Bid Analysis -  Materials Management Vocabulary



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Back Order
Items ordered but not shipped due to a stock out or some other reasons. This is used as a measure of supplier performance and customer service

Balance of Payments
A measure for the difference in the flows of funds across a nation's boundaries

Balance of Trade
The difference between the value of a country's exports and imports

Balance Sheet
A statement of an organization's assets, liabilities and shareholder equities

Banker's Acceptance
A negotiable instrument used in financing overseas purchases, involving a bank's commitment to pay upon presentation of the document

Bar Code
These  are machine readable codes showing a pattern of alternating parallel bars and spaces, representing numbers and other characters. The major advantages of using bar coding technology in receiving and stores operations are the reduction in error rate and improved entry speed besides count accuracy

Bar Coding
Bar codes are machine readable codes (seen as cluster of straight lines) that are stuck on the packages/ products for easy identification and computerized record keeping. Bar coding is a process that involves sticking bar codes  where required. It is mostly used in Inventory control.

Best buy
It refers to a purchase made representing a combination of price, quality, timing and other elements of required service that are optimal in respect to the organizational requirement

Best Practice
An activity , operation or an over all system that has been successful in achieving the objective it was meant to is the best practice for the given objective for an organization

A bid is an offer ,usually in a sealed cover by a seller to a purchaser. It is considered to have legal sanctity. Usually, there is a time frame fixed for submission as well as opening of the bid. A bid can be Single part, in which all the Techno-commercial terms and conditions as well as the price are listed in one cover, Two part, in which the Techno-commercial part and the price part  are kept in separate cover and not opened at the same time, Three part, in which Technical, commercial and price part are submitted separately.

Bid Analysis
A comparison of the strengths and weaknesses of the various offers received in a competitive bidding process

Bid Bond
Also known as Bid security , it's monetary document submitted by a tender along with the bid. Bid bond's provision  is made in order to ward off unserious bids as in case the bidder refuses to accept the order later the bid bond is forfeited by the purchaser

Bid opening
It's an occasion determined by a specific day and time on which the bids received from the vendors are opened. Usually, the bids are opened in the presence of bidders, purchase executives and others who might be related to the purchase case

Bilateral Contract
A contract in which both of the contracting parties made promises to each other. Usually, such a contract is formed when an offer is considered and accepted by the purchaser or offeree

Bill of Exchange
A document drawn by the seller on the buyer, instructing the buyer to pay the amount of the purchase under specified circumstances

Bill of Lading
A carrier's contract and receipt for goods it agrees to transport from one place to another and to deliver to a designated recipient (consignee). There are numerous types of bills of lading:

1. A clean (clear) Bill of lading or a carrier receipted
bill of lading is provided when a shipment is deemed to be in good condition and contains no exceptions
2.An Export bill of lading is issued by an inland carrier to contract for the movement of goods from from an interior point of origin to a port for the ultimate movement to a foreign destination
3. A foul Bill of lading is a document where the master of the vessel has taken exception and stated that the goods were received in damaged condition and / or the shipment was incomplete
4. An ocean bill of lading is issued by an ocean carrier for marine transport of goods
5.An order Bill of lading is consigned to the order of a third party, usually the shipper or a bank, whose endorsement is required to transfer the title to the goods. This negotiable instrument of title must be surrendered to the carrier before the goods will be released.
6. A short form bill of lading is a deviation from the straight bill of lading in that it only refers to the contract terms but does not include them
7. A straight bill of lading consigned directly to the consignee and therefore is not negotiable. Accordingly , the goods will usually be delivered by the carrier without surrender of this type of bill of lading. A delivery receipt is used at the destination
8.A through bill of lading is issued by a shipping company or its agent, covering more than one mode of transportation or two or more carriers in a through movement.  

Bill of Materials
BOM or B/M is a list containing the quantity and description of all materials required to produce one unit of a finished product. A bill of material is an essential element in using a material requirement planning (MRP) system 

Blanket Order
A term commitment to a supplier for providing certain goods or services over a predetermined price. This system helps in reducing small orders 

A written instrument executed by a bidder or contractor and a second party (surety) to ensure fulfillment of the contractors obligations to a third party 

Bonded Warehouse
A warehouse where goods are stored until duties are paid or goods are otherwise properly released

A name, symbol, design or logo that an organisation uses to appear distinct from from those of others

Breach of Contract
A failure to perform any promise which forms a part of a contract

Breach of Warranty
If the material or product fails to meet the quality or other specification warranted by the supplier breach of warranty is said to have occurred

Break Even Analysis
A method for determining the output level at which revenues equal cost

Break Even Point
The output quantity at which an organisation's revenues equal its total cost, resulting in no profit or loss

A middle man who brings a purchaser and a seller together. He charges a fee for doing this job and can also provide some services. He has no ownership of the goods

A plan expressed in financial terms that spells out intended actions and the funding levels required for their completion. There may be direct materials budget, capital expenditures budget, operating expenses budget

Budget Deficit
It's a gap between the required fund and the available fund, for the given set of activities

Budgeting Process
It's the process of developing and implementing a budget. It involves steps like reviewing goals and objectives, defining required resources, converting then into monetary terms and control expenditure etc.

Business Cycle
A diagram of the fluctuations in the level of economic activity in a country over time

A type of counter trade in which a supplier supplies materials / services and takes a proportion of the buyer's output as payment for the investment.
It may also be an exchange of an old and used material with a new one.

A Purchasing designation in an organisation at the middle level.

Buyer's Market
A market condition in which supply exceeds demand and the economic forces of business cause prices to be close to the purchase's estimated cost.

Buying Strategies
Strategies that determine the frequency and timing of purchases. These strategies are influenced mainly by the market forces

Buying Team

It's a team consisting of experts, within the organisation , such as from operations, purchasing, Finance etc that takes actions related to buying 












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