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Procurement Meaning: Definition, Examples, and Translations

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procurement

[prษ™หˆkjสŠษ™mษ™nt ]

Definitions

Context #1 | Noun

business

The action of obtaining or procuring something, especially for business purposes.

Synonyms

acquisition, buying, purchasing.

Which Synonym Should You Choose?

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Word Description / Examples
procurement

Used in a formal or business context, especially when referring to the process of obtaining goods or services, often involving a sequence of steps or regulations.

  • The procurement department is responsible for sourcing raw materials.
  • Government procurement policies necessitate transparent bidding processes.
acquisition

Applicable in both business and general contexts, acquisition implies the act of obtaining something usually significant, like assets, companies, or skills.

  • The company is planning the acquisition of a smaller tech firm.
  • Her acquisition of fluency in French took years of practice.
purchasing

Intermediate formality between buying and procurement, typically used in both day-to-day and business contexts to refer to the action of buying goods or services.

  • She is purchasing a new laptop for work.
  • The purchasing manager has finalized all the orders for this quarter.
buying

Casual and everyday term used when discussing the act of purchasing in a straightforward manner without the formal connotations. Suitable for personal and informal business contexts.

  • I am buying groceries for dinner tonight.
  • Customers are buying more online due to convenience.

Examples of usage

  • The company's procurement of new equipment was essential for its growth.
  • The procurement process for the project took longer than expected.
Context #2 | Noun

government

The process of obtaining goods or services on behalf of a public authority.

Synonyms

acquisition, purchasing, sourcing.

Which Synonym Should You Choose?

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Word Description / Examples
procurement

Often used in business and government sectors to refer to the formal process of obtaining goods or services. It usually involves specific procedures and regulations.

  • The procurement department is responsible for acquiring new office supplies.
  • We need to review our procurement policies to ensure compliance with the new laws.
acquisition

Typically used to describe the act of obtaining control or ownership of something, such as a company, property, or knowledge. It can relate to both tangible and intangible assets.

  • The company's acquisition of the startup boosted its technological capabilities.
  • Her acquisition of new skills made her a valuable employee.
sourcing

Commonly used in supply chain management to describe the process of finding and verifying suppliers of goods or services. It focuses on identifying the best sources.

  • Effective sourcing is crucial for maintaining product quality.
  • Our sourcing strategy focuses on finding sustainable and reliable suppliers.
purchasing

Refers to the act of buying goods or services, often in a more general or everyday context. It can be used in both personal and business settings.

  • She is responsible for purchasing supplies for the office.
  • We made a large purchasing order for the upcoming event.

Examples of usage

  • The government's procurement policies aim to ensure transparency and fairness in the selection process.
  • The procurement of military equipment is subject to strict regulations.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Business

  • Efficient procurement can save companies a lot of money by negotiating better prices with suppliers.
  • The rise of technology has led to e-procurement, where companies utilize online platforms to manage purchasing processes.
  • Sustainable procurement focuses on buying goods that are environmentally friendly and socially responsible.

Government

  • Public procurement is subject to regulations to ensure fairness and transparency in spending taxpayer money.
  • Governments often have specific processes to follow for procuring goods, to avoid corruption and ensure quality.
  • Many countries have trade agreements that affect how procurement is conducted, promoting international commerce.

Supply Chain Management

  • Procurement is a critical step in supply chain management and impacts inventory levels and overall efficiency.
  • Companies rely on strategic partnerships with suppliers, which can include long-term contracts to ensure stable procurement.
  • Risk management in procurement helps businesses prepare for disruptions, such as natural disasters or geopolitical issues.

Psychology

  • The decision-making process in procurement involves cognitive biases, such as anchoring to initial price quotes.
  • Emotion and relationship-building play important roles in negotiations during procurement processes.
  • Understanding needs versus wants is critical, as procurement professionals must prioritize essential purchases.

Origin of 'procurement'

Main points about word origin

  • The word 'procurement' comes from the Latin word 'procurare', which means 'to take care of' or 'to manage'.
  • It entered English in the late 15th century, originally referring to the act of obtaining goods.
  • Over time, its meaning expanded to include the entire process of acquiring goods and services, often for organizations.

The word 'procurement' originated from the Latin word 'procurare', which means 'to take care of' or 'to manage'. Over time, the term evolved to refer to the process of obtaining goods or services. In the context of business and government, procurement plays a crucial role in managing resources efficiently and effectively.

See also: procuring.

Word Frequency Rank

At #5,518 in frequency, this word belongs to advanced vocabulary. It's less common than core vocabulary but important for sophisticated expression.