Procurement Definition

Procurement is a fancy word for buying; a company’s procurement specialist buys things for the company. The goal of procurement is to obtain needed objects at the best possible cost of ownership. When you go shopping you engage in procurement-if you have ever looked at two neighboring gasoline stations of equivalent quality and selected the one with the lowest cost per gallon, you have also engaged in the rational comparison of the total cost of ownership. Simple procurement is simply buying something. Complex procurement may involve long-term relationships, contracts, and advanced statistical analysis of pricing trends.