Purchasing vs Procurement | Key Differences Between Purchasing & Procurement

Supply Chain Doctrine
Supply Chain Doctrine
19.2 هزار بار بازدید - پارسال - Purchasing and procurement both terminologies
Purchasing and procurement both terminologies represents the acquisition of goods and services.

Key differences are:
1: Purchasing is simple, but procurement is complex.
2: Goal of purchasing is short term, while goal of procurement of long term.
3: Purchase fulfill operational needs, while procurement fulfills operational, tactical and strategic needs.
4: Purchasing is reactive approach, while procurement is proactive approach.

Key purchasing steps are:
1: Purchase requisition.
2: Supplier quotation and evaluation.
3: Placement of purchase order.
4: Receiving of supplies and checking quality.
5: Payment to the supplier.

Key procurement steps are:
1: Identify the need of the product and services.
2: Market research and shortlist suppliers
3: RFI, RFP, RFQ issuance and supplier selection.
4: Negotiation
5: Contract award
6: Order placement
7: continuously supplier evaluation and monitoring
8: payment after complete supplier evaluation and end to end contract review

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پارسال در تاریخ 1401/11/16 منتشر شده است.
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