In business, procurement is the process of acquiring goods or services. The term is derived from the Latin word procatio, which means ‘to carry forward.’
Sourcing is the process of identifying and select potential suppliers. This stage also includes evaluating supplier capabilities and developing supplier relationships.
Negotiation is the process of working with suppliers to agree on terms and conditions. This stage includes discussing pricing, delivery schedules, quality standards, and other factors.
Contract management is the process of overseeing supplier contracts. This stage includes monitoring performance, enforcing terms and conditions, and resolving disputes.