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In some organizations the purchasing dept is a sub section of procurement. Procurement specializing in establishing requirements , sourcing activities , sampling process , market research , vendor evaluation, negotiations and Purchasing specializes in the purchasing process - ordering the goods - raising the purchase order and receipting the goods.
Both procurement and purchase are close terms but in recent times procurement terminolgy been used for the simple reason that few more activities are been included into procurement such as sourcing, rating etc of the supplier or the vendor, in purchase starting from enquiry to arrangment of payment is been done, here more of chasing activities are done to get the required materials.In procurement apart from chasing certain planning activity is also been done.-
both are very closely related words and can be best defined as follows:
the term ’Procurement’ is to cover all activities that involve buying, contracting, purchasing, sourcing or tendering.
the term '\\purchasing' is to process the entire acquisition from requisition, to purchase order, to product receipt, to payment.
Functionally, there is no difference. The principles & processes are the same.
The term 'purchasing' is used in a 'manufacturing / private sector' set-up.
Whereas, the term 'Procurement' is used by government agencies
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