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<span>History</span> </div> </a> <ul id="toc-History-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Sourcing_and_acquisition" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Sourcing_and_acquisition"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Sourcing and acquisition</span> </div> </a> <button aria-controls="toc-Sourcing_and_acquisition-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Sourcing and acquisition subsection</span> </button> <ul id="toc-Sourcing_and_acquisition-sublist" class="vector-toc-list"> <li id="toc-Acquisition_processes" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Acquisition_processes"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>Acquisition processes</span> </div> </a> <ul id="toc-Acquisition_processes-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Decision-making" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Decision-making"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>Decision-making</span> </div> </a> <ul id="toc-Decision-making-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Sourcing_business_model" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Sourcing_business_model"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>Sourcing business model</span> </div> </a> <ul id="toc-Sourcing_business_model-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Specific_types" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Specific_types"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Specific types</span> </div> </a> <button aria-controls="toc-Specific_types-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Specific types subsection</span> </button> <ul id="toc-Specific_types-sublist" class="vector-toc-list"> <li id="toc-Government_procurement" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Government_procurement"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.1</span> <span>Government procurement</span> </div> </a> <ul id="toc-Government_procurement-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Sustainable_or_green_procurement" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Sustainable_or_green_procurement"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.2</span> <span>Sustainable or green procurement</span> </div> </a> <ul id="toc-Sustainable_or_green_procurement-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Electronic_procurement" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Electronic_procurement"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.3</span> <span>Electronic procurement</span> </div> </a> <ul id="toc-Electronic_procurement-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Joint_procurement" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Joint_procurement"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.4</span> <span>Joint procurement</span> </div> </a> <ul id="toc-Joint_procurement-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Other_types" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Other_types"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.5</span> <span>Other types</span> </div> </a> <ul id="toc-Other_types-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Measuring_performance" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Measuring_performance"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Measuring performance</span> </div> </a> <ul id="toc-Measuring_performance-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Personnel_and_roles" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Personnel_and_roles"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Personnel and roles</span> </div> </a> <button aria-controls="toc-Personnel_and_roles-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Personnel and roles subsection</span> </button> <ul id="toc-Personnel_and_roles-sublist" class="vector-toc-list"> <li id="toc-Participation_of_women" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Participation_of_women"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.1</span> <span>Participation of women</span> </div> </a> <ul id="toc-Participation_of_women-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Legal_aspects" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Legal_aspects"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Legal aspects</span> </div> </a> <ul id="toc-Legal_aspects-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Future_scenarios" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Future_scenarios"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>Future scenarios</span> </div> </a> <ul id="toc-Future_scenarios-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">10</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">11</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span 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Available in 24 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-24" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">24 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-af mw-list-item"><a href="https://af.wikipedia.org/wiki/Aankoopfunksie" title="Aankoopfunksie – Afrikaans" lang="af" hreflang="af" data-title="Aankoopfunksie" data-language-autonym="Afrikaans" data-language-local-name="Afrikaans" class="interlanguage-link-target"><span>Afrikaans</span></a></li><li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D8%AA%D9%88%D8%B1%D9%8A%D8%AF" title="توريد – Arabic" lang="ar" hreflang="ar" data-title="توريد" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-ca mw-list-item"><a href="https://ca.wikipedia.org/wiki/Aprovisionament" title="Aprovisionament – Catalan" lang="ca" hreflang="ca" data-title="Aprovisionament" data-language-autonym="Català" data-language-local-name="Catalan" class="interlanguage-link-target"><span>Català</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Beschaffung" title="Beschaffung – German" lang="de" hreflang="de" data-title="Beschaffung" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-et mw-list-item"><a href="https://et.wikipedia.org/wiki/Hankimine" title="Hankimine – Estonian" lang="et" hreflang="et" data-title="Hankimine" data-language-autonym="Eesti" data-language-local-name="Estonian" class="interlanguage-link-target"><span>Eesti</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Aprovisionamiento" title="Aprovisionamiento – Spanish" lang="es" hreflang="es" data-title="Aprovisionamiento" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eu mw-list-item"><a href="https://eu.wikipedia.org/wiki/Hornikuntza_(enpresa)" title="Hornikuntza (enpresa) – Basque" lang="eu" hreflang="eu" data-title="Hornikuntza (enpresa)" data-language-autonym="Euskara" data-language-local-name="Basque" class="interlanguage-link-target"><span>Euskara</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D8%AA%D8%AF%D8%A7%D8%B1%DA%A9%D8%A7%D8%AA" title="تدارکات – Persian" lang="fa" hreflang="fa" data-title="تدارکات" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Approvisionnement" title="Approvisionnement – French" lang="fr" hreflang="fr" data-title="Approvisionnement" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%EC%A1%B0%EB%8B%AC" title="조달 – Korean" lang="ko" hreflang="ko" data-title="조달" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-hi mw-list-item"><a href="https://hi.wikipedia.org/wiki/%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A4%BE%E0%A4%AA%E0%A4%A3" title="प्रापण – Hindi" lang="hi" hreflang="hi" data-title="प्रापण" data-language-autonym="हिन्दी" data-language-local-name="Hindi" class="interlanguage-link-target"><span>हिन्दी</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Pengadaan" title="Pengadaan – Indonesian" lang="id" hreflang="id" data-title="Pengadaan" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Approvvigionamento" title="Approvvigionamento – Italian" lang="it" hreflang="it" data-title="Approvvigionamento" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-mk mw-list-item"><a href="https://mk.wikipedia.org/wiki/%D0%88%D0%B0%D0%B2%D0%BD%D0%B8_%D0%BD%D0%B0%D0%B1%D0%B0%D0%B2%D0%BA%D0%B8" title="Јавни набавки – Macedonian" lang="mk" hreflang="mk" data-title="Јавни набавки" data-language-autonym="Македонски" data-language-local-name="Macedonian" class="interlanguage-link-target"><span>Македонски</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Inkoop" title="Inkoop – Dutch" lang="nl" hreflang="nl" data-title="Inkoop" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E8%AA%BF%E9%81%94" title="調達 – Japanese" lang="ja" hreflang="ja" data-title="調達" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Nabycie" title="Nabycie – Polish" lang="pl" hreflang="pl" data-title="Nabycie" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Aprovisionamento" title="Aprovisionamento – Portuguese" lang="pt" hreflang="pt" data-title="Aprovisionamento" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ro mw-list-item"><a href="https://ro.wikipedia.org/wiki/Achizi%C8%9Bie_public%C4%83" title="Achiziție publică – Romanian" lang="ro" hreflang="ro" data-title="Achiziție publică" data-language-autonym="Română" data-language-local-name="Romanian" class="interlanguage-link-target"><span>Română</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%9F%D1%80%D0%BE%D0%BA%D1%8C%D1%8E%D1%80%D0%B5%D0%BC%D0%B5%D0%BD%D1%82" title="Прокьюремент – Russian" lang="ru" hreflang="ru" data-title="Прокьюремент" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-sr mw-list-item"><a href="https://sr.wikipedia.org/wiki/%D0%88%D0%B0%D0%B2%D0%BD%D0%B0_%D0%BD%D0%B0%D0%B1%D0%B0%D0%B2%D0%BA%D0%B0" title="Јавна набавка – Serbian" lang="sr" hreflang="sr" data-title="Јавна набавка" data-language-autonym="Српски / srpski" data-language-local-name="Serbian" class="interlanguage-link-target"><span>Српски / srpski</span></a></li><li class="interlanguage-link interwiki-tr mw-list-item"><a href="https://tr.wikipedia.org/wiki/Tedarik" title="Tedarik – Turkish" lang="tr" hreflang="tr" data-title="Tedarik" data-language-autonym="Türkçe" data-language-local-name="Turkish" class="interlanguage-link-target"><span>Türkçe</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%9F%D0%BE%D1%81%D1%82%D0%B0%D1%87%D0%B0%D0%BD%D0%BD%D1%8F" title="Постачання – Ukrainian" lang="uk" hreflang="uk" data-title="Постачання" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/Thu_mua" title="Thu mua – Vietnamese" lang="vi" hreflang="vi" data-title="Thu mua" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q829492#sitelinks-wikipedia" title="Edit 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searchaux" style="display:none">Acquisition of goods and services</div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">For other uses, see <a href="/wiki/Procurement_(disambiguation)" class="mw-disambig" title="Procurement (disambiguation)">Procurement (disambiguation)</a>.