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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.
purchading is a single step of the procurement process , procurement is more stratigic than purchasing .
Though procurement and purchasing used interchangeably, there is significant difference between two. While former is broader process which include chain of activities for the acquisition of goods and services, later is ordering and receiving of goods and a component of procurement process.
Purchasing is simple to process the order and recieves the goods or services whatever you ordered. It is a part of procurement operations.
Similarly, --------------- A customer has placed an order ( Sales Order ) -----> Request ----> Approval ---> Raising of Purchase Order (P.O) ---> Recipting of goods or services.
While procurement is a group of activities like sourcing, vendor selection/evaluation , RFQ management, contract negotiation,supply process and purchasing functions.
Procurement is the overarching end to end process of acquiring goods, services and IP. Purchasing is a subprocess of the procurement that deals with the action of buying. Procurement strategy is part of the procurement process but not of the purchasing process, while PO placement is part of the purchasing process and the procurement process.
Purchasing will find the sources of suppliers as raw material , semi/finished goods required by us. It main function is to source & develop the component for our requirement
Procurement will follow with sourced suppliers for supplies of materials
