Procurement is the act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves:
(1) Purchase planning,
(2) Standards determination,
(3) Specifications development,
(4) Supplier research and selection,
(5) Value analysis,
(7) Price negotiation,
(8) Making the purchase,
(9) Supply contract administration,
(10) Inventory control and stores, and
(11) Disposals and other related functions.
The process of procurement is often part of a company's strategy because the ability to purchase certain materials will determine if operations will continue. A business will not be able to survive if it's price of procurement is more than the profit it makes on selling the actual product.