Eskom Procurement Book 2015

GLOSSARY

Short list:

A list of names and addresses of potential tenderers drawn up by a buyer to whom invitations to tender may be sent. Usually the elaboration of a short list is the objective of a prequalification procedure. See also Registration of interest and Prequalification. Act of searching for suitable sources of supply: See also Market analysis. A statement of a set of requirements to be satisfied by a product, material or process indicating, whenever appropriate, the procedures by means of which it may be determined whether the requirements given are satisfied. It will generally include physical, chemical and/or metallurgical properties of a product and/or its design characteristics and/or performance standards. It may also include terminology, testing and test methods, packaging, marking and/or labelling requirements. See also Technical specification. Act of purchasing in the spot market (that is at prices ruling on the purchase date) for prompt delivery, in contrast to forward purchase made now for future delivery at futures prices. See also Commodity exchange and Future. The result of a particular standardisation effort approved by a recognised authority. It may take the form of (a) a document containing a set of conditions to be fulfilled, (b) a fundamental unity; or (c) an object for physical comparison. See also Mandatory standard and Standardisation. The process of defining and selecting through an agreement characteristics of products, testing and measuring methods, specification of characteristics of products for defining their quality, regulation of variety, interchangeability, etc.. Many countries have set up national standards organisations setting out, for a large number of products, the essential requirements which a product should measure up to. The International Organisation for Standardisation (ISO) has been laying down standards for acceptance and adoption of these by member countries. In a tender invitation or enquiry a reference to a national standard or an international standard (or that of any other country) is usually sufficient for suppliers to know precisely what the buyer’s requirements are. Standardisation is also used in the sense of variety control, i.e., reducing the number of types of products within a definite range to that number which is adequate to meet prevailing needs at a given time. See also Standard and Variety control.

Sourcing:

Specification:

Spot purchase:

Standard:

Standardisation:

Standing order:

See Blanket order.

232 CHAPTER 8