Difference between Procurement & Purchasing

difference between Procurement & Purchasing

Well both words are often used interchangeably with some similarities n difference b/w them.

👉#Procurement is the management of all processes involved in obtaining the goods and services necessary for manufacturing products and providing services to customers.
👉 Procurement focuses on sourcing activities, negotiation with suppliers, and the strategic selection of goods and services that enable an organization to achieve maximum value from a select group of key supplier partners.

👉#Purchasing is a function within the procurement process that is largely transactional and associated
with how goods and services are ordered.
👉Purchasing involves receiving and processing purchase requisitions (requirements) and converting them to purchase orders (POs) (awards to suppliers).