33:799:300 Lecture 5: Purchasing Management SCM- WEEK 5

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:300
• Professor: Chris Provines

Document Summary

Procurement: is the acquisition of goods, services or works from an external source. It is favorable that the goods services or works are appropriate and that they are procured at the best possible cost to meet the needs of the acquirer in terms of quality and quantity, time and location. 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. Procurement 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) supplied in exchange for money or its equivalency. Purchasing is the process of how goods and services are ordered. Purchasing can usually be described as the transactional function of procurement for goods or services.