Effortless Contractor Invoicing Software for Procurement

Contractor invoicing software for Procurement

hi welcome to education leaves in this video i am going to discuss the difference between procurement and purchasing let's start the video procurement and purchasing are the two terms that are often used interchangeably if you ask a layman about the difference you may get a reply that purchasing and procurement are one and the same but if you ask the same question to a manager you'll get a significantly longer answer as to how and why there's a world of differences between purchasing and procurement let's discuss what is procurement procurement refers to the process of identifying shortlisting selecting and acquiring suitable goods or services from a third-party vendor through direct purchase competitive bidding or tendering process while ensuring timely delivery of the right quality and quantity what is purchasing purchasing is the set of functions associated with acquiring the goods and services that an organization requires purchasing is a small subset of the broader procurement function this process includes activities like ordering expediting receiving and fulfilling payment lets explains the differences between procurement and purchasing the end goal of procurement is to identify the company's needs and fulfill the procurement of those needs it is a strategic and proactive process on the other hand the end goal of purchasing is to arrange company expenditure and buy goods and services for the company it is a reactive process in procurement places more importance on an item's value than how much it costs but in purchasing more focused on price than value procurement involved in the end-to-end activities that needed to acquire all necessary goods and services procurement does everything from need recognition to sourcing contract closure and record keeping purchasing gets involved when it's time to buy goods and services tasks involved in purchasing our ordering expediting and payment procurement focused on developing long-term and a win-win relationship with suppliers on the other hand purchasing focused on making efficient transactions not overly concerned with developing vendor relations if you want to read in details or download the pdf go through the link in the description like share the video and don't forget to subscribe to my channel