Procurement Policy Definition

A procurement policy is a set of guidelines that an organization uses to determine how it will acquire goods and services. The procurement policy definition can vary depending on the organization, but typically includes criteria such as the types of goods and services that can be procured, the process for procuring them, and the authorized sources from which they can be obtained.

The procurement policy definition may also include guidance on how to manage risks associated with procurements, such as ensuring that suppliers are properly vetted and that contracts are properly executed. Organizations often develop procurement policies in response to regulations or internal best practices.