Procurement or Purchasing?

The Difference between Purchasing & Procurement.

Zahara's guide to PO Software Key Terms.

If you are researching purchase order software the terms Purchasing and procurement come up time and time again. This sometimes leads to alternative names for very similar software.Some companies use terms such as:

  • E-Procurement
  • E-Purchasing
  • Porcurement Software
  • Purchasing Software
  • Purchase Requisition Software
  • Procurement Requisition Software
  • However, The Term We Prefer to Use is Purchase Order Software, as it says exactly what it is. Creating less Confusion

    From our research here at Zahara, purchasing seems to be a more British term compared to the America procurement. However, A lot of business people seem to use the terms of procurement of purchasing interchangeably. When in fact, Purchasing is just a part of the procurement process. Procurement is the process of selecting suppliers, establishing terms of payment & negotiating contracts. Overall, Procurement is essentially the acquiring of all goods & services a business needs.

    Companies may have specific procurement strategies, which can be tied to a companies core values. An example of this is if a company has a green ethical identity. That company might want to only purchase goods which can be recycled or have been recycled.

    Procurement to Purchase Cycle

  • Identifying Requirement.
  • Sourcing Goods.
  • Authorization Request.
  • Purchase Order Generated.
  • Goods Received Notice.
  • Payment to Supplier.

    This process can take a while. Usually, because the person who requests a purchase, might have to seek approval. this can involve sending over to their superior the item and the note of why they want it. If you then deliver this notice to your superior. Who then might have to have the departments spending approved by their superior. This leads, to the creation of an unnecessary paper trail, which takes time and is at risk of getting lost. However, this cycle can be sped up significantly, and provide you with added security. However, through the use of Purchase Order Software (Sometimes known as E-Procurement Software). Using such automated software is becoming critical for the modern business. It is important regardless of the size of your business. It's inefficient for businesses to be tracking past emails and receipts. It is hard and inefficient, and a waste of time, when you can use purchase order software such as Zahara.

    Send Purchase Orders like this!

    Zahara Purchase Order Software purchasing procurement

    Don't Send Them Like this

    Example Purchase Order

    USe Zahara Purchase Order Software


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