Procurement and sourcing are two distinct processes that are often confused with one another. Procurement is the process of acquiring goods and services from external sources. It involves the identification of needs, selection of vendors, negotiation of prices, and the management of contracts. On the other hand, sourcing is the process of selecting vendors, assessing supplier capabilities, and managing supplier relationships. It involves the evaluation of suppliers, the selection of the most suitable supplier, and the negotiation of terms and conditions. The main difference between procurement and sourcing is that procurement focuses on the acquisition of goods and services, while sourcing focuses on the selection of vendors. Both processes are essential for businesses to ensure that they are getting the best value for their money.
