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What Are the Differences Between Procurement and Purchasing?

What Is Procurement?

What Is Purchasing?

Differences Between Procurement and Purchasing

The differences between procurement and processing are as follows:





It is a strategic and complex process aimed at sourcing goods or services.

It is a part of procurement and deals with the transactional functions of acquiring products.


The stages involved in procurement are more than purchasing. The number of employees involved is also high.

As it only focuses on one aspect of the supply chain, the steps involved are quite less. Moreover, the manpower required for this process is also very less.


It is a flexible process that differs from one company to another. A company's structure and size influence procurement.

It is a standardised process that is more or less similar across various industry sectors.


Procurement is proactive in nature as it finds the company's needs and takes them to a logical conclusion.

Purchases are reactive in nature. They merely fulfil the needs determined in the procurement process.


Procurement is more focused on building relationships between suppliers and maintaining them.

The focus of purchasing is more on transactional value.


It aims at completing the long-term objectives of a company.

Purchasing focuses on short term objectives.

Both procurement and purchasing are vital for the functioning of any business. Although there are differences between procurement and purchasing, both of them are equally important for the efficient management of the supply system of a business.

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