Procurement is a comprehensive process that involves acquiring goods, services, or works for an organization. It involves activities such as sourcing suppliers, negotiating contracts, managing relationships, and ensuring timely delivery. It focuses on strategic decision$-$making and long$-$term value creation. Purchasing, a subset of procurement, is the transactional aspect of acquiring goods or services, involving the actual buying process.

Procurement covers a wide range of activities beyond mere purchasing, including strategic sourcing, supplier evaluation, contract management, risk assessment, supply chain optimization, and performance measurement. It involves analyzing market trends, identifying potential suppliers, and developing sourcing strategies to meet organizational objectives.

Purchasing, on the other hand, focuses on the execution of procurement strategies, including selecting suppliers, negotiating prices and terms, creating purchase orders, tracking deliveries, resolving issues, and managing relationships with suppliers. It aims to ensure timely and cost$-$effective acquisition of goods or services.

Procurement is a continuous process that spans the entire lifecycle of a product or service, starting with identifying the need, moving through supplier selection and negotiation, and continuing with ongoing supplier management and evaluation. Purchasing, on the other hand, focuses on obtaining goods or services at the best possible price and within the required timeframe, emphasizing transactional efficiency and ensuring the right products are acquired from the right suppliers.