Procurement

Procurement

Procurement is the process of acquiring goods or services. It includes the purchase of materials, equipment, and services. The procurement process begins with the identification of a need and ends with the receipt of the goods or services.

There are three types of procurement: direct, indirect, and construction. Direct procurement is the purchase of goods or services from a supplier. Indirect procurement is the purchase of goods or services from a middleman. Construction procurement is the purchase of construction services from a contractor.

The procurement process consists of several steps:

1) identifying a need;

2) finding potential suppliers;

3) negotiating prices and terms;

4) selecting a supplier; and

5) ordering and receiving goods or services.