Commodity

A standardised product or category of goods that can be clearly specified, sourced from multiple suppliers, and readily substituted with equivalent alternatives. Because commodities have little differentiation between suppliers, purchasing decisions are often driven primarily by price, availability, quality, and delivery terms rather than unique features. Common examples include raw materials, office supplies, fuel, and other standard commercial goods. In procurement, commodities are typically purchased through competitive sourcing methods, framework agreements, catalogues, or bulk purchasing arrangements to achieve cost savings, supply continuity, and value for money.