PURCHASING IS JUST A PART OF PROCUREMENT AS PROCUREMENT MEANS BUYING,PURCHASING,RENTING,LEASING,OR ACQUIRING GOODS,WORKS & SERVICES.

SO,PURCHASING DOES NOT COVER ISSUES OF RENTING AND LEASING / DISPOSAL RATHER THAN ACQUIRING GOODS BT PROCUREMENT COVER THEM.

Procurement Definition To define procurement broadly, Procurement is the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from purchasing, procurement involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods

Procurement is the process of purchasing /acquisition of materials or services of specific quality & quantity at right time and place at most competitive price from right source. These are achieved through market research, identification of right vendors, negotiation for price and terms (payment, delivery terms), without compromising the quality. Once the contract for procurement is entered into, the materials / services can be purchased from time to time as per contractual agreement. Different companies have different procedures for procurement of materials/ services. But in case of emergency purchase, no such contract is required . The same can be purchased over the counter. This is mostly applicable in case of Branded /Proprietary Items. Hence , no procurement procedure is required. Hence Purchase is part of the process of Procurement. Procurement - Organizational function that includes specifications development, value analysis, supplier market research, negotiation, buying activities, contract administration, inventory control, traffic, receiving and stores. Purchasing - A major function of an organization that is responsible for acquisition of required materials, services and equipment.

Andrew B. Many people have said above that Purchasing is a part of the Procurement process, that Purchasing is "transactional" and Procurement is "strategic" and so on and I would concur with those views. Almost everyone in their daily lives at work and at home is a transactional purchaser, but not everyone is skilled in the art of Procurement - and Procurement is a definite skill - just like Lean Manufacturing, Finance, Sales, etc. To my mind, the vast majority of businesses do not engage/involve Procurement effectively within the organisation and do not give it the prominence that it deserves at Board Room level, thus missing a fundamental opportunity to improve business performance.

Jacob P. Differences between Purchasing and Procurement. Purchasing - The Company needs a mobile phone ,please purchase one. Procurement - The Company needs a mobile phone Buy/ Purchase from a reputed dealer Technical functions required for the phone. Specific coulour? Availability Etc Andrew B. Jacob, I couldn't disagree more on the Procurement aspect of the mobile phone you noted above. From a procurement perspective, I think a full exercise would include the following: How many handsets do I have? What has the call traffic been over the past "n" months? What is traffic is within network, to Landlines, to Premium numbers, to foreign countries, etc. Who are my primary users? What are the data requirements? What are my internal systems which might impact on technology? What kind of contract structure do I need? Co-terminous or separate arrangement per handset? Research the providers in the market place. Do I go direct to one of the networks or do I go to a Tier 1 or Tier 2 reseller? Provide the suppliers with a profile of your call traffic and talk to them about your plans for the future. Will numbers grow, will roaming increase, will Data increase, etc How do you want your account managed? How often do you want kit refreshes and so on. Then solicit bids from the suppliers which match your requirements. Once you have the bids they need to be analysed on a like for like basis and the whole life cost of each bid needs to be considered - fixed costs, variable costs, termination costs, "technology funds"/rebates and so on. Then you can make a fully informed decision about how to proceed.
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Robert L. Most of what was already said is true. I will add that Procurement will also look at alternatives to buying such as leasing or exploring the mke or buy decision. Also in general Procurement tends to refer to total acquisition costs, looking at logistics and other costs. This is not to say that Total acquisition Cost should not be a focus in purchasing RL

Prafulla R. Procurement & purchase are two different activity, but used as substitute for each other mistakenly. Procurement is a process which involves sub processes like market research (sourcing activities), vendor evaluation, price negotiation, contracts, creating purchase orders, receiving goods/services. Purchase is a part of Procurement which involves process of ordering and receiving goods/services. Purchasing = Tactical acquisition

Allison S. Here is a basic example describing the difference. If you need a pencil, you go to your purchasing department and they get you a pencil. The Procurement team did the market research to find the best pencil to meet your needs, sourced it from the best supplier, negotiated the contract terms and pricing, set up the distribution and payment systems, and monitors supplier performance and contract compliance.

