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Procurement and Sourcing Their Differences and How They Help Businesses.

Procurement and Sourcing Their Differences and How They Help Businesses.

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Procurement and Sourcing Their Differences and How They Help Businesses.

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  1. Procurement and Sourcing: Their Differences and How They Help Businesses by www.procurementfreelancers.com

  2. Introduction 2 Introduction Procurement and sourcing are essential business functions. Both services objectives. Understanding focus on acquiring goods and and but differ in scope their differences helps businesses optimize efficiency and cost.

  3. 3 What is Sourcing? Definition: Sourcing is the process of identifying, evaluating, and selecting suppliers. 1 Building long-term Supplier selection Negotiating contracts Ensuring supplier quality research and 4 relationships 2 5 3 Importance: Helps businesses at secure quality materials competitive prices.

  4. 4 What is Procurement? Definition: Procurement is the process of purchasing goods and services from selected suppliers. 1 Ensuring compliance and quality control Purchase order management Supplier coordination 4 2 5 3 Cost control and budgetingImportance: Ensures timely goods and and efficient services. delivery of

  5. Differences 5 Key Differences Between Sourcing & Procurement Sourcing Supplier selection & evaluation Procurement Aspect Focus Purchasing & supplier management Goal Find the best supplier Acquire goods/services efficiently Timeframe Long-term strategy Short-term execution Research, negotiation, quality assessment Order placement, payment, compliance Activities

  6. How They Help Businesses 6 Procurement Benefits: 1 Sourcing Benefits: 1 1 1 Access to reliable and cost-effective suppliers Access to reliable and cost-effective suppliers Access to reliable and cost-effective suppliers Access to reliable and cost-effective suppliers Higher quality products and services Stronger supplier relationships for long-term success 2 2 3 3

  7. Challenges & Best Practices 7 Best Practices: 1 Challenges: 1 Conduct thorough supplier vetting Leverage technology for procurement automation Foster long-term supplier relationships Finding trustworthy suppliers 1 1 Managing costs and ensuring compliance Adapting to market fluctuations 2 2 3 3

  8. Conclusion 8 Conclusion Sourcing and procurement are distinct but interconnected. Businesses need both to optimize costs and ensure smooth operations. Adopting best practices enhances efficiency and competitive advantage.

  9. Thank You! 9 Thank You!! WEBSITE - HTTPS://WWW.PROCUREMENTFREELANCERS.COM

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