Eskom Procurement Book 2015

GLOSSARY

Non-recurring demand: A request made by a user (department) on a one-time basis for a special purpose or use. Non-responsive bid: A tender/offer by a tenderer which does not conform to the essential requirements of the tender. See also Responsive bid. Objects of procurement: A term used for any one of the categories of goods, works or services or any mixture thereof. In case of a mixture the category for classification is that to which the majority of the value belongs. See also Goods, Works and Services.

Offer:

An offer can be the positive answer issued by a tenderer in response to a tender invitation, or an announcement to deliver goods, carry out works and/or services to every, or a specific, buyer without a specific request or invitation to tender. Also refers to an expression of readiness by a tenderer to enter into a contract. See also Bid, Draft contract, Quotation and Tender. A written document to buy, with instructions, issued to a supplier for material and/or services to be made available at specified price and time. Orders can be issued without any reference to a tender/ offer. See Agreement and Contract. A method of inventory control which relies on defining a minimum stock level which, when reached, must trigger off procurement action of re-ordering. See also Inventory control. Producer who procures goods and/or services and incorporates these without any changes (a component part) into a product which he is manufacturing for sale. Astatement which lists in detail the contents of a particular package. It is also called a Packing note. Cost of placing an order.

Order:

Ordering costs:

Order point control:

Original Equipment Manufacturer (OEM):

Packing list:

Patent: A right or an authority granted by a designated government agency to an inventor to have a sole right of making, using or selling his invention for a specified period. Patent infringement: Unauthorised use by a manufacturer of a product or process

invented by someone else and over which the latter has a patent right. The buyer, to protect himself against patent infringement by a supplier, usually has an appropriate clause inserted to this effect in the purchase contract. See also Patent.

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