You are Here: Sourcing Software >> Sourcing vs Procurement Judging by their surface meaning, it’s easy to think that sourcing and procurement are synonyms for getting supplies for an organization. They’re not. While both are related and play key roles in your organization’s supply chain, they’re quite different and must be employed in different ways to ensure success in your organization. In this article, we’ll define exactly what sourcing and procurement are, why they matter, and how to do both better. Sourcing is a specific segment under a procurement cycle that refers to identifying, evaluating, and selecting suppliers or vendors to obtain goods, services, or raw materials required for a business's operations. It is a critical step in the procurement cycle and significantly determines the quality, cost, and availability of the goods or services purchased. By doing so, sourcing maintains the organization’s supply chain and guarantees that the organization always has access to the tools it needs to deliver on its objectives. If you are looking for tips to build a great strategic sourcing plan for your business, here's a guide you should check out. It comes with ready-made templates. Procurement, on the other hand, encompasses the entire end-to-end process of acquiring goods, services, or works from external sources. It includes identifying needs, sourcing, negotiating, purchasing, receipt and inspection of goods, invoicing, payment, and supplier management.What do you mean by sourcing?
What is procurement?
