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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
BID
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
Bond
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
Brand
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
Broker
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
Budget
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
BuyBack
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.
Buyer
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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