What does procurement mean Meaning and Definition

Pronunciation

/ˈprɑː.kaɪ.mənt/

Part of Speech

Noun

Definition

The act of acquiring goods, services, or works from an external source by an organization, business, or individual. It involves planning, selecting, and managing suppliers to ensure that the needs of the organization are met.

Examples

• The company outsourced the procurement process to a third-party supplier.
• The purchasing manager was responsible for the procurement of office supplies.

Synonyms

• Purchase
• Buying
• Acquisition

Antonyms

• Self-supply
• Manufacture

Additional Information

Procurement is a critical function in businesses, governments, and organizations, and it plays a significant role in shaping their overall performance and success. The process of procurement involves several stages, including needs assessment, supplier selection, contract negotiation, and contract management.

The benefits of effective procurement include cost savings, improved quality, increased efficiency, and better supplier relationships. However, procurement also involves risks, such as supply chain disruptions, counterfeit products, and supplier insolvency.

To mitigate these risks, organizations use various procurement techniques, such as just-in-time inventory management, supplier development, and risk management strategies. Additionally, procurement professionals must stay up-to-date with the latest trends, technologies, and best practices in procurement to remain competitive.

Procurement is a complex and dynamic field that requires strong analytical, communication, and negotiation skills. Procurement professionals must be able to analyze data, evaluate suppliers, and negotiate contracts to ensure that the needs of their organization are met.

Etymology

The word “procurement” comes from the Latin words “procurare,” meaning “to seek” or “to procure,” and “curare,” meaning “to take care of.” In modern times, the concept of procurement has evolved to encompass the entire process of acquiring goods and services, from initial needs assessment to final contract management.

Usage Notes

The word “procurement” is often used in business, government, and technical contexts to describe the process of acquiring goods or services. In everyday language, it is also used to describe the act of purchasing something, such as a product or a service.

Procurement is often used interchangeably with other terms, such as “buying” or “purchasing,” but it generally carries a more formal and technical connotation.

Cultural References

Procurement has been featured in various business and management books, articles, and documentaries, including “Procurement and Supply Chain Management” by C. Billings and “Supply Chain Management” by K. Stevenson.

Idiomatic Expressions or Phrases

• “procurement process” (referring to the stages involved in acquiring goods or services)
• “procurement team” (referring to the team responsible for acquisition)

Related Words or Phrases

• Sourcing
• Purchase
• Acquisition
• Buying

Collocations

• The procurement department
• The procurement process
• Procurement and supply chain management

Frequency of Use

The word “procurement” is commonly used in business, government, and technical contexts, but it is not as widely used in everyday language. According to Google Ngram Viewer, the word “procurement” has seen a steady increase in usage since the 1960s, with a peak in the 2000s.

Common Misspellings

• Procuerment
• Procurement
• Procurement