Definition of Procurement – Procurement vs Purchasing

Procurement - what is the difference between procurement and purchasing

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PROCUREMENT DEFINITION

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Procurement meaning – The difference between “Procurement’ and “Purchasing”

[/vc_column_text][vc_separator type=”transparent”][vc_separator type=”transparent”][vc_separator type=”transparent”][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column width=”2/3″][vc_separator type=”transparent”][vc_column_text]What is the definition of procurement? Is it the same as purchasing? The terms are often used, incorrectly, interchangeably. So what is the difference? What does procurement entail and what exactly does purchasing mean? There are numerous, sometimes conflicting definitions and even professionals in the field will often debate the different nuances and meanings of these words as well as other synonyms  like ‘sourcing’ and ‘acquisition’. For a good broad definition Wikipedia is good source[/vc_column_text][vc_separator type=”transparent”]

“Procurement” is the overarching function that describes the activities and processes to acquire goods and services
[vc_separator type=”transparent”][vc_column_text]As a broad definition, “Procurement” is the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from “purchasing”, it involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods[/vc_column_text][vc_separator type=”transparent”][vc_column_text]For further details see The Procurement Process.[/vc_column_text][vc_separator type=”transparent”]
Purchasing is a subset of the wider procurement process
[vc_separator type=”transparent”][vc_column_text]The term “Purchasing” refers to the process of ordering and receiving goods and services. It is a subset of the wider procurement process. Generally, purchasing refers to the process involved in ordering goods such as request, approval, creation of a purchase order record (a Purchase Order or P.O.) and the receipting of goods.[/vc_column_text][vc_separator type=”transparent”][vc_separator type=”transparent”][vc_separator type=”transparent”][/vc_column][vc_column width=”1/3″][vc_separator type=”transparent”][vc_separator type=”transparent”][vc_separator type=”transparent”][vc_separator type=”transparent”][vc_single_image image=”17420″ img_size=”full” qode_css_animation=””][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_separator type=”small” position=”center”][vc_column_text]

FURTHER READING

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Download the Infographic

Download the Infographic

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