Original Source: Procurement Sense

“Many people use the terms purchasing and procurement interchangeably, but despite their similarities, they do have different meanings. Let’s clarify any confusion on the difference between procurement and purchasing.  Procurement involves the process of selecting vendors, establishing payment terms, strategic vetting, selection, the negotiation of contracts and actual purchasing of goods. Procurement is concerned with acquiring (procuring) all of the goods, services, and work that is vital to an organization. Procurement is, essentially, the overarching or umbrella term within which purchasing can be found. 

The Importance of Strategy

Because procurement is an umbrella term that includes several core business functions it should be considered a core part of any organization’s corporate strategy. Our friends at entrepreneurial-insights.com have published a great explanation of 4 aspects of corporate strategy. Those aspects are: Company Identity, Market Placement, Company Capabilities, and Management Issues…”

http://blog.procurify.com/2014/02/07/what-is-the-difference-between-procurement-and-purchasing/

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Procurement Operations