Purchasing management now requires more attention to strategic planning and extends beyond simply buying goods and services.
Procurement involves various advanced responsibilities such as developing demand and forecast-based procurement strategies, inventory control, inbound transportation, supplier-base development, receiving and incoming inspection, strategic sourcing, Internet sourcing, market analysis, and product design collaboration.
This has led to the adoption of the term procurement by many organizations and professionals to refer to activities beyond purchasing. However, some companies use the terms procurement and purchasing interchangeably without distinguishing between them.
Procurement – The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.
Let’s start by discussing the tactical aspects of procurement, which involve purchasing, tactical buying, and sourcing. Even companies that focus on a more strategic approach to procurement will still need to handle some tactical activities. This is because procurement, by definition, includes the process of purchasing.