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 district’s now locomotives are being built under a multi-state procurement agreement with the California and Illinois departments of transportation, which helps to lower the cost. Phil Diehl, sandiegouniontribune.com, "Coaster train to get five new locomotives," 12 July 2018 To her credit, Air Force Secretary Heather Wilson has made fixing some of the dysfunction a priority by streamlining duplicative procurement. The Editorial Board, WSJ, "Houston, We Have a Space Force," 4 July 2018 Under Naperville’s procurement code, the city can go to the open market for purchases up to $1,000 and needs at least three written quotes for purchases from ranging from $1,000 to $10,000. Suzanne Baker, Naperville Sun, "Governmental bodies jumping on Amazon bandwagon," 12 July 2018 But a spokesman for the agency noted there are plans to make sure organ procurement and transplantation would not be disrupted, Lenny and Kimberly report. Colby Itkowitz, Washington Post, "The Health 202: 'ACA' removed from swaths of Medicaid.gov website, watchdog reports," 12 July 2018 Charter schools also do not have to follow the state's procurement laws. Ricardo Cano, azcentral, "Arizona superintendent candidates: Charters need more financial oversight," 12 July 2018 As senior vice president and chief supply chain officer, Mr. Pilz will oversee procurement and delivery of goods to customers, while leading efforts to improve efficiency at the company’s plants. Erica E. Phillips, WSJ, "Logistics Movers: Honeywell Names Former SpaceX, Amazon Executive to Run Supply Chain," 9 July 2018 Richard Ehlert, the Texas Facilities Commission’s procurement director, declined to comment, and representatives of NRP and RedLeaf didn’t respond to requests for comment. Richard Webner, San Antonio Express-News, "Foundation, developer may rehab East Side’s historic Sutton complex," 29 June 2018 The employee described being summoned to a meeting with two Paul Hastings attorneys during the last few months of 2017 to discuss procurement reform. Stephen Deere, ajc, "Atlanta’s legal bills related to corruption probe top $7.5M, AJC finds," 28 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.

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First Known Use of procurement

14th century, in the meaning defined above

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Last Updated

19 Oct 2018

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The first known use of procurement was in the 14th century

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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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