Procurement is the process of acquiring goods, services, or works needed for a company to function.

What is Procurement?

Procurement is a critical part of supply chain management and involves assessing potential suppliers, negotiating conditions, and coordinating delivery.

The primary objectives of procurement are to reduce overall costs, guarantee high quality, deliver on time and manage risks.

To achieve these objectives, procurement professionals employ various strategies and tactics such as inviting multiple suppliers to submit proposals, comparing offers and selecting the best value for money.

Procurement process includes several stages such as creating a procurement plan, selecting suppliers, evaluating bids, negotiating contracts, and coordinating delivery.

The first step in procurement is determining the need for materials, services, or labor.

The second step is analyzing the market to identify possible suppliers and evaluate their qualifications and costs.

The final step is choosing a provider, which is a vital phase in the procurement process as it ensures that the items and services acquired meet quality standards and serve the company's best interests.