33:799:301 Lecture Notes - Lecture 5: Supplier Relationship Management, Strategic Sourcing, E-Procurement

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: A Taitt

Document Summary

Procurement: the process of selecting and vetting suppliers, negotiating contracts, establishing payment terms, and the actual purchasing of goods and services. Procurement is concerned with acquiring all of the goods, services and work that is vital to an organization. It is the overarching or umbrella term within which the action of purchasing can be found. Purchasing: the action of obtaining merchandise, capital equipment, raw materials, services, or maintenance, repair, and operating (mro) supplies in exchange for money or its equivalent. Process of how goods and services are ordered from an external third party. Purchasing can usually be described as the transactional function of procurement or services. Can also be used to represent the function of, and the responsibility for acquiring materials, supplies, and services for an organization. Might be a separate department within a company or it might be part of the supply chain management department within a company.