Meaning of Word:
Procurement refers to the process of obtaining goods, services, or works from external sources, often through a formal process like purchasing or contracting.
Definitions and Meaning in English:
- As a noun: The action of obtaining or acquiring something, typically through a formal or structured process, such as purchasing goods or services.
- In business: The activities involved in sourcing, negotiating, and purchasing goods or services for an organization.
- In government or large organizations: The formal process of acquiring goods, services, or works, often governed by rules or regulations.
History and Origin:
The word “procurement” comes from the Latin procurare, meaning “to take care of” or “to manage.” The term evolved in English to describe the organized or formal process of acquiring supplies or services, especially within businesses or government agencies.
Detailed Explanation:
Procurement is an essential activity in both private and public sectors. It involves several steps:
- Identification of needs: Recognizing what goods or services are required.
- Sourcing: Finding and evaluating potential suppliers.
- Negotiation: Discussing terms, price, and conditions with suppliers.
- Acquisition: Finalizing the purchase or contract.
- Contract management: Ensuring that the terms of the agreement are followed.
Procurement can involve different approaches, such as competitive bidding or direct purchasing, depending on the organization’s requirements and policies.
Example Sentences:
- The company has a dedicated team responsible for procurement.
- Effective procurement strategies can help reduce costs for an organization.
- The procurement department is handling the acquisition of new office equipment.
- Procurement policies ensure that all purchases meet the required standards.
- The government’s procurement process is highly regulated to ensure fairness.
- He was hired as a manager in the procurement division of the firm.
- The procurement of raw materials is crucial for the manufacturing process.
- They used a competitive procurement method to select the best vendor.
- The company faced delays due to issues in their procurement procedures.
Synonyms with Short Explanation:
- Acquisition: The act of obtaining something, often used interchangeably with procurement.
- Purchase: The act of buying goods or services.
- Sourcing: The process of finding suppliers for goods or services.
- Buying: The act of acquiring goods, especially for business purposes.
- Supply Chain Management: The management of the flow of goods and services, closely related to procurement.
Related Words with Short Explanation:
- Contracting: The process of forming agreements with suppliers or service providers.
- Tendering: The process of inviting bids or proposals from suppliers for procurement.
- Supplier: An individual or business that provides goods or services.
- Logistics: The management of the flow of goods, closely related to procurement.
- Vendor: A seller or supplier of goods or services.
More Matches with Short Explanation:
- Bidding: The process of submitting offers for the supply of goods or services in response to a procurement request.
- Inventory Management: Managing goods in stock, which is closely related to procurement practices.
- Outsourcing: The practice of contracting out services or production, often through procurement.
- Supply Chain: The network of organizations involved in the production and distribution of products, including procurement activities.
- Negotiation: The process of discussing terms and conditions in procurement deals.
Antonyms:
- Disposal: The act of getting rid of goods or assets, as opposed to acquiring them.
- Deficiency: A lack or shortage of necessary goods, the opposite of procurement.
- Abandonment: The act of abandoning a need or a contract, in contrast to the structured process of procurement.
- Waste: The improper or inefficient use of resources, the opposite of effective procurement.
- Surplus: Having more than needed, the opposite of procurement when seeking to fill a gap.
