Purchasing and Procurement are terms often used interchangeably by many. And while both do encompass similar functions, they are obviously not the same. And since these terms are mostly used in documents and strategy meetings, there is always a chance of miscommunication.
For example, CFOs and supply chain managers are mostly geared towards procurement strategies while purchasing managers devise their own purchasing tactics. But if these terms are used interchangeably in documents, there is bound to be some overlap and confusion regarding specific functions.
To clear that confusion, here’s a short infographic making clear distinction between purchasing and procurement:
To put it in a nutshell, procurement is the overarching function within which purchasing operates. So it’s better to use these terms in their specific context. And feel free to share this infographic with your team to ensure the communication remains clear and consistent.
