Standardization
In business, procurement is the process of acquiring goods or services from an external source. It can be done either through direct purchase or indirectly through a contract. Procurement generally involves the following steps: requisition, supplier selection, purchase order, receipt, and invoice payment.
The term ‘procurement’ can also refer to the act of obtaining or buying something. For instance, a company might procure office supplies from an outside vendor.
When used in this context, procurement usually refers to the acquisition of goods or services that are necessary for the operation of a business. The term can be used interchangeably with purchasing.