Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 1-2 of 2 results for “Cost Reduction”

  • Cost Reduction

    Generally realized when a manufacturer is able to lower the material or labor costs used to make its products; interchangeably used to indicate a lower price paid by the buyer from what was previously paid.

    See Also: Cost Savings, Price Reduction

  • Transaction Cost Reduction

    Activities or process changes that decrease the cost to process a purchase order or a payment transaction. Procurement credit cards are an example of a transaction cost reduction.