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Logistics & Supply Chain vocabulary · Procurement and Purchasing

Procurement

Meaning in logistics & supply chain, with examples

/prəˈkjʊrmənt/nounCore term

In logistics & supply chain, procurement means: The process of finding, choosing and buying the goods and services a company needs, including negotiating with suppliers and managing contracts.

In Turkish: satın alma, tedarik, satın alma yönetimi

How it is used

Also the name of the department. Procurement is broader than purchasing: purchasing means placing orders and paying, while procurement also covers strategy, sourcing and supplier relationships. Common in job titles and in public tenders.

Example sentences

  1. All orders over 10,000 euros have to go through procurement.

  2. Procurement is negotiating a new packaging contract for next year.

Common collocations

  • procurement department
  • procurement process
  • public procurement
  • procurement manager
  • e-procurement
  • supplierA company or person that provides goods, materials or services to another business, usually at an agreed price and on agreed delivery terms.
  • purchase orderAn official document a buyer sends to a supplier to order goods or services, listing the items, quantities, prices and delivery terms.
  • sourcingThe work of finding, evaluating and selecting suppliers for the goods or services a company needs, including deciding where in the world to buy from.
  • tenderA formal process in which a buyer invites suppliers or carriers to submit offers for a contract and then chooses among them on price and other criteria.
  • buyerA person whose job is to buy goods or services for a company, or more generally the party that purchases the goods in a sale.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Procurement and Purchasing

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