procurement

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/prəˈkjʊr.mənt/
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The organized acquisition of goods, services, or works, and the business function that manages buying and supplier relationships.

Examples

  • The procurement department asked each team to forecast next quarter's needs.
  • A new head of procurement joined the company in March.
  • The hospital improved procurement by tracking orders and delivery times.
  • The audit praised procurement for reducing risk in the supply chain.
  • She works in procurement and negotiates contracts with software vendors.

Similar words

supply function
acquisition
purchasing
sourcing
sourcing team
purchasing department
purchasing function
obtaining
buying team
supply management

Meanings

Organized acquisition

noun
business
neutral
The planned process of sourcing, obtaining, and managing goods, services, or works for an organization.

Examples

  • The company reviewed its procurement process before signing new supplier contracts.
  • Public procurement rules require fair competition for large contracts.
  • Poor procurement left the factory without enough raw materials.
  • The hospital improved procurement by tracking orders and delivery times.
  • Military procurement often involves long testing and approval stages.

Similar words

Buying function

noun
workplace
neutral
The team, department, or business function responsible for managing an organization's buying and supplier relationships.

Examples

  • She works in procurement and negotiates contracts with software vendors.
  • The procurement department asked each team to forecast next quarter's needs.
  • Finance and procurement disagreed over the supplier budget.
  • A new head of procurement joined the company in March.
  • The audit praised procurement for reducing risk in the supply chain.

Similar words

Etymology

From Old French procurement meaning management or stewardship, from procurer, with roots in Medieval Latin procuramentum and Latin procurare meaning to take care of or manage.

FAQ

What does procurement mean?

Procurement means the organized process of sourcing and obtaining goods, services, or works for an organization.

Is procurement the same as purchasing?

No. Purchasing is usually the buying step, while procurement covers a wider process that can include sourcing, contracts, delivery, and supplier management.

Can procurement mean a department?

Yes. Procurement can mean the team or function responsible for buying and supplier relationships.

What is public procurement?

Public procurement is the process by which a government or public body obtains goods, services, or works.

What is military procurement?

Military procurement is procurement for armed forces, especially equipment, supplies, systems, and related services.

Is procurement a verb?

No. Procurement is a noun. The verb is procure.

Where does procurement come from?

Procurement comes through Old French and Medieval Latin from words connected with managing, taking care of, and obtaining.

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