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Good question. In business, forms of procurement usually refer to the different ways organizations acquire goods, services, or works. Procurements can be classified based on supplier selection method, purchasing approach, or contract structure.
Common Forms of Procurement
- Direct Procurement
Purchasing raw materials, components, or items directly used in production (e.g., manufacturing inputs).
- Indirect Procurement
Acquiring goods and services that support operations but are not part of the final product (e.g., office supplies, IT services).
- Goods Procurement
Buying physical products such as equipment, machinery, or consumables.
- Services Procurement
Engaging third parties for professional or operational services (consulting, logistics, maintenance, marketing, etc.).
- Works Procurement
Contracting construction or infrastructure-related activities (buildings, civil works, installations).
Procurement Based on Supplier Selection
- Open Tendering
Any qualified supplier can bid; it promotes competition and transparency.
- Restricted / Selective Tendering
Only pre-qualified or invited suppliers participate.
- Single-Source/Sole Procurement
Purchasing from one supplier due to specialization, urgency, or compatibility needs.
- Request for Quotation (RFQ)
Used for standardized, low-complexity purchases, usually price-focused.
- Request for Proposal (RFP)
Used for complex purchases where technical capability and approach matter.
Procurement Based on Strategy
- Local Procurement
Sourcing from domestic suppliers to reduce lead time or support local industry.
- Global Procurement
Sourcing internationally for cost advantages, technology, or capacity.
- Strategic Procurement
Long-term, value-driven sourcing aligned with business goals.
- Spot/Tactical Procurement
Short-term or urgent purchasing to meet immediate needs.
In the working area, companies use a mix of these forms depending on cost, risk, urgency, complexity, and compliance requirements.
What else can I help you with?
Traditional procurement and e-Procurement?
Challenges traditional procurement
What is a Procurement departments?
A procurement department is a kind of a department which handles all the activities related to procurement, like procurement services, procurement strategy, supply chain management etc.
What is procurement performance?
Procurement performance is an activity or an integral component of integral procurement management. It involves in describing key indicators, methods, and processes that are necessary for measuring the procurement success.
What office manages the procurement process?
The procurement process is typically managed by the procurement or purchasing department within an organization. This office is responsible for sourcing goods and services, negotiating contracts, and ensuring compliance with procurement policies. In some cases, specific procurement functions may also be overseen by a dedicated procurement officer or manager. Additionally, larger organizations may have a centralized procurement office to streamline and standardize processes across departments.
What is procurement of funds?
Procurement of funds can be stated in a simple term that is the procurement of funds according to necessary. It means of getting possession of funds of a company or organization.
Is the use of the word procurement in this sentence correct Please fill up the forms for procurement of PHIC Number?
The word 'procurement' is used typically for 'goods and services' only.Example: Shipping documents are required for procurement of the shipment from the dock.Your use thus is incorrect.
Traditional procurement and e-Procurement?
Challenges traditional procurement
What appropriations are funded for 3 years?
procurement
How can you compare project procurement strategy with corporate procurement strategy?
Compare and contrast the two basic procurement strategies of corporate procurement and project procurement
What is a Procurement departments?
A procurement department is a kind of a department which handles all the activities related to procurement, like procurement services, procurement strategy, supply chain management etc.
What is the difference between E procurement and traditional 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 manual procurement?
Manual Procurement is a process of providing the guidance om procurement steps and policies to all the people in the different stages of procurement actions.
How did the public procurement act of 2011 supervise procurement process in public institutions?
Roles of procurement
What are Import procurement methods?
find the methods of procurement
What are procurement cards?
procurement cards (p-cards)
What is procurement performance?
Procurement performance is an activity or an integral component of integral procurement management. It involves in describing key indicators, methods, and processes that are necessary for measuring the procurement success.
Where can one find more information about procurement outsourcing?
Procurement outsourcing is when a company uses procurement services from a third party business. Pne can find more information about procurement outsourcing from procurement companies like GEP, ATKearney, and Procurian.
