← Business Dictionary

Operations

Procurement

Also known as purchasing, sourcing

The process of finding suppliers and buying what your business needs, at the right price and quality.

Example

Getting quotes from three packaging vendors before choosing one is procurement.

Related terms

CapEx is money spent on things you keep for years, like machines or laptops. OpEx is the day-to-day running cost, like salaries and rent.

Everything it takes to get a product from raw material to your customer’s hands — suppliers, manufacturing, storage and delivery.

Any outside company you buy goods or services from to run your business.

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