Many use the terms Procurement and Purchasing interchangeably. However, they are two different things.
TL;DR: Procurement refers to all the STRATEGIC activities that involve sourcing, negotiation, selection and compliance of vendors that provide all the resources needed by an organization. Purchasing, on the other hand, is the TACTICAL process of how goods and services get ordered.
What is Procurement?
Procurement is the strategic process of sourcing and obtaining the products and services needed by an organization to achieve its business goals.
The processes below are all part of a comprehensive Procurement function:
What is Purchasing?
Purchasing is a series of tactical activities involved in the specific sub-process of “procure-to-pay”, which is part of the overarching Procurement function. Listed below the steps in the purchasing process:
If possible, you should focus your attention on the strategic value-adding processes involved in Procurement, and automate all of the tactical tasks involved in Purchasing. ControlHub helps organizations streamline all the tactical processes and tasks involved in your Procure-to-Pay process.
Learn more at controlhub.com