Endaya , Robert A.

November 12, 2022

BSOM-4D Ms. Cyril Manansala

Assignment No.7
1. Explain and Differentiate Purchasing and Procurement. (10 pts)
2. What is the process of Procurement? (5 pts)
3. Why is procurement important? (5 pts)

Preparation:
1. Purchase is the process a business or organization uses to acquire goods or
services to accomplish its goals while the Procurement is the process of
finding and agreeing to terms and acquiring goods, service or work from an
external source often via a tendering or competitive bidding process.
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.
2. The Process of Procurement the set of steps and procedures businesses
use to obtain
goods or services. They are (1) Identify which goods and services the
company needs, (2) Submit Purchase Request, (3) Assess and select
vendors, (4) Negotiate price and term, (5) Create a Purchase order, (6)
Received and inspect the delivered goods, (7) Conduct Three way matching,
(8) Approve the invoice and arrange payment and (9) Recording.
3.  Procurement is an important step in understanding supply chains,
because it helps a company find reliable suppliers that can provide
competitively priced goods and services that match the company's needs.
Without procurement, it would be impossible for most business operations
to function. Procurement management ensures that all items and services
are properly acquired so that projects and processes can proceed efficiently
and successfully.