In the traditional sense, there is a significant difference in that purchasing merely reflects the act of acquisition, while procurement encompasses more elements of the supply chain (re logistics, transportation etc.). One might even consider purchasing to be the poor man's version of procurement. That said and for all intents and purposes, the debate (if one could call it that) is moot. As a result of Supply Chain awareness increasing at the executive level due to its importance to an organization's bottom line, defining and confining the role of the purchasing department to such a narrow scope does a disservice to the profession. In an article from last summer titled Procurement's Expanding Role and the Executive of the Future (see the first link under Web Resources), I reviewed a roundtable that was hosted by CPO Agenda. In its entirety the post concerning the roundtable, which included CPO participants from organizations such as Nestle and Danone, is definitely a worthwhile read! However, one point that stood out was the conclusion by the majority of senior executives in which they expressed the belief that the best individual to run a purchasing department is someone who does not actually have a purchasing background. (At this stage the silence amongst my seminar audiences is usually deafening.) It would not be unreasonable for one to conclude that the historically narrow definition of purchasing/procurement has contributed, at least in part, to this position. Going beyond the realm of traditional supply chain elements (and by the way, the term supply chain is a misnomer in that it implies a sequential architecture when in reality, the acquisition process involves the synchronization of both internal as well as external stakeholders), it is important that supply chain professionals expand their area of thought and practice to include other departmental interests such as those of finance and in particular the CFO. The importance of this point was demonstrated in an article I wrote earlier this year, in which I referenced a number of reports indicating that 73% of all savings claimed by purchasing departments were not accepted by finance as true savings (included amongst the savings claims that were denied was the myth of purchase avoidance). Titled Bridging the Communications Gap Between Finance and Purchasing (see the second link), the research findings indicated that, "Too often, finance executives in Corporate America simply don't believe that purchasing departments are really bringing in the savings they claim." This disconnect according to CFO feedback, "may be because financing and purchasing don't speak the same language." Based on the above, the importance of differentiating between purchasing and procurement while interesting is at the end of the day an exercise in futility. Therefore you need to look beyond the scope of functional distinctions to see and understand the broader role your profession plays in the day-to-day success of your organization. Then, and only then will you be able to make the contribution in which all purchasing/procurement professionals are capable of providing.
what is the difference between a work order and a purchase order?
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Purchase order raise by purchase party but Profarma invoice raise by saler party on behalf of purchase order as a sample bill. Pramod kumar 9911582862
There is no specific difference between Work Order and Purchase Order. However, in general the term Purchase Order is used wherein there is only Supply part involved or Installation is free of cost and Work Order is wherever there is Supply + Installation or Installation Works. But either can be used anywhere.
The difference between purchasing and procurement is that to purchase something with currency or money. Procurement is the obtaining of goods and services through a bartering system.
Procurement is about buying. Logistics is about transporting.
The differences between international and local procurement are in the effect on the local economy. Local procurement allows resource from the area to be used while international procurement purchase them from other countries.
Minimum support price is the price at which the govt announces to purchase the produce before the harvest. Procurement price is the price at which the govt buys the produre for PDS and for maintaining the buffer stock. Generally Minimum support price is less than procurement price..
Procurement is concerned with the overall gathering of resources, while purchasing is the specific act of acquiring something by paying money for it. Purchasing is one form of procurement.
1. A traditional procurement process is a collection of many processes by interacting with other departments of a company or with the supplier. Whereas e-procurement means electronic procurement or online procurement. 2. Traditional procurement can be done by face-to-face, or via telephone. E- Procurement can only be done through online. 3. Traditional procurement is costly E-Procurement is cost effective.
what is the difference between a work order and a purchase order?
Hi, This Procurement process helps you to purchase goods and service from external suppliers.
what are the similarities between private and public procurement
Contract management is the management of contracts made with employees, vendors, partners and customers. Procurement management is where goods and services are gotten from a different organization.
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There is a difference between procurement and acquistion; however the two terms are often related. Both infer that an entity is gaining something of value, be it a service or tangible item. One might acquire an item in a variety of ways: a person might acquire money through an inheritance, by working hard for many years a saving, or by making good investments. Procurement indicates active search to acquire items or services at the best possible cost. Therefore, procurement indicates some form of payment, whereas acuisition does not.