What is difference between Procurement and Purchasing?

Question

Accepted Answer

Procurement is a strategic process of acquiring goods or services, while purchasing is a transactional process of buying goods or services.

Procurement involves the entire process of acquiring goods or services, from identifying the need to contract management and supplier evaluation.
Purchasing is a subset of procurement, which involves the actual buying of goods or services.
Procurement is a strategic function that focuses on long-term goals and cost savings, while purchasing is a tactical function that focuses on short-term needs and cost efficiency.
Procurement involves supplier relationship management, while purchasing involves placing orders and negotiating prices.
Example: Procurement involves identifying the need for office supplies, evaluating potential suppliers, negotiating contracts, and managing supplier relationships. Purchasing involves placing orders for specific office supplies from the chosen supplier.

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