Purchasing vs Procurement | Key Differences Between Purchasing & Procurement

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 What Are RFI, RFP, RFQ, LOI | Basic Procurement Documents | Urdu-Hindi-SCM https://www.youtube.com/watch?v=3yzpF2poYRI&t=65s Complete Procurement Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYYuvbHYekyOS15wa7UGMbce Complete Lean Supply Chain Playlist https://www.youtube.com/playlist?list=PLizIURuPyHYaU4QfOu9B60bjcdnU1esI9 Complete Logistics Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYbLCNt6yDVq6nLaqKKHErzl Complete Supply Chain Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYbCiXOR4KHCseO8o6rhfDCB Complete Inventory Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYa_AZOyniIg_goy1EgSpUDX Complete General Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYakaK-13_G3fbVLnL9SU5fX Complete Production Management Playlist https://youtube.com/playlist?list=PLizIURuPyHYYrW7TeW0544bHFYa2ANTiT #procurement #purchase #purchasevsprocurement