Purchasing Vs Procurement

Purchasing Vs Procurement 

Procurement is concerned with acquiring all of the goods, services and work that is vital to an organization.Procurement is, essentially, the overarching or umbrella term within which purchasing can be found.

Procurement process

-Identification of Requirement
-Authorization of Purchase Request
-Approval of Purchase Request
-Procurement
-Identification of Suppliers
-Inquiries Receipt of the Quotation
-Negotiation

Purchasing is a subset of a Procurement function.Purchasing is the procedural aspects related to competitive processes and the methods employed to actually purchase equipment, products and services. Purchasing generally refers simply to buying goods or
services.Purchasing often includes receiving and payment as well.

Purchasing process

-Purchase Order Acknowledgement
-Advance Shipment Notice
-Goods Receipt
-Invoice Recording
-3 Way Match
-Payment to Supplier

Purchasing can usually be described as the transnational function of procurement for goods or services.