What is Procurement?

So what is Procurement? 

Isn't Procurement and Purchasing the same? 

Procurement & Purchasing has been used interchangeably by most companies. For some, there is no difference between them but for others, there is significant difference. To my understanding (different people have different perception), they are under the same family yet there are differences between both of them.

"Purchasing" refer to the purchase of goods and services, fulfilling organization's request. While "Procurement" does the same as what purchasing does but they do something more – overall process i.e. Planned Purchase, Specification Development, Supplier Sourcing & Evaluation, Price Negotiation etc.

I guess we can say in layman term is that Purchasing means what the company need, you just purchase while Procurement means company know what they want to buy in 2-3 month, you plan, source for quality supplier and negotiate that is to company's interest.

Over the years, thing has evolved tremendously. It is no longer just about procuring at a good price or quality materials etc. Anyone can just do the job, sourcing for cheapest source hence Procurement Professional need to do more, adding more value services i.e. creating a strong Supplier database, Building relationship internal and external stakeholders, looking at a bigger picture etc.

It is not an easy job especially managing internal and external stakeholders. I have been through this phase, NOT an easy job but once you get a hand of it, and you can do it too.

SO are you game to be a PROCUREMENT PROFESSIONAL?