Scribd
Upload
5 views1 page

Differences Between Purchasing and Procurement

The document discusses the differences between purchasing and procurement. Purchasing involves the initial buying of goods and services directly from suppliers and focuses on price. Procurement involves the entire process of obtaining goods and services, from identifying needs to negotiating terms, and focuses more on value.

Uploaded by

Salik
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
5 views1 page

Differences Between Purchasing and Procurement

The document discusses the differences between purchasing and procurement. Purchasing involves the initial buying of goods and services directly from suppliers and focuses on price. Procurement involves the entire process of obtaining goods and services, from identifying needs to negotiating terms, and focuses more on value.

Uploaded by

Salik
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Name Raja Muhammad Yousaf

Course Supply chain management in Railways

Name Raja Muhammad Yousaf


Course Supply Chain Management in Railways

Question :
Describe five main differences between purchasing and Procurement with example?
Answer :
Following are the five main differences between purchasing and procurement with example

Purchasing Procurement
Purchasing is the initial stage of materials Procurement is the process of identifying
management which involves buying the goods the requirement and agreeing to the terms so
and services from the suppliers as to obtain goods and services through a
competitive bidding method
It is small subset of [Link] includes It involves every activity in obtaining the
ordering, expediting, receiving and fulfilling goods and services including sourcing,
payment. negotiating terms and inspecting.
It involves direct process of purchasing the It involves steps that take place before ,
goods during and after the purchase.
It emphasizes more on price than value of It emphasizes more on value than price.
goods and services.
It is concerned with buying goods and services. It is concerned with acquiring goods and
services.
It focuses on the transactional phase associated It is the strategic process of sourcing a
with buying products and services product or service.
Example :For purchasing stationery or electric Example:Pakistan Railways require
bulbs a requisition is received from officer and [Link] of all the need of
authority can order directly to buy these items locomotive is identified and then suppliers
from market having low cost. would be searched based on the
specifications.

You might also like