Disaggregation

Alan Holland

This is the opposite to aggregation. It occurs when the good or service being procured is broken down into small lots (rather than being aggregated into one large one).

Discount

Alan Holland

Offer to reduce quoted prices if certain criteria are met.

Diseconomies of Scale

Alan Holland

The opposite of economies of scale i.e. costs rise as volume increases.

Diseconomies of Scope

Alan Holland

If a supplier secures contracts for items or services that offer no mutual cost efficiences and in fact increase costs for the provision of both on average then it is an unattractive combination of contracts to win. For example, a 1-truck carrier winning a contract for a full truckload of goods from A to B on a Monday morning and … Read More

Duopoly

Alan Holland

A form of oligopoly where a single market consists of two (dominant) participants.

Early Adopters

Alan Holland

Early adopters are people who embrace new concepts and technologies and are willing to test them. It is important for breakthrough technologies to identify early adopters as they tend to be the risk takers who will be most willing to try something new.

Economies of Scale

Alan Holland

As volumes grow fixed costs get spread over a greater number (of say units) and hence the unit costs tends to fall.

Economies of Scope

Alan Holland

Reduction in the average cost when producing 2 or more (different) products.

Efficiency

Alan Holland

Processes are efficient when a minimum amount of effort is used, and a minimum amount of waste is produced.

Electronic Auction (e-auction)

Alan Holland

An electronic auction is an online marketplace where suppliers and bidders can engage. There are different types, of which a reverse auction is the most common in procurement. In this format the suppliers bid against each other and the winner is the one with the lowest bit. It can sometimes lead to winner’s curse.