Procurement is the broader process of obtaining the goods and services a business needs, from defining requirements through purchasing and supplier management.
How it works in retail
It can cover merchandise for resale as well as fixtures, technology and operating supplies. Sourcing and purchase-order administration are parts of this wider activity.
A retail example
A retailer defines a packaging requirement, evaluates suppliers, agrees terms, places orders and monitors delivery performance.
What to keep in mind
Buying merchandise for resale and purchasing operating supplies involve different commercial objectives, even when they share procurement processes.
Sources & further reading
CIPS: Procurement fundamentals
Examples are illustrative. Terminology and measurement conventions can vary by business and market.
