LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the key differences between purchasing and procurement.
Purchasing and procurement form the foundation of a strong and collaborative relationship with suppliers. Procurement involves the acquisition of products and services; whereas, purchasing is a subset of procurement that helps improve the bottom line of the organization. This makes it vital for companies to understand the basics of two functions and devise strategies to efficiently execute them.
At SpendEdge, we understand that procurement and purchasing are complicated processes and form an integral part of business functions. However, many times these terms are misunderstood and used interchangeably. Through this blog, we have offered a comprehensive overview of the core differences between purchasing and procurement to help companies plan their strategies more efficiently.
Understanding the difference between purchasing and procurement is crucial for companies to strategize their activities. Request a free demo to access our portfolio of customized procurement market intelligence solutions for free.
Difference between Procurement and Purchasing:
#1 Strategic Sourcing
Procurement deals require a complete analysis of costs, taxes, tariffs, and delivery methods and proper strategy before execution. On the contrary, purchasing processes focuses on delivering materials to the buyers within the given time frame and doesn't need much of a strategy or planning.
#2 Spend Management
Procurement and purchasing varies a lot in terms of managing spend. Procurement conducts a proper spend analysis and analyzes expenditure data to monitor efficiency whereas purchasing is confined to normal transactions. It simply pays for goods and services.
Companies can improve their spend management by following a structured approach. Want to know how? Request a free proposal to gain complimentary access to our solution portfolio.
#3 Supplier Capability
The procurement experts monitor suppliers and meticulously observe the complete process to find ways to improve it. They select vendors, inspect the quality of goods, and evaluate potential suppliers to ensure timely delivering of goods for the organization. However, purchasing departments engage with vendors they are already associated with.
To know more about the purchasing and procurement process and the ways to improve them, get in touch with our analysts here!
About SpendEdge:
SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
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