In Procurement, OEM stands for Original
A company is referred to as an OEM if they
assemble and sell a product, made up of parts sourced
from other companies, under their own brand name.
For example, Company A build and sell their
own pumps that include a specific brand of pulse timers
bought from Company B. All labeling is removed
and the complete pump is sold under Company A's
Company A is classed as an OEM.
open selective tendering
The two main types of Tendering are Open and
In Open Tendering, any supplier can submit a
bid, which means more competition. On the down-side,
this can mean a lengthy process evaluating the bids.
In Selective Tendering, a pre-qualification
process narrows down the potential suppliers, and only
these suppliers are invited to submit a bid. This
potentially means less competition in the process, but
more suitable applicants bidding.
BPO (Business Process Outsourcing) is when a
company contracts out a business function (eg:
procurement, marketing, payroll, accounts) to a third
For example, a rapidly growing energy company may
decide to outsource its Procurement function to a
management consultancy. This company would be contracted
to hire Procurement staff, and manage all of the
An example of Offshore BPO would be an
internet service provider outsourcing their customer
service center to an overseas party.