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

Agency groups answer to chief marketing officers, who often have to work alongside chief procurement officers looking to cut costs. Stephen Wilmot, WSJ, "Tech Consultants Are the New Mad Men," 9 Nov. 2018 Dave Ryan, Viasat's president of space systems, said the contract ULA won was competed amongst the potential launch providers, though Viasat's atypical procurement process may have caused confusion. Eric Berger, Ars Technica, "Rocket Report: SpaceX targeted, Chinese rocket scientist goes viral, SLS slips?," 5 Oct. 2018 Arizona has no cap on charter schools and allows charter owners to opt out of procurement requirements and accounting guidelines required of other state agencies. Valerie Strauss, Washington Post, "The mess in Arizona’s charter school sector," 16 Jan. 2018 According to a lawsuit Rubin filed, Nisha and Mohit Sabharwal spent five years befriending her while brokering the procurement of what was supposed to be a museum-quality collection of antique pieces. Norman Vanamee, Town & Country, "How to Spot Fake Jewelry, According to the Experts," 17 Sep. 2018 The Air Force is the procurement lead on space activities, regardless of the military branch in which the program originates. Elizabeth Howell, Space.com, "Trump's Space Force Push Reopens Arguments About Military in Space," 20 June 2018 Netanyahu has not been named as a suspect in a fourth unfolding corruption case, involving the allegedly improper procurement of submarines for Israel's navy, but several of his closest associates have been arrested in the investigation. Noga Tarnopolsky, latimes.com, "Israeli police question Netanyahu and his wife in far-reaching bribery scandal," 2 Mar. 2018 Jackson wants to extend the concept of community benefits to include the procurement of goods and services. Robert Higgs, cleveland.com, "Contractors topped requirements in Cleveland's Fannie Lewis Law, Mayor Frank Jackson would like to expand efforts," 22 Feb. 2018 Night after night, while observing procurement of donor organs just outside of Philadelphia, we were struck by the sight of the donors’ bodies. Philly.com, "How the opioid epidemic looks to doctors caring for babies and transplanting organs," 22 Feb. 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

12 Jan 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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