Supply Chain Management main glossary

This is a glossary of key terms used throughout the site.

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The degree to which a project or an organisation operates according to specific criteria, standards or guidelines, or achieves results in accordance with stated goals or plans.

Entry link: Performance

Performance guarantee

Once a purchase order or contract has been awarded, the successful bidder/supplier may be asked to provide financial guarantee in the form of performance guarantee (as % of the total contract value). The following forms of guarantee may be accepted:

  • Letter of credit.
  • Cash deposit.
  • Certified cheque.
  • Unconditional guarantee/bond issued by a financial institution.

The performance guarantee is used for guaranteeing the performance of contract by the supplier in accordance with the requirements of the contract. It should be deposited within a specified time after notification of award. Release of the sum may be made in whole or in parts, conditional upon progress of contract performance, inspection and acceptance etc. The procedure is prescribed by the entity in the tender documentation, upon considering the characteristics and actual needs of the procurement. Performance guarantee may be forfeited in cases of unsatisfactory performance or violation of contract terms.

Entry link: Performance guarantee

Performance-based financing

Performance-based financing is a system of donor funding by which cash or non-monetary benefits are provided against measurable actions or achievement. Pay-for-performance, results-based financing, performance-based contracting, performance-based agreement, performance-based incentives and performance-based granting are slightly different concepts but basically refer to the same conditional funding mechanism.

Entry link: Performance-based financing


Pharmacopoeia refers to a set of quality specifications for pharmaceutical substances (active ingredients and excipients) and dosage forms. It also includes general methods of analysis.

Entry link: Pharmacopoeia

Pooled procurement

Pooled procurement, as defined by WHO, is when purchasing is done by one procurement office on behalf of a group of facilities, health systems or countries. Members of the group agree to purchase certain medicines exclusively through the group.

Entry link: Pooled procurement

Postmarketing surveillance

Postmarketing surveillance or post market surveillance refers to the operation by which the safety of a medicine or medical product is monitored after it has been released on the market. Post market surveillance is an important part of pharmacovigilance, and widens the control study of the safety of a medicine from a limited number of clinical trial participants to the general population.

Entry link: Postmarketing surveillance

Problem statement

A problem statement is a statement in a monitoring and evaluation plan (M&E) that describes the nature and extent of the problem to be addressed by an intervention. It clearly states the specific problem and includes a quantitative element that describes the magnitude of the problem and its impact on society.

Entry link: Problem statement

Process evaluation

A type of evaluation that focuses on program implementation. Process evaluations usually focus on a single program and use largely qualitative methods to describe program activities and perceptions, especially during the developmental stages and early implementation of the program. These assessments may also include some quantitative approaches, such as surveys about client satisfaction and perceptions about needs and services. In addition, a process evaluation might provide understanding about a program’s cultural, socio-political, legal, and economic contexts that affect the program. Synonyms: formative evaluation, mid-term evaluation.

Entry link: Process evaluation


The multiple activities, both planning and implementation, carried out to achieve the program’s objectives.


Entry link: Processes

Public health expenditure

According to WHO, public health expenditure consists of recurrent and capital spending from government (central and local) budgets, external borrowings and grants (including donations from international agencies and nongovernmental organizations), and social (or compulsory) health insurance funds. Total health expenditure is the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation.

Entry link: Public health expenditure