1. Differentiate the three terms buying, procurement, and purchasing as a function of supply chain.

What are the differences? What are the similarities? Which is better?

Procurement and purchasing are both similar since they are two processes that are done during the
process of acquiring goods and services for an organization. Finding and approving a purchase's terms is
the process of procurement. Finding possible suppliers, negotiating contracts, and choosing the provider
that delivers the greatest value for money are all part of the process. The act of buying products and
services is called purchasing. While the purchasing process focuses on how goods and services are
obtained and ordered, such as issuing purchase orders and making arrangements for payment,
procurement focuses on the strategic process of product or service sourcing, such as researching,
negotiating, and planning. Purchasing focuses on short-term goals such as fulfilling the five rights in a
transaction (right quality, right quantity, right cost, right time, and right place), whereas procurement
focuses on strategic, long-term goals like gaining a competitive advantage or aligning itself with
corporate strategy or goals. The generic phrase "buying" is most frequently used to refer to purchasing
necessities and commodities. But compared to buy, purchase is seen to be a more official word. While
buying is implied for little things, purchasing is frequently used to allude to contracts and large
purchases.

2. Why do you think that today some organizations use buying, some procurement, some
purchasing?

Procurement and purchase are frequently used interchangeably. The phrases that are involved when an
organization needs products and services are the cause of that. The full cycle of satisfying an
organization's needs for products and services, even after receiving an order, is covered by
procurement. It focuses on tactical actions that will maximize the value that may be created from the
buyer-supplier relationship. The transactional part of procuring goods and services, which begins and
ends with placing an order and its fulfillment, is fulfilled through purchasing, which is a subset of
procurement. Both the functions' constituent processes and the extent of their work differ significantly.
Due to the fact that they have different aims and objectives, purchase is tactical whereas procurement is
strategic. The non-transactional aspects of purchasing products and services are highly valued in
procurement, such as gaining cost savings through efficient spend analysis, maximizing the value of
contractual agreements, improving buyer-supplier relationships, etc. Reiterating, buying is concerned
with arranging orders and making sure that payments and deliveries are made on schedule. Companies
should pick an approach based on their unique needs. Small businesses may choose to purchase with an
intention of keeping the process clean and simple, whereas enterprises may prefer a full-fledged
procurement process just to make it a core part of their corporate strategy.