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Thread: Procurement vs. Purchasing

  1. #1
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    Smile Procurement vs. Purchasing

    Your thoughts on the difference and the work strings involved would be most welcome.

  2. #2
    Forum Manager Starbucks Junkie's Avatar
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    Default Re: Procurement vs. Purchasing

    Quote Originally Posted by WendyFishel View Post
    Your thoughts on the difference and the work strings involved would be most welcome.
    Wendy,

    For my own thoughts for what they are worth, at first thought they are one and the same, but I like to feel that there is a fundamental difference, that being that Purchasing is the art of simply buying froma vendor, the nature of purchasing is that you understand your demand, understand your vendors constraints and place orders appropriately.

    Procurement in my mind is much more in depth, with regards to negotiations, costings, supply management, and sourcing...

    But as said, just my thoughts.

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    Default Re: Procurement vs. Purchasing

    I think that is the generally accepted difference.

    Procurement is more strategic, related to sourcing issues around vendor selection, setting up contracts, negotiating pricing and the like.

    Purchasing is more transactional and really involves the actual 'buying' within the boundaries already set up by procurement. This element is often called 'merchandising' in retail businesses.

    Depending on the size of the organisation, procurement and purchasing might be combined.
    Regards

    Top Link - Site Founder

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    Default Re: Procurement vs. Purchasing

    thx for the info

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    Default Re: Procurement vs. Purchasing

    To me,

    Purchasing is a simple term for those who do not understand procurement.

    Whereas Procurement is used when you are dealing with highly intellectual people. :P

    The bottom line is still the same, except as mentioned there are some differences.

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    Default Re: Procurement vs. Purchasing

    Hi Wendy,

    I've always struggled with knowing the difference! I stumbled upon this article that has helped me a lot, check it out when you have a chance: https://blog.procurify.com/2014/02/0...nd-purchasing/

    -Jess

  7. #7
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    Default Re: Procurement vs. Purchasing

    Procurement is the process of acquiring all the goods and services that are important to an organization. It deals with sourcing activities, negotiation of contracts and actual purchasing of goods.
    Purchasing refers to buying of goods or services. It is a subset of procurement.
    Hope this helps you.

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