Procurement and Purchasing

Procurement and purchasing are essential processes in organizations that involve acquiring goods and services necessary for production. Procurement is the broader strategy of sourcing and managing suppliers, negotiating contracts, and ensuring that the organization obtains quality products at the best price. Purchasing, on the other hand, is the actual transaction of buying these goods and services. Together, they ensure that a company has the right resources to operate efficiently, meet production demands, and maintain inventory, ultimately supporting overall business objectives and productivity.