Procurement In Business Definition

In business, procurement is the process of acquiring goods or services. It can be done internally or externally. Internal procurement is when a company procures goods or services from another department within the same company. External procurement is when a company procures goods or services from an outside supplier.

There are many different types of procurement, but all follow the same basic process:

1. The buyer identifies a need for a good or service.

2. The buyer requests bids from suppliers who can provide the good or service.

3. The buyer evaluates the bids and selects a supplier.

4. The buyer and supplier negotiate a contract.

5. The buyer pays the supplier and receives the good or service.