What's the Difference Between Procurement and Purchasing?

[Suba]

In the business world, we often encounter the terms procurement and purchasing. They are so similar that many businesspeople assume they have the same meaning and can be used interchangeably. However, others argue that procurement and purchasing differ in both purpose and process. So, procurement isn't just about purchasing merchandise/raw materials; it also involves selecting and evaluating vendors and ensuring purchased goods meet required specifications.

Please leave a comment to clarify the differences between procurement and purchasing.

 

[Starmix]

Before you purchase products you procure first to have a detailed pricing and qualities. The personnel assigned on this knows best of what to do.

 

[Fidelia]

Procurement involves the process of identifying, and selecting a product. Purchase is simply to pay for a product.

 

[Augusta]

purchasing only focuses on order costs and how to lower them, whereas procurement focuses on the overall value creation and total costs throughout the purchasing cycle

 

[kit_hung]

purchasing only focuses on order costs and how to lower them, whereas procurement focuses on the overall value creation and total costs throughout the purchasing cycle

Purchasing is like a quick job. you want something you pay for and you are looking for a way to reduce the cost of just ordering. procurement is a broader plan that involves looking at the entire value of the entire purchasing cycle from sourcing to maintaining relationships with suppliers and ensuring all costs are consistent

It is like the story of Odysseus when he had a long journey at sea purchasing is like traveling just a short distance and getting a quick meal procurement is a whole journey with many waves and challenges but in the end it brings great benefits and long-term security to your business fleet

 

[Augusta]

Purchasing is like a quick job. you want something you pay for and you are looking for a way to reduce the cost of just ordering. procurement is a broader plan that involves looking at the entire value of the entire purchasing cycle from sourcing to maintaining relationships with suppliers and ensuring all costs are consistent

It is like the story of Odysseus when he had a long journey at sea purchasing is like traveling just a short distance and getting a quick meal procurement is a whole journey with many waves and challenges but in the end it brings great benefits and long-term security to your business fleet

Yes procurement simply means the longest routine of purchasing as you do more while purchasing I'd just pick.snd pay