Eskom Procurement Book 2015

GLOSSARY

Bonded warehouse: Place owned by persons approved by an appropriate government authority and who have given guarantees or bonds for the strict observance of revenue and/or import control laws. Such warehouses are used for the storage and custody of import merchandise, until customs are satisfied that the goods have been imported with the permission of the relevant government authority (e.g., are covered by a proper import licence) and/or the duties are paid or the goods are being reshipped without entry. In many developing countries with strict import regulations in force security and supervision over movements are provided by government. See also: Clearance of goods and In bond. Brand name: A name or trade mark by which one producer distinguishes his product from those of similar products by other producers in the same industry. A brand name identifies both the product and the producer of the product. See also: Brand name or Equal. Brand name or equal: A requisition by the user which indicates that his need will be

met by a particular (named) brand or products of other producers which have the same physical, chemical, metallurgical and/or other characteristics and will be able to satisfy the required need as effectively and efficiently. In a tender the same phrase is used to describe the product requirement precisely so that prospective tenderers know their goods have to be similar in all respects to the named brand product. This is done to increase competition so that the producer of the particular brand does not exploit his monopoly position. See also: Brand name. A failure of the supplier or the buyer, without a legally defensible excuse, to carry out his part of the duties and obligations as implied by the terms and conditions of a contract. See also: Default. A certain quantity of a material held in stock to meet any unforeseen supply delays or disruptions of scheduled deliveries, increase in prices and/or unexpected up-surge in demand. The system of aggregating total requirements (generally of all users) of a product or service for a single purchase order or a series of orders for large quantities which would not have been possible if demand was met on a fragmented basis. Bulk buying is advantageous for getting favourable terms from tenderers as well as in effecting other economies. See also Aggregation and Economies of Scale. Acounter-trade arrangement whereby a supplier of plant, equipment and/or technology agrees to accept part or full payment for supplies, in terms of the goods to be produced with the help of these facilities. Also referred to as compensation trade.

Breach of contract:

Buffer stock:

Bulk buying:

Buy back:

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