Business Dictionary
Procurement
Definition
The action of obtaining or procuring something.
Deep Dive
Procurement is the comprehensive process by which businesses or organizations acquire goods, services, or works from external sources. It extends beyond simple purchasing, encompassing the entire cycle from identifying a need, sourcing potential suppliers, negotiating contracts, placing orders, and receiving goods, to managing supplier relationships and evaluating performance. Strategic procurement aims to secure the best value, not just the lowest price, considering factors like quality, delivery timelines, reliability, and risk.
Examples & Use Cases
- 1A tech company purchasing new servers and networking equipment for a data center
- 2A restaurant sourcing fresh produce and ingredients from local farms
- 3A government agency issuing tenders for the construction of a new public building
Related Terms
SourcingSupply Chain ManagementVendor Management