DIFFERENCE BETWEEN PROCUREMENT AND STRATEGIC SOURCING
Procurement is the process of sourcing and using suppliers to acquire the goods and services the organization needs to deliver their products or services. The end-to-end process involves planning purchases, negotiating pricing, placing orders with suppliers, receiving the goods, paying for them, and handling inventory control.
A key part of the procurement function, sourcing is the stage that comes before any purchases are made.
Although procurement and strategic sourcing are similar in that they both involve the materials a business needs to operate, there are key differences, both in the processes themselves and the goals and outcomes.
Typically, the main difference is that sourcing focuses on direct goods and services, while procurement primarily focuses more on indirect goods and services. Sourcing is about finding and vetting suppliers, and finding the balance between quality and affordability, while procurement is acquiring the goods themselves.