procurement

noun
pro·​cure·​ment | \ prə-ˈkyu̇r-mənt How to pronounce procurement (audio) , 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

And even just being in procurement and logistics, understanding the benefit open source can have on technology and our society, started to resonate with that. Eric Johnson, Recode, "The tech industry needs to reckon with the dark side of advertising, WordPress CEO Matt Mullenweg says," 2 Aug. 2018 Benjamin Freedland, Landry's director of luxury procurement, kicked off his trend presentation by breaking down the store's clientele. Amber Elliott, Houston Chronicle, "VIP view: Post Oak Hotel welcomes Houston bloggers to 29 Degrees North fashion boutique," 13 June 2018 Overcoming challenges like that comes with the territory, especially for a firm like iGroup Design, which for this project served as the lead architect and handled interior design, master planning and procurement. Michael James Rocha, sandiegouniontribune.com, "By design, Viejas' new hotel offers a calming escape from the busy casino floor," 29 Apr. 2018 Idaho lawmakers are bracing for a big expense — a $102 million, five-year plan to modernize the state’s accounting, payroll and procurement systems, which now operate on a three-decades-old mainframe computer system. Betsy Z. Russell, idahostatesman, "Idaho state employees are currently paid using a system built in the ’80s," 19 Jan. 2018 Truth be told, though, that's too optimistic for the world of defense procurement—especially a program relying on bleeding-edge drone swarm tech. Kyle Mizokami, Popular Mechanics, "The U.K. Promises to Develop Drone Swarms, But on an Unrealistic Timetable," 12 Feb. 2019 Saudi Arabia also wants to start producing its own pharmaceuticals, renewables and much of its military procurement. Aya Batrawy, The Seattle Times, "Saudi Arabia showcases $53B in deals at conference," 28 Jan. 2019 In another major change, Francisco Javier García Sanz, a Spaniard who has been the board member in charge of procurement since 2001, will retire. Jack Ewing, New York Times, "Volkswagen’s New C.E.O. Is an Outsider. That’s an Asset, and a Liability.," 12 Apr. 2018 Prince Mohammed is aiming to have half of Saudi military procurement done locally by 2030, from about 2 percent now. Bloomberg.com, "Trump to Host Saudi Crown Prince at White House on March 20," 12 Mar. 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

6 Apr 2019

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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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More from Merriam-Webster on procurement

Rhyming Dictionary: Words that rhyme with procurement

Spanish Central: Translation of procurement

Nglish: Translation of procurement for Spanish Speakers

Britannica English: Translation of procurement for Arabic Speakers

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