procurement

noun

pro·cure·ment | \ prə-ˈkyu̇r-mənt

, prō-\

Definition of procurement

: the act or process of procuring especially : the obtaining of military supplies by a government

Examples of procurement in a Sentence

Recent Examples on the Web

The study was conducted by collecting price predictions from experts in food procurement, retail, agriculture, economics, statistics, and food security. — Amanda Shendruk, Quartz, "How will a no-deal Brexit affect food prices?," 27 Aug. 2019 The software maintenance is related to OnBase, a Hyland Software product used by the county to manage procurement, among other things. — Courtney Astolfi, cleveland.com, "Cuyahoga County Board of Control delays vote on software contract related to company named in county criminal probe," 26 Aug. 2019 In response to Oracle’s allegations that Ubhi and other officials had biased the procurement in Amazon’s favor, the Defense Department opened an investigation into Ubhi’s conduct. — Jay Greene, Washington Post, "Pentagon rebukes Oracle as debate over a massive federal contract turns caustic," 29 July 2019 The workshop, which is in its fifth year, serves to connect small business owners with buyers from state agencies and local partners and also offers tips on how to navigate the state’s procurement process, according to Tavik. — Mary Grace Keller, baltimoresun.com/maryland/carroll, "Local businesses recognized by Governor’s Office of Small, Minority & Women Business Affairs," 20 Aug. 2019 At the time, Ball’s request was for the audit to cover legal fees and payments to and the use of outside counsel; administration staffing levels and salaries; vendor payments and invoices; procurement process; and outsourced activities. — Jess Nocera, baltimoresun.com, "Howard County Executive Calvin Ball announces smaller scope of potential school system audit," 16 July 2019 The district’s own local procurement rules at the time also prohibited purchases of $15,000 or more without board approval, the report said. — Krista Torralva, ExpressNews.com, "Harlandale ISD board braces for state action," 13 June 2019 Pitt said the state procurement process rejected the Morgan & Morgan contract, and that it should be noted the firm's attorneys are among Beshear's biggest campaign donors. — Phillip M. Bailey, The Courier-Journal, "In the fierce campaign for governor, Beshear may be exaggerating his court wins over Bevin," 22 May 2019 Dave Ryan, Viasat's president of space systems, said the contract ULA won was competed amongst the potential launch providers, though Viasat's atypical procurement process may have caused confusion. — Eric Berger, Ars Technica, "Rocket Report: SpaceX targeted, Chinese rocket scientist goes viral, SLS slips?," 5 Oct. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'procurement.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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More Definitions for procurement

procurement

noun

Financial Definition of procurement

What It Is

Procurement is a purchasing process that controls quantity, quality, sourcing and timing to ensure the best possible total cost of ownership.

How It Works

Procurement may be a simple purchasing arrangement with a supplier. It may also involve a more complex arrangement with the seller or a group of suppliers that ties required quantity, quality, and delivery into a production process.

The stages of procurement include information gathering (i.e. who are potential suppliers), supplier contacts (i.e. gathering information about the potential suppliers, background reviews (i.e. vetting, screening, checking references of potential suppliers), negotiations (i.e. setting the price and terms), fulfillment (i.e. delivery and installation), consumption, maintenance, and disposal (i.e. monitoring the actual delivery and use of the supplies or equipment), and renewal (i.e. reorders and continuing relationship with the supplier).

For example, direct procurement systems involve the integration of purchasing into a company's supply-chain management system, delivering the right supplies at the right time. This procurement method is classified in manufacturing systems as "just-in-time," which minimizes inventory holding costs and ensures the smooth delivery of supplies needed in the manufacturing process.

Why It Matters

Primarily, a procurement process ensures that the company's purchasing is competitive, fair, and provides the best possible prices available in the market. Because of the efficiencies gained through a formal procurement process, procurement is an important systems component in a company's overall management structure. Some problems on a company's cash flow and balance sheet can be traced to problems with procurement, including holding supplies and inventory too long and having the terms of payables for supplies not matched to their respective receivables.

Source: Investing Answers

procurement

noun

pro·cure·ment

Legal Definition of procurement

1 : the act of procuring

2 : the purchasing, leasing, renting, or selling of materials, services, equipment, or construction

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procurement

Definition of procurement

Examples of procurement in a Sentence

First Known Use of procurement

Financial Definition of procurement

Legal Definition of procurement

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