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
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#procurement #purchase #purchasevsprocurement

[@zarminaghanizada9185]

Excellent and awesome explanation. Thank you.

[@syedsalman19]

Well done mr. Fahad , u have explained it very well. But i want to add one word regarding procurement is..that procurement is a tactical task. And after the completion of procurement process, our procurement department still work on reserve procure. If the things are well..but after some time it will become faulty so procure. Need to contact vendor for replacement of item. And work on warranty as well.

[@SupplyChainDoctrine]

Thank you Mr. Salman for your valuable input.

[@abidullah7523]

Excellent communication 😊👍

[@2488241]

Thanks for sharing the knowledge sir
We are learning from your videos 👍🌹

[@SupplyChainDoctrine]

Best of luck for your learnings 👍

[@zareeshasheikh1836]

Thank you Sir 👍👍

[@alokdas231]

vary informative

[@gratitude1212]

Thank you for sharing. Great content!

[@Farmingwithasad]

Sir you are doing great job

[@SupplyChainDoctrine]

Thank you Mr. Asad.

[@GhulamMustafa-rp9jt]

Well done

[@prakashmallick1931]

Well explained

[@bilalahadbilalahad6128]

Thanks

[@israaiqbalkazi2493]

Thank you for such information 🎉

[@shahidaziz4598]

very well information at basic level

[@nidaassociates7441]

Yes

[@vishaltawde8986]

Thanks so much for making this video, I got 12 years Procurement experience (Both Direct & Indirect) Please suggest me Certification or course which focus on Global procurement, Negotiations, Risk evaluation and forecasting. Thanks

[@SupplyChainDoctrine]

Hello,
Please have a look at APICS related certifications.
They are offering international certifications in many key areas of SCM.

[@vishaltyagi1585]

Thanku so much sir

[@prashantjagdale6885]

Sir I want to ask list of colleges where can do diploma or degree in materials management

[@pritidhobale4916]

Please share negotiation skil for IT assets, software, BMS material

[@inceptor_arts]

Thank you

[@usamashah483]

What difference between supply chain or procurement

[@bkt1818]

Logistics field more impressive skill or qualification certificate

[@kedartambe5573]

what is purchasing management ?

[@stylewithvani943]

We need more information on scm

[@SupplyChainDoctrine]

Hi, have a look at playlist section.
You will find dozen of videos related to Supply chain

[@ganeshbande1110]

Thank you sir 👍🏻