Procurement for Dummies

Procurement is a word that might sound complicated at first, but don't worry, I'm here to explain it to you! Procurement is a term we use to describe the process of buying or acquiring things that we need. It's like going on a shopping trip, but instead of buying toys or clothes, we are talking about getting things for a specific purpose.

Imagine you are planning a big party at your house. You will need to buy a lot of different things like food, decorations, and maybe even a new stereo. All the steps you take to find and purchase those things, from making a list, comparing prices, going to the store, and paying for them, is what we call procurement.

Now, let's break down the concept of procurement even further. There are two different types of procurement. The first type is called goods procurement. This is when we buy physical things, like the toys, clothes, or groceries I mentioned earlier. When you go to a toy store and pick out a new action figure, that's an example of goods procurement.

The second type is called services procurement. This is when we buy a service instead of a physical item. Let's say your parents want to hire someone to come and clean the house. They would be going through the process of services procurement.

So, whether it's buying things or hiring services, the overall process is what we refer to as procurement. It's important because it helps us make sure we get the right things at the right time and at the right price. Procurement helps us plan and organize our purchases, so we don't forget anything or spend too much money.

To sum it all up, procurement is just a fancy word that means the process of buying or acquiring things we need, whether they are physical items like toys or services like house cleaning. It's like going on a shopping trip, but with a purpose in mind. It helps us plan our purchases and make sure we get the best deal.