E-Purchasing, also known as electronic purchasing, refers to the process of buying goods and services using the internet or other electronic methods. It encompasses a range of activities, from placing orders and invoicing to payment, often involving online platforms to streamline and optimize procurement processes.

Direct Cost refers to expenses directly attributable to the production of goods or services. These costs include materials, labor, and any other expenditure that can be specifically tied to a particular product or service without ambiguity. Direct costs are crucial for calculating the cost of goods sold and for determining the profitability of specific business

Dispute Resolution is a process aimed at resolving a disagreement or conflict between parties through methods such as negotiation, mediation, arbitration, or litigation without resorting to legal proceedings. It focuses on finding a mutually agreeable solution to prevent escalation into formal legal challenges.

Early Payment Discounts (EPD) are a financial incentive offered by a seller to a buyer for paying invoices before their due date. The discount encourages prompt payment and improves cash flow management by reducing the overall cost of goods and services for the buyer. EPDs typically specify a percentage reduction from the total invoice amount

Early Supplier Involvement (ESI) is an approach in procurement and supply chain management where suppliers are integrated into the product development process at an early stage. The primary goal of ESI is to leverage supplier expertise and capabilities to enhance product design, reduce costs, improve quality, and shorten time-to-market. By involving suppliers early, organizations can

eProcurement is the electronic implementation of traditional procurement processes, using internet-based applications and platforms to streamline the purchasing of goods and services, manage supplier relationships, and enhance visibility across procurement activities within an organization. Read more: Your Guide to eProcurement Why Teams Adopt eProcurement Email threads and spreadsheets crack under volume. A single front door,

eInvoicing, or electronic invoicing, refers to the process of generating, sending, receiving, and processing invoices in a digital format. This system eliminates the need for paper invoices by utilizing electronic methods, enabling faster transactions, reducing errors, and improving efficiency in financial operations.

Dynamic Discounting is a flexible early-payment mechanism where buyers offer to pay approved supplier invoices before their due date in exchange for a variable (dynamic) discount on the invoice value. Unlike static terms like “2% 10 net 30” (fixed discount, fixed date), Dynamic Discounting lets the discount slide based on how early the payment is

Direct Procurement refers to the purchasing of raw materials, components, and goods that are directly used in the production of a company’s products. It involves the acquisition of items that are crucial for the company’s core operations and directly affect the production process. This type of procurement is essential for maintaining product quality and ensuring

EAU, or Estimated Annual Usage, refers to the projected quantity of a product or service that an organization expects to consume over a one-year period. It is a foundational planning metric used across sourcing, contracting, and supplier negotiations to align demand forecasts with procurement strategies. Rather than being a static number, EAU represents a forward-looking