Difference between procurement and purchasing
Contents |
[edit] Introduction
While the terms 'procurement' and 'purchasing' are frequently used interchangeably, there are actually differences between them.
[edit] Procurement
Procurement is the strategic process of purchasing goods or services. This process may include a number of activities required in order to acquire the goods or services from a third party vendor, including the preparation of information, invitation to tender, submission of tenders, assessment, negotiation and contracting.
On construction projects, procurement can involve a team of consultants, following a set sequence of procedures based on a predetermined procurement route that will satisfy the long-term objectives of the client.
[edit] Purchasing
Purchasing is a more general term associated with the shorter term activities relating to actually buying something. It can be a subset of procurement, and generally refers to the administrative process of generating documentation such as purchase orders.
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