Procurement Glossary

Browse 8 procurement terms defined in plain English, from the cultural dictionary of computing.

8 Procurement Terms

Build vs Buy Debate: The recurring decision over whether to create an internal solution or purchase and integrate an external product or service.
Framework Agreement: A high-level contractual structure that defines the general terms under which future specific transactions, orders, or statements of work will operate. It is...
Procurement Security: The security review and risk controls applied when acquiring software, hardware, cloud services, or vendors. Procurement security aims to catch risky...
Purchase Order: A formal document issued by a buyer authorizing the purchase of goods or services under specified terms. In enterprise startups, getting the purchase order...
Request for Proposal: A formal document issued by a buyer inviting vendors to respond to specified requirements, pricing, and implementation details. RFPs are common in enterprise...
RFP: Request for Proposal — a formal document issued by an organization soliciting bids from vendors or contractors, specifying technical requirements, evaluation...
Technical Evaluation: The phase in a buying or diligence process where a product is reviewed for technical fit, architecture, security, integration, and performance. Startups...
Value Engineering: The discipline of helping buyers quantify the economic value of a product so a purchase can be justified internally, especially in enterprise deals. Value...