procurement

noun pro·cure·ment \ prə-ˈkyu̇r-mənt , prō- \

|Updated on: 10 Aug 2018

Definition of procurement

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

Recent Examples of procurement from the Web

Romero graduated from Edgewood’s Kennedy High School in 2000, worked in the district 10 years in procurement and is now a purchasing agent for Southside ISD.

— krista torralva, San Antonio Express-News, "Two years after takeover, state eases control of Edgewood ISD," 2 July 2018
The measure, which now heads to the Senate and an eventual committee established by the two chambers to reconcile differences includes $2.8 billion in advance procurement and $5.3 billion to fully fund two Virginia-class submarines.

— stephen singer, courant.com, "U.S. House Rejects Bid For 3 Connecticut-Built Submarines A Year," 29 June 2018
Signing one player to a contract that has a structure quite different than what the Bears normally construct isn’t going to hamper them in player procurement in future years.

— brad biggs, chicagotribune.com, "Bears Q&A: Do the Bears have a new approach in the weight room? What is Kyle Fuller's contract moving forward?," 28 Mar. 2018
So, in a prelude to the many money sinks in defense procurement that would follow, Fermi's spitballing became a series of US Air Force and AEC projects that would span three decades.

— sean gallagher, Ars Technica, "Best bad idea ever? Why Putin’s nuclear-powered missile is possible… and awful," 22 Mar. 2018
The project’s design is expected to be complete next month, and the agency has asked the state Board of Public Works to expedite the procurement process at its next meeting to allow construction to break ground in January and finish by July 2020.

— colin campbell, baltimoresun.com, "BWI proposes expedited, $60 million concourse expansion for Southwest Airlines," 10 July 2018
The offer allows half of the 19 farmers who had their milk procurement contracts terminated by Dean Foods effective July 15 to narrowly avoid shuttering their dairy operations.

— kate talerico, The Courier-Journal, "As Dean Milk contract ends, some farmers pick up a last-minute hope," 29 June 2018
Federal procurement officers suddenly had to justify no-bid contracts in excess of $20 million (a figure that later rose to $22 million).

— erica martinson, Anchorage Daily News, "Under rule change, Alaska Native corporations could once again get high-dollar government contracts," 26 June 2018
Shannon Andrews will take over as Chicago’s chief procurement officer, Emanuel announced Wednesday.

— chicago tribune staff, chicagotribune.com, "Morning Spin: Rauner campaign doubles down on Pritzker 'plumbing' attack," 21 June 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.

First Known Use of procurement

14th century

in the meaning defined above

See Words from the same year

NEW! Time Traveler

Other Military Terms

bivouac, logistics, petard, salient, sally, supernumerary, tactical

Financial Definition of PROCUREMENT

procurement

noun

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