Procurement Chapter 1 & 2

The process of selling products or services to customers.

The process of acquiring goods and services needed by an organization.

The process of marketing and advertising a company's products.

The process of managing human resources within an organization.

Procurement is solely responsible for making one-time purchases, while purchasing manages long-term supplier relationships.

Procurement is a cost center, while purchasing is a revenue center.

Procurement focuses on administrative tasks, while purchasing focuses on supply chain optimization.

Procurement and purchasing are synonymous terms and can be used interchangeably.

Supplier selection and negotiation.

Order placement and transaction processing.

Cost savings and price negotiation.

Strategic sourcing and supplier relationships.

Placing routine orders for office supplies.

Developing a supplier performance scorecard

Identifying preferred suppliers for critical product categories.

Analyzing market trends and identifying potential cost-saving opportunities.

Conducting a supplier audit to assess compliance and quality.

Managing day-to-day supplier inquiries and issues.

Reviewing and approving purchase orders for standard items.

Negotiating a long-term contract with a key supplier

Vendor selection

Order fulfillment

Strategic sourcing

Supplier evaluation

Vendor selection

Requisition

Invoice processing

Supplier evaluation

Vendor selection

Requisition

Invoice processing

Goods receipt

Invoice Verification

Requisition

Purchase Order (PO) Creation

Payment Processing

Goods Receipt

Request for Quotation

Request for Information

Purchase Requisition

Request for Proposal

Invitation for Bids

The Accounts Payable department

The Procurement or Purchasing department

The Finance department

The Supplier or Vendor