DIFFERENCES BETWEEN PROCUREMENT AND PURCHASING
Companies have developed various methodologies so as to provide themselves optimum material and service from the past to present. These methodologies are closed software systems, e-procurement, e-purchasing, e-commerce, etc. The point to understand before examining these systems is the difference between procurement and purchasing. Although the two processes seem basically similar or interrelated, there are some distinctive differences.
What is procurement?
Procurement includes end-to-end supply chain management in the process of collecting bulk materials, services or work. Supply chain management should have been completed with sourcing strategies, contract management, acquisition of materials, services or a work in the way of contract articles.
While the purchasing process only covers issues such as price, delivery and eligibility, procurement is a long-term business strategy that works in a comprehensive way to deal with the conditions affecting purchasing. A comprehensive procurement process includes:
What is purchasing?
Purchasing is a simple buying process where businesses pay for materials or services. This process is generally preferred in small and medium sized enterprises. This process continues as releasing the order, contact with the supplier, payment, supply of material or service, and billing stages. A comprehensive purchasing process:
Scopes distinguish between the procurement process and the purchasing process. The procurement process is a long-term, the purchasing process is a short-term. While the procurement process examines the durability and quality of the products in detail, the purchasing process is mostly price oriented. In the procurement process, focus is on issues such as supplier capacity, risk analysis, spending control, and business ethics. In the purchasing process, the focus is on issues such as price, quantity, time and lead time. Purchasing is one of the parts of the procurement process.
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