oboloo Glossary

Procurement

oboloo Glossary

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.