Do you know the real difference between purchasing and procurement? A lot of people mistakenly believe these words are interchangeable. Sure, they both start with the letter P, but that’s where the similarities end. Keep reading to learn the true meaning of these words when buying IT equipment, hardware, and software.<\/p>\n
When you need something right away, you simply purchase it at the store. IT purchases work in the same manner. The transaction begins when you receive a purchase requisition. Once approved, you create a PO and place an order with the vendor. They then deliver the product. After verifying receipt, you arrange payment to the supplier.<\/p>\n
Purchasing focuses primarily on single transactions. There isn’t much emphasis on building long-term relationships with suppliers. Instead, purchasing is a reactive process to satisfy an immediate internal need. It’s about short-term goals. Buyers seek out the five “rights”: price, quality, quantity, place, and time.<\/p>\n