Procurement can range from contracting for an entire service to purchasing small assets such as office equipment. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale.
Procurement activities preceded by planning, referring to business plans and inline with expansion strategy of the company.
Procurement differs from purchasing in that purchasing merely reflects the act of acquisition, while procurement encompasses more elements of the supply chain (logistics, transportation etc.).
Procurement of goods and services may be categorized as:
*Direct procurement
*Procurement by comparing at least three written quotations
*Procurement by means of an institutional bidding process
The procurement method will depend on the total estimated cost of the required good or service.
Procurement
