Procurement involves a series of activities and processes that are necessary for an organization to acquire necessary products or services from the best suppliers at the best price. Such products or services that are procured include Raw materials, Office equipment, Furniture, Technical equipment, telecommunications, Oil tools, printed collateral, Electrical equipment, Computer Accessories, among many others.
Because an organization can end up spending over half of its revenue on purchasing goods and services, proper procurement management is vital. Even the slightest decrease in purchasing costs can have a significant direct impact on profits, while a lack of strategic decisions can sink a financially healthy company. It can make the difference between success and failure. High purchasing costs or a high degree of wastage in the supply chain can affect an organization’s bottom line and reputation.
Purchasing consists of the last explicitly transactional steps found at the end of the overall procurement process. Procuring deals with sourcing, negotiation, and strategic selection, which must occur before the purchasing of any products or services

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