Procurement vs Purchasing | What’s the Real Difference? | Explained with Real World Example
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Welcome to the new video of @10minforsupplychain
Have you ever wondered what truly separates Procurement from Purchasing in the world of Supply Chain Management? 🤔
In this video, we break down the real difference between procurement and purchasing, with clear examples, step-by-step workflows, and expert insights from real-world business operations.
You’ll learn how purchasing is the transactional process of buying, while procurement is the strategic backbone that drives supplier selection, cost savings, and risk management.
From supplier evaluation and contract negotiation to purchase order management and invoice processing, this video explains every detail — making it perfect for students, professionals, and managers in supply chain, logistics, and procurement.
We’ll also look at how leading companies like Unilever, Siemens, and Toyota apply procurement strategy to outperform their competition — and how you can apply these lessons in your career.
🔍 What You’ll Learn
Core definitions: Procurement vs Purchasing
Process flow: From requisition to order
Real-life procurement case studies
Key metrics and KPIs in procurement
How procurement adds value beyond price
Career growth: Procurement jobs vs purchasing jobs
In this Video :
00:17 Introduction
00:38 Core definitions: Procurement vs Purchasing
01:21 Process flow: From requisition to order
02:03 Numerical Example
02:33 Real-life procurement case studies
03:02 Organizational Structure and Skills
03:38 Conclusion & Key Takeaways
🧠 This video answers questions like:
What is the difference between procurement and purchasing?
Is procurement the same as purchasing in supply chain management?
What are the steps in the procurement process?
What is purchasing in supply chain?
How does procurement create value in an organization?
What is strategic sourcing vs purchasing?
Why is procurement considered a strategic function?
What are examples of purchasing activities?
What are examples of procurement activities?
What are the roles and responsibilities of a procurement manager?
How do procurement and purchasing work together?
What is the difference between sourcing, procurement, and purchasing?
Which pays more — procurement or purchasing jobs?
What are the KPIs used in procurement and purchasing?
What is the relationship between procurement and supply chain management?
How do companies save money through procurement?
What are the stages of the procure-to-pay (P2P) process?
How does technology help in procurement and purchasing?
What is tactical vs strategic procurement?
How can I start a career in procurement or purchasing?
#supplychain #supplychainmanagement
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