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Should purchasing be considered a part of procurement set up in an organisation, or treated as independent organ?

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Question added by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner
Date Posted: 2016/04/14

In any case purchasing and/or procurement should be in the same set-up and according to my opinion this is a given.

Note: besides the official definition of purchasing and procurement, be aware of definitions given in different regions or markets. In any case, purchasing and procurement are dealing with expenses, goods, services and cost. Therefore it surely should be in the same set-up. You may also find a relevant topic here: (URL removed due to policy violation. Please contact support for further information.)

Syed Mehdi
by Syed Mehdi , Material Procurement Management Specialist (Director and Advisor for Construction Projects) , Saudi Aramco

We can examine that Procurement activity is overall arrangement for products and services for Purchasing and buying.

  • Procurement: Overall activities for products and services arrangement to purchase/buy. (Planning, Strategies, Procedure and Implementations)

  • Purchasing:  Overall activities to acquire products and services on behalf of required standards and terms and conditions. (Process, Negotiation, Contracts, Technical Evaluation, Quality standard, packing and shipping terms, Payment and Delivery terms and condition etc.)

  • Buying: Overall activates to acquire goods on Cash. (Immediate needs, bulk items, partial requirement etc.

Nitin Choudhary
by Nitin Choudhary , Assistant Manager - Planning & Inventory Management , Green Planet Industries

It largely depends on the kind of structure you want to give to your organization but in most organizations purchase is an integral part of procurement.

Amin ALMASRI
by Amin ALMASRI , Procurement Manager , Dur Hospitality Co.

That depends on the monthly purchasing size/capacity, merging them both can give better control and feed back to higher administration/ cost control for budgeting new future projects.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

yes should be that

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Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Fully agree with experts answer <<<<<<<<<<<<<<<<<<<

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