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 Once the center is built, the city would go through its standard procurement process to find an operator. Aubrey Wieber, Anchorage Daily News, "How a utility sale revived plans for a long-sought addiction treatment center in Anchorage," 3 Nov. 2019 The evaluation committee will review the bids in secret, and records related to the procurement process won't be made available until a contract is awarded, Louisville Metro Chief Financial Officer Daniel Frockt wrote in the letter to James. Darcy Costello, The Courier-Journal, "Fischer to take step forward with golf course bids, over council's clear disagreement," 28 Oct. 2019 Contracts in the district are awarded through a strict and transparent procurement process that would not allow the district to consider PAC funding, Hicks said. Jen Fifield, azcentral, "Dysart school district's bond requests could build 2 new schools. What voters should know," 24 Oct. 2019 The Westminster Police Department is in the procurement process for downtown cameras in areas that receive a lot of calls for service. Catalina Righter, baltimoresun.com/maryland/carroll, "Westminster police looking at purchase of cameras for key areas downtown," 22 Oct. 2019 One area of focus should be the organ procurement process, which is a logistical nightmare — flying from one city to another to retrieve organs from a distant hospital — costly, and requires staffing that most transplant programs don’t have. David Weill, STAT, "As the need for organ transplants grows, the number of transplant physicians dwindles," 17 Oct. 2019 The procurement process caused changes to bodies that medical examiners mistook as injuries or abuse. Los Angeles Times, "In the rush to harvest body parts, death investigations have been upended," 13 Oct. 2019 Mendes told journalists that the Portuguese navy's procurement process was too slow to bring in cutting-edge technology. Sean Gallagher, Ars Technica, "Portugal’s navy reveals “tech guerrilla” unit creating tech toys that kill," 2 Oct. 2019 The report says city officials violated procurement rules and bypassed city council while issuing a no-bid contract to a vendor that provided information technology services to the city. San Diego Union-Tribune, "Multimillion-dollar contract improperly awarded, San Diego city auditor says," 13 Sep. 2019

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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Statistics for procurement

Last Updated

16 Nov 2019

Time Traveler for procurement

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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