I've been working in supply chain management for a while, but I still get confused about the difference between procurement and purchasing. Some colleagues use them interchangeably, while others insist they are separate processes. Can someone clarify the key distinctions and when each term should be used?

That's a great question! Many people mix up these terms, but they actually cover different aspects of the procurement cycle.

Procurement and purchasing are related but distinct concepts. Purchasing is a transactional process focused on acquiring goods and services, including issuing purchase orders and making payments. Procurement, on the other hand, is a broader strategic function that involves supplier selection, contract negotiation, and risk management. If you're interested in a deeper breakdown, this blog explains it in detail, highlighting key differences and best practices for optimizing procurement processes. Companies that differentiate procurement from purchasing can achieve cost savings and improve efficiency by implementing a structured procurement strategy.