Mick L. Along the lines of many aforementioned comments, Procurement is the STRATEGIC umbrella for a TACTICAL/TRANSACTIONAL driven Purchasing function. Example (1) While the Purchasing Dept. (buyer) may execute frequent PO's and manage Blanket Purchase Order Contracts, the Commodity Manager in the Procurement Group has already rationalized the direct material requirements, qualified the supplier, and in the case of molded plastics possibly negotiated a global resin contract with a resin company from which the various injection molders will be consigned. Example (2) When "purchasing" is tasked with reducing the number of suppliers it is usually the procurement team that researches how the direct material spend is distributed within the Approved Supplier List. This may include ABC analysis as well as Pareto Analytics, etc. Supplier rationalization can yield very significant savings but a line stoppage will easily undermine the effort if key supplier management attributes are left out of consideration.

Vedamurthy A. In principle both are same: fulfill the users requirement and they differ in terms of operation/execution; (Conceptual definition and operational definition); Basic tenets for both are same like right goods / services in right time and at right place to fulfill the end user needs. Procurement and Purchase differ in terms of type and complexity of the requirement, cost of acquisition, and time. Procurement is more broader and inclusive in Identification of needs, define specifications, carry out market survey, adopt a process to determine competitive price (price discovery), entering into contract with mutually acceptable terms and conditions (with / without negotiation), conclusion of the contract and post contract support to effective utilization of the acquired goods/service during life cycle. Procurement fits for all types of requirement acquisition and disposal, whereas acquisition through purchase limits to very few off the shelf, specifications are packaged & precisely defined into readily available products, easy to compare and arrive at decision of acquisition with ease of time. Procurement fits for all types - Private / private sector and even individuals with explicit requirement of transparency and accountability. However purchase is limited to individuals with implicit accountability and transparency based on the individual values and practices.

S.K I. Agree with Mr Alastair Jewson...Purchasing in simple terms is one time activity or process. Whereas procurement is a process involving several more complex activities in the chain requiring professionals, historical data, human element or psychological element of successful negotiating techniques, cost consciousness, short term and long term delivery requirements keeping requirements of just in time availability for production requirements-- getting converted into more complex contract

documentation with legal knowledge or each party in the process wanting value for money or to safeguard own interests, I have possibly tried to make the procurement as complex as possible a layman may not agree !!

Jasmine Z. Procurement- This term has a broad and a narrow definition. The broad definition typically include such duties as specification development, value analysis, supplier market research, negotiation, buying activities, contract administration, and perhaps inventory control, traffic, receiving, and stores. The narrow definition, often used in government related activities, includes only contract processes performed in the pre-award phase, and not the contract administration processes which follow. Purchasing- One of the major business functions of any organization. The function typically is responsible for acquisition of required materials, services, and equipment used in the organization.

Paw Oo W. With Procurement Committees, the Procurement needs: - Budget approval from the Finance (As Working Advance) - Purchase requisition(PR) - Quotations/ Request for quotations (RFQ) - Opening Meeting Minutes (for the committees) - Comparative Bid Analysis (CBA) - Final Meeting Meeting Minutes (for the committees) - the Approval letter (if required) - Purchase Order (if required/ with the procured items specifications, payment term) - the Contract (if required) - the Sample items (if required, the inspection of items with the inspection committees) - Good Received Notes (GRN with the final inspection) - the Invoices of Items (With the authorization signatures) The purchasing needs: - Budget approval from the Finance (As Working Advance) - Purchase requisition(PR) - Quotations/ Request for quotations (RFQ) - Comparative Bid Analysis (CBA) - and then purchase got the approval from the authorization.

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