Procurement

Procurement is the activity of finding and acquiring goods and services. Its aim is to ensure a company makes and delivers products or services at the right time, right price and best cost so that customers are satisfied and the company makes a profit.

Managing the procurement process involves:

• Preparation—planning and predicting future needs
• Implementation—shipping, receiving, handling and storing goods
• Task management—ensuring every employee is doing the right task
• Follow-up—ensuring expected results and goals are achieved

Procurement activities may relate to the acquisition of physical goods or may be information-based (related to ordering, invoicing and the like). Information-based procurement activities are considered administrative.