procurement

  

Definition

The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
The process of procurement is often part of a company's strategy because the ability to purchase certain materials will determine if operations will continue. A business will not be able to survive if it's price of procurement is more than the profit it makes on selling the actual product.

Use procurement in a sentence

  • The accountant stated that the budget for procurement needed to increased, so they could afford new equipment for this quarter.

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  • The restaurant hired a new employee whose sole job was the procurement of the freshest and most inexpensive ingredients available.

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  • The employee used his company's procurement process to find a new vendor to purchase paper from at a lower cost than the previous supplier.

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