Page 57 - BASIC PRINCIPLES OF QUANTITY SURVEYING PROFESSIONAL PRACTICES

Politeknik Kota Bharu

Table 3.1: Difference between procurement and purchasing

Procurement: Purchasing:

Strategic process Transactional activities

• Identify needs and • Receive purchase
requirements requisitions

• Source and evaluate • Evaluate quotes from
local, national, or suppliers

international supplier(s) • Raise and process
• Negotiate terms, purchase orders

conditions, and (PO)
contracts • Receive

• Build and manage goods/services and
supplier relationships warehouse
• Perform cost savings management

and profit margin • Process and
analysis organize payment

with supplier

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