What is Difference between Contract and procurement management?

Answer 1

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.

Answer 2

The difference between procurement management and contract management is between their scope of work as mention below:- The term Procurement is used for one time procurement of an item and a purchase order is used accordingly. In the purchase order, unit price, quantity to be supplied, total price, delivery term, the payment term is clearly mentioned. The supplier delivers the goods or equipment and paid accordingly. The purchase order contains the formatted general conditions of contract as well as special conditions of the contract. The purchaser signs the purchase order and the supplier also acknowledges the purchase order by signing on it.

The term Contract is used for repetitive procurement of same materials /consumables over a period of time. The unit price, total quantity (expected) and Total price is mentioned in the long term contract. Thereafter, order or request is issued to the contractor based on actual requirement whenever necessary to deliver the goods specifying the required quantity, contracted unit price, total price, delivery term and payment term. Contracting saves a lot of time of the purchaser and once contracting is done, it is easy to get the supplies from the contractor.