In business, procurement is the process of acquiring goods or services. It can also be defined as the strategic process of sourcing, selecting, and managing suppliers to provide goods and services to an organization.
The goal of procurement is to obtain supplies that are needed by the organization at the best possible price. To do this, procurement must take into account factors such as quality, quantity, delivery time, and terms of payment. The procurement process often includes request for proposals (RFPs), bids, contracts, and supplier management.
Good procurement practices can help organizations save money, improve quality and service levels, and reduce risk. Poor procurement practices can lead to cost overruns, delays in receiving goods or services, and sub-par quality.