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Procurement is the wider aspects related to the activities associated with the provisioning of equipment, products and services encompassing policy and strategy development and implementation, provisioning strategies and demand management etc.
Purchasing is the procedural aspects related to competitive processes and the methods employed to actually purchase equipment, products and services.
Purchase - its a part of procurement- Its a process of scheduling and follow the items.
Ex - i purchased a pen - which means i gave money and inturn got pen from shop.
While procurement - its starts from selecting the supplier( after proper valuation ), negotiating, fixing in co terms, forecasting, process evaluation.
Procurement will only responsible for Bid evaluation Tender process and cost control, Project management, Monitor the purchasing activities, communication and administration between one department to other department. He/She will responsible for the bid opening and decision maker when teotiatndering. Purchasing Dept will work under the controlling by Procurement Manager. Etc Purchasing department will take care of buying materials, cost control, find good vendor/supplier and negotiate the price, follow the purchasing procedure and regulation, work in team, communication with Accounting/Finance Dept and Procurement to make sure the prices are correct (PC) - Price Comporation. e
Procurement engulfs the entire disciple of the fuction which covering SOURCING and Purchasing .
Sourcing involves the process ( Form identification of need - follow thru RFI,RFQ,RFP ,Evaluation of Purchase post review of quotes , till signature of contract )
Purchasing is the part / division of procurement post Sourcing Actions or Post contract execution which is responsible for PO placment , follows up , reciept of materials , inspection , grn , Invoice and payment actions . Purchasing also involves and contract management .
Purchasing is only a part of procurment and simply deals with the buying of an item whereas on the other hand procurement means to deal with the entire process.
Purchasing is the core part of procurement, concerns with buying processes.
Purchasing is only a part of Procurement. Procurement is whole process which involves increasing the supplier base,Proper Supplier Selection, Making some agreements with suppliers like pre bid agreement,Formulating Payment terms to the maximum benefit of both seller and buyer , Supply chain management etc. Procurement is a highly skilled job requiring experience, expertise & Decision making capabilities where as purchasing is a simple purchase involving regular or day to day items.
Procurement basically deals with the material sourcing activities in terms of Price Negotiation without compromising on quality along with timely delivery of materials.
Purchasing is the process which implies how the materials are finally ordered.
