Procurement is a broad term that includes the process of developing purchasing requirements, researching and selecting suppliers, requesting proposals and bids, negotiating contracts, managing supplier performance and the actual purchasing of goods and services.Purchasing is often an administrative process concerned with financial controls and the operational details of ordering, tracking orders and payments.
Procurement vs PurchasingProcurement is a broad practice with implications for competitive advantage, sustainability, product development, operations, risk management and compliance. It may include processes such as vetting suppliers, requesting proposals, negotiating contracts, competitive bidding, managing contracts, supplier performance evaluation and purchasing.Purchasing is a component of a procurement process that involves managing purchase orders, tracking shipments, invoices, payments and related financial controls.
|Definition||The practice of planning, directing and controlling sourcing and purchasing strategy.||The process of purchasing goods and services including financial and operational control of purchase orders and payments.|
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