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

For years, Defense Department procurement officials have raised concerns that mergers and acquisitions in the defense sector could hurt competition. — Washington Post, "Trump says he is ‘a little bit concerned’ about massive defense merger," 10 June 2019 Surveillance tools widely used in Xinjiang, such as devices that extract data stored on mobile phones, are being used by police departments elsewhere, including Beijing and Shanghai, according to government procurement documents. — Chun Han Wong, WSJ, "China Applies Xinjiang’s Policing Lessons to Other Muslim Areas," 23 Dec. 2018 Heads of states or their representatives from 34 countries pledged to take concrete steps to tackle graft, including a clause in government contracts to prevent bribery and the promotion of electronic systems for procurement and public works. — Ben Bartenstein, Bloomberg.com, "Venezuela Anti-U.S Revolt Ending in Whimper as Exodus Mounts," 14 Apr. 2018 Boeing’s annual report cited government estimates that taxpayers will spend $41 billion on development and procurement of the tankers, of which approximately $30 billion will go to Boeing. — Jon Talton, The Seattle Times, "Boeing’s other problem: Much-needed Air Force tanker keeps hitting snafus," 12 Apr. 2019 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

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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15 Jun 2019

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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