Glossary

DEBARMENT

The disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by a government body, for a specified time commensurate with the seriousness of the offense, the failure, or the inadequacy of performance.

DECARBONISATION

The reduction or removal of carbon dioxide from energy sources.

DECOMMISSION

The activities performed to take a product or service out of use and make it unavailable to customers.

DEFAULT

Failure by a party to a contract to comply with contractual requirements.

DEGROWTH

A downscaling of production and consumption.

DELIVERY

The formal handing over of property; the transfer of possession, such as by carrier to purchaser.

DEMAND

How much or many of a product or service customers are prepared to buy at different prices.

DEMAND CURVE

A graphical representation of how price changes with changes in the demand for an item.

DEMOGRAPHICS

The type, age, culture, interests and financial position of people.

DEMURRAGE

The detention of a ship, railroad, car or truck beyond a specified time for loading/unloading; the payment required and made for the delay.

DEPENDENT DEMAND STOCK

Raw materials or component parts whose demand (ordering levels) is influenced by demand for the finished product.

DEPRECIATION

The reduction over time in the value of an asset held by a company, often due to wear and tear. An amount for this is treated as a cost in a company’s annual accounts.

DEPRECIATION CHARGE

The amount of money by which annual accounts are adjusted to reflect the cost of a reduction in the value of assets. This money is put aside to purchase a replacement for the asset at a future date.

DEPRECIATION OF ASSETS

An accounting method of spreading the cost of an asset over a defined period, usually several financial years.

DESIGN SPECIFICATION

A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured.

DESTINATION

The place to which a shipment is consigned.

DESIGN SPECIFICATION

A detailed document that sets out the precise way that a product must be built, or a service delivered; includes technical drawings, standards that must be met and dimensions.

DEVOLVE

Delegate or transfer power.

DIRECT CALL OFF

The act of placing an order under a framework agreement without having further competition.

DIRECT COST

Cost that is directly associated with the production of a good or service.

DIRECT LABOUR COST

The salary cost for employees who work in the manufacturing process of an item or delivery of a service.

DIRECT MATERIAL COST

The cost of materials and components used in the production of an item or delivery of a service.

DIRECT SUPPLIES

Raw materials and goods for use in production.

DISABILITY-OWNED BUSINESS ENTERPRISE (DOBE)

A disability-owned business enterprise (DOBE) is a for-profit business that is at least 51% owned, managed and controlled by a person with a disability regardless of whether or not that business owner employs person(s) with a disability.

DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

Any veteran that was disabled during active-duty service and received a rating letter qualifies for being classified as a Disabled Veteran Business Enterprise. A similar 51% ownership and control of the business is applied to businesses owned by service-disabled veterans.

DISCLOSURE OF GIFTS

Declaring gifts or hospitality received from a supplier to ensure transparency of dealings.

DISCRETIONARY SPENDING

Spending by consumers on things they want to buy rather than on things they have to buy such as food and housing.

DISECONOMY OF SCALE

Where unit costs rise with rising output.

DISSOLVED

Ceased trading.

DISTRIBUTION

The process of moving materials or products from one supply chain participant to another.

DISTRIBUTION CHANNEL

The network used to get a product or service from the manufacturer or creator to the end user or consumer. It can include wholesalers, agents and retailers.

DIVIDEND

Money paid from the company’s earnings to the shareholder.

DOCUMENT TYPE

MAPS Procurement uses document type to differentiate among different functions for a requisition, solicitation, contract, or order. The document type is a field to be entered on those screens that are for requisition solicitation, contract, or order.

DOMESTIC

Private, not business.

DOWNSTREAM ENVIRONMENTAL FACTORS

Impacts on the environment caused as a result of the use of the goods you are producing.

DOWNTIME

Time when production or services cannot be carried out.

DROP SHIPMENT

Merchandise which is shipped by a manufacturer directly to a customer in response to the seller who collects orders but does not maintain an inventory.

DUAL-SOURCING

Using two or more suppliers for a product, splitting demand between them, to keep pricing competitive and ensure continuity of supply.

DUE DILIGENCE

Undertaking a thorough appraisal or conducting an evaluation to establish all the facts prior to entering into an agreement.