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What's the difference between procurement & purchasing?

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Question ajoutée par Haitham Hamadneh , Project Manager , Manarat Al Hayat for Medical (www.skin.shop)
Date de publication: 2013/05/08
Ahmad Ataya
par Ahmad Ataya , Purchasing Manager and Materials Control , Drake and Scull International

Purchase is part of the Procurment t process materials.Purchase is  to the purchasefollow-up article , supplied and tested and stored.But the Procurment will be  :

Materila Submittal

Quatation comparison Statment

Supply Agreement

Subcontract agreement

Budjet justification

Material Cost Control  to Cmplete and .....................others

 

 

 

Ahmed El Masry
par Ahmed El Masry , Procurement Consultant , Guidepoint Global, LLC

Purchasing is part of the procurement process where you purchase goods and services from an external source, However, managing vendors includes tender negotiation means discussions with a bidder, speed of delivery, quality evaluation and rating suppliers, transportation, and storage.
Regards, Ahmed

OSAMA ALTHANI
par OSAMA ALTHANI , Pocurement Automation Mmanager , Future Platform

The terms “Purchasing” and “Procurement” are often used incorrectly interchangeably.

 

Procurement is the function that describes the activities and processes to acquire goods and services. Importantly, and distinct from “purchasing”, procurement involves the activities of establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods. 

 

Purchasing refers to the process of ordering and receiving goods and services. It is a subset of the wider procurement process. Generally, purchasing refers to the process involved in ordering goods such as request, approval, creation of a purchase order record and the receipting of goods. It can be best summarized with the term P2P cycle which stands for Purchase to Pay. 

Mohammed Salim Allana
par Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with all above, inshort purchasing is an old term (which is not restricted to purchasing only but involve the detail process). While Procurement is the new term, used for the same dept who dealt in inviting quotations/bids from various vendors/suppliers, short list them, ensure about insurance and post sell service then place the order via LPO and ensure that all the terms of purchasing are satisfied prior making the final payment.

 

Just an example of old times Accounts dept and now it is Financial Control.  

Ani Kuriakose
par Ani Kuriakose , Managing Partner – SCM , A. A. Associates

Procurement is the process of acquiring goods or services at the best possible cost from an external source, to meet the needs of the purchaser/organization/customer.
It is the origin of the supply chain process and involves other activities such as supplier evaluation and selection, negotiation, expediting, costing, payment, logistics in addition to purchasing.
Although many organizations do use the terms interchangeably, 'purchasing' specifically refers to the subset activity of negotiating and making the purchase e.g.
raising a purchase order/contract, from the supplier. 

Mohamed Elkhatim Hamada
par Mohamed Elkhatim Hamada , Supply Chain Manager , Central Advance Digitech

Purchasing is a tactical activity , while procurement is the strategical activity.
Purchasing is the process of buying.
Procurement involve the selection of vendors , contracting , price , negation and may include a broader aspect of supply chain.

Syed Samsudeen . A
par Syed Samsudeen . A , Executive , Lear corporation

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. etc.

Atul-Kumar SRIVASTAVA
par Atul-Kumar SRIVASTAVA , Specialist Contracts (EPC) , Confidential

> Procurement encompass - Purchasing, Expediting, Inspection, Logistics, Accounting and Payment and Satisfactory closure of the Supply / Contract /Services Orders .
> Purchasing....Purchasing Only.
POst Order Activity not inviolved. 
 

Elke Woofter
par Elke Woofter , Project Assistant , American Technical Associates

"Procurement deals with the sourcing activities, negotiation and strategic selection of goods and services that are usually of importance to an organization. Purchasing is the process of how goods and services are ordered"

Abid Khan
par Abid Khan , IT Procurement Consultant , Arcblue Consulting Ltd

Purchasing is a simple activity of buying a product or service for the company, however Procurement is more strategic in nature which means going through the whole process of getting few quotations, comparison and approvals, placing the orders and making sure the material is recieved on time and correct quantity etc.

Syed Jamil Ahmed
par Syed Jamil Ahmed , Sr. Procurement Officer , Bahmani Group

The Title Purchasing & Procurement comes under same hierarchy, only thing is that Purchasing acts immediate action upon requirement.

Whereas Procurement needs to follow the procedure like contacting min 3 Vendors, getting offers, Price Negotiation, Quality Check, Best Delivery Period, Best Payment Terms in terms of Credit.

 

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