Procurement and purchasing are two terms that are often used interchangeably, but they actually have different meanings. According to the official business definition, procurement is the process of obtaining goods and services from an external source, while purchasing is the process of buying goods and services from an external source. The main difference between the two is that procurement involves a more comprehensive approach, including the identification of needs, selection of suppliers, negotiation of contracts, and management of supplier relationships. Purchasing, on the other hand, is a more transactional process that focuses on the purchase of goods and services from a single supplier. Both processes are important for any business, as they help to ensure that the right goods and services are obtained at the right price and quality.