparency with operational security.
Public‑Private Partnership (PPP) – collaborative arrangement between huma… #
Related terms: joint venture, collaboration. Example: PPP with a telecom company for cash‑transfer distribution. Challenge: Aligning profit motives with humanitarian principles.
Quality Assurance (QA) – systematic activities designed to ensure that pr… #
Related terms: quality control, testing. Example: QA testing of water purification tablets before distribution. Challenge: Limited lab facilities in remote areas.
Quality Control (QC) – operational techniques and activities used to fulf… #
Related terms: inspection, QA. Example: QC sampling of rice shipments for moisture content. Challenge: Time constraints may limit thorough QC.
Quantity Survey – assessment of actual consumption versus forecasted quan… #
Related terms: stock audit, variance analysis. Example: Quantity survey revealing excess of emergency blankets. Challenge: Reconciling discrepancies across multiple warehouses.
RA (Risk Assessment) – systematic process of identifying, analysing, and… #
Related terms: risk analysis, hazard identification. Example: RA for importing pharmaceuticals into a conflict zone. Challenge: Limited data may hinder accurate risk scoring.
Re‑Procurement – repeat procurement of the same goods or services, often… #
Related terms: renewal, repeat order. Example: Re‑procurement of seasonal food parcels. Challenge: Maintaining price stability over successive cycles.
Rebate – partial refund or discount offered by a supplier after purchase,… #
Related terms: discount, incentive. Example: Rebate for ordering over 10,000 water bottles. Challenge: Ensuring rebates are documented and compliant with donor rules.
Recall – action to retrieve previously distributed goods that are found t… #
Related terms: withdrawal, product safety. Example: Recall of contaminated water purification tablets. Challenge: Tracking distributed items to effect a timely recall.
Reconciliation – process of matching procurement records with financial s… #
Related terms: audit, verification. Example: Reconciling purchase orders with bank statements. Challenge: Delayed invoices can complicate reconciliation.
Red Flag Monitoring – system for detecting warning signs of procurement i… #
Related terms: fraud detection, risk monitoring. Example: Red flag triggered by repeated awards to the same vendor. Challenge: Distinguishing legitimate patterns from suspicious activity.
Regulatory Compliance – adherence to laws, regulations, and standards gov… #
Related terms: legal compliance, statutory. Example: Complying with national public procurement law. Challenge: Navigating multiple, sometimes conflicting, regulatory regimes.
Request for Quotation (RFQ) – short document soliciting price information… #
Related terms: quotation, price request. Example: RFQ for 5,000 mosquito nets. Challenge: Ensuring equal information is provided to all respondents.
Request for Proposal (RFP) – detailed solicitation inviting suppliers to… #
Related terms: tender, solicitation. Example: RFP for a health information system. Challenge: Evaluating technical merit alongside cost.
Risk Mitigation – actions taken to reduce the probability or impact of id… #
Related terms: mitigation plan, control. Example: Risk mitigation by pre‑qualifying multiple logistics providers. Challenge: Allocating resources to mitigate low‑probability risks.
Risk Transfer – shifting procurement risk to another party, often through… #
Related terms: insurance, indemnity. Example: Transferring cargo loss risk via marine insurance. Challenge: Finding affordable coverage in high‑risk regions.
Safety Stock – extra inventory held to protect against demand variability… #
Related terms: buffer inventory, reserve. Example: Safety stock of 10 % for essential medicines. Challenge: Limited storage space may restrict safety stock levels.
Scope of Work (SOW) – detailed description of the tasks, deliverables, an… #
Related terms: deliverables, specifications. Example: SOW for constructing temporary health clinics. Challenge: Writing clear SOWs that avoid ambiguity.
Segregation of Duties – internal control principle that separates respons… #
Related terms: internal control, checks and balances. Example: One staff member creates purchase orders, another approves payments. Challenge: Staff shortages may force role consolidation.
Service Level Agreement (SLA) – contract clause defining the expected lev… #
Related terms: performance clause, KPI. Example: SLA stipulating 95 % on‑time delivery for logistics services. Challenge: Monitoring compliance in remote settings.
Supply Chain Visibility – ability to track and monitor the movement and s… #
Example: GPS tracking of convoy routes for food deliveries. Challenge: Limited connectivity hampers real‑time updates.
Supply Chain Mapping – visual representation of all nodes, flows, and rel… #
Related terms: network diagram, process map. Example: Map showing suppliers, warehouses, and field distribution points. Challenge: Keeping the map current as routes change.
Sustainable Procurement – acquisition strategy that integrates environmen… #
Related terms: green procurement, CSR. Example: Selecting refurbished laptops to reduce e‑waste. Challenge: Balancing sustainability goals with immediate humanitarian needs.
Supplier Diversity – policy encouraging procurement from a range of suppl… #
Related terms: inclusive sourcing, equity. Example: Allocating a portion of contracts to local women‑owned enterprises. Challenge: Verifying supplier eligibility and capacity.
Supplier Evaluation – systematic assessment of a vendor’s performance bas… #
Related terms: vendor rating, performance review. Example: Quarterly evaluation of a transport provider. Challenge: Obtaining reliable data from field sites.
Supplier Pre‑Qualification – process of vetting potential vendors against… #
Supplier Pre‑Qualification – process of vetting potential vendors against defined standards before they are invited to bid.