The practice of rationing customer orders at times of supply shortage. For example, all customers may have only part, say 50%, of their original orders delivered so that only, for example, 50% of the original order volume is delivered. To be placed ‘on allocation’ may cause buyers concern about continuity of supply and many buyers seek to position themselves as ‘preferred customers’ so that in times of shortage they get preferential access to scarce resources. See also Customer, Preferred.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
