Are purchasing, procurement, and sourcing the same, and if not, what are the differences between them?

Question

Accepted Answer

Purchasing, procurement, and sourcing are distinct processes in supply chain management, each with unique roles and functions.

Purchasing refers to the act of buying goods and services, focusing on transaction execution.
Procurement encompasses the entire process of acquiring goods and services, including sourcing, negotiation, and contract management.
Sourcing is the strategic process of identifying and evaluating suppliers to obtain the best value for goods and services.
Example: Purchasing is placing an order for office supplies, while procurement involves assessing suppliers and negotiating contracts for those supplies.
Sourcing might involve researching potential suppliers for raw materials needed for production.

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