</div> <p class="mw-empty-elt"> </p> <style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output 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.mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><table class="sidebar sidebar-collapse nomobile nowraplinks hlist"><tbody><tr><th class="sidebar-title" style="font-size:130%;"><a href="/wiki/Business_administration" title="Business administration">Business administration</a></th></tr><tr><td class="sidebar-above"> Management of a business</td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Accounting" title="Accounting">Accounting</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Management_accounting" title="Management accounting">Management accounting</a></li> <li><a href="/wiki/Financial_accounting" title="Financial accounting">Financial accounting</a></li> <li><a href="/wiki/Audit" title="Audit">Audit</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Legal_person" title="Legal person">Business entity</a> (<a href="/wiki/List_of_legal_entity_types_by_country" title="List of legal entity types by country">list</a>)</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Corporate_group" title="Corporate group">Corporate group</a></li> <li><a href="/wiki/Corporation_sole" title="Corporation sole">Corporation sole</a></li> <li><a href="/wiki/Company" title="Company">Company</a></li> <li><a href="/wiki/Conglomerate_(company)" title="Conglomerate (company)">Conglomerate</a></li> <li><a href="/wiki/Holding_company" title="Holding company">Holding company</a></li> <li><a href="/wiki/Cooperative" title="Cooperative">Cooperative</a></li> <li><a href="/wiki/Corporation" title="Corporation">Corporation</a></li> <li><a href="/wiki/Joint-stock_company" title="Joint-stock company">Joint-stock company</a></li> <li><a href="/wiki/Limited_liability_company" title="Limited liability company">Limited liability company</a></li> <li><a href="/wiki/Partnership" title="Partnership">Partnership</a></li> <li><a href="/wiki/Privately_held_company" title="Privately held company">Privately held company</a></li> <li><a href="/wiki/Sole_proprietorship" title="Sole proprietorship">Sole proprietorship</a></li> <li><a href="/wiki/State-owned_enterprise" title="State-owned enterprise">State-owned enterprise</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_governance" title="Corporate governance">Corporate governance</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Annual_general_meeting" title="Annual general meeting">Annual general meeting</a></li> <li><a href="/wiki/Board_of_directors" title="Board of directors">Board of directors</a></li> <li><a href="/wiki/Supervisory_board" title="Supervisory board">Supervisory board</a></li> <li><a href="/wiki/Advisory_board" title="Advisory board">Advisory board</a></li> <li><a href="/wiki/Audit_committee" title="Audit committee">Audit committee</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_law" title="Corporate law">Corporate 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style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_title" title="Corporate title">Corporate title</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Chairman" class="mw-redirect" title="Chairman">Chairman</a></li> <li><a href="/wiki/Chief_business_officer" title="Chief business officer">Chief business officer</a>/<a href="/wiki/Chief_brand_officer" class="mw-redirect" title="Chief brand officer">Chief brand officer</a></li> <li><a href="/wiki/Chief_executive_officer" title="Chief executive officer">Chief executive officer</a>/<a href="/wiki/Chief_operating_officer" title="Chief operating officer">Chief operating officer</a></li> <li><a href="/wiki/Chief_financial_officer" title="Chief financial officer">Chief financial officer</a></li> <li><a href="/wiki/Chief_human_resources_officer" title="Chief human resources officer">Chief human resources officer</a></li> <li><a href="/wiki/Chief_information_officer" title="Chief information officer">Chief information officer</a>/<a href="/wiki/Chief_marketing_officer" title="Chief marketing officer">Chief marketing officer</a></li> <li><a href="/wiki/Chief_product_officer" title="Chief product officer">Chief product officer</a>/<a href="/wiki/Chief_technology_officer" title="Chief technology officer">Chief technology officer</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Economics" title="Economics">Economics</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Commodity" title="Commodity">Commodity</a></li> <li><a href="/wiki/Public_economics" title="Public economics">Public economics</a></li> <li><a href="/wiki/Labour_economics" title="Labour economics">Labour economics</a></li> <li><a href="/wiki/Development_economics" title="Development economics">Development economics</a></li> <li><a href="/wiki/International_economics" title="International economics">International economics</a></li> <li><a href="/wiki/Mixed_economy" title="Mixed economy">Mixed economy</a></li> <li><a href="/wiki/Planned_economy" title="Planned economy">Planned economy</a></li> <li><a href="/wiki/Econometrics" title="Econometrics">Econometrics</a></li> <li><a href="/wiki/Environmental_economics" title="Environmental economics">Environmental economics</a></li> <li><a href="/wiki/Open_economy" title="Open economy">Open economy</a></li> <li><a href="/wiki/Market_economy" title="Market economy">Market economy</a></li> <li><a href="/wiki/Knowledge_economy" title="Knowledge economy">Knowledge economy</a></li> <li><a href="/wiki/Microeconomics" title="Microeconomics">Microeconomics</a></li> <li><a href="/wiki/Macroeconomics" title="Macroeconomics">Macroeconomics</a></li> <li><a href="/wiki/Economic_development" title="Economic development">Economic development</a></li> <li><a href="/wiki/Economic_statistics" title="Economic statistics">Economic statistics</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Finance</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Financial_statement" title="Financial statement">Financial statement</a></li> <li><a href="/wiki/Insurance" title="Insurance">Insurance</a></li> <li><a href="/wiki/Factoring_(finance)" title="Factoring (finance)">Factoring</a></li> <li><a href="/wiki/Cash_conversion_cycle" title="Cash conversion cycle">Cash conversion cycle</a></li> <li><a href="/wiki/Insider_dealing" class="mw-redirect" title="Insider dealing">Insider dealing</a></li> <li><a href="/wiki/Capital_budgeting" title="Capital budgeting">Capital budgeting</a></li> <li><a href="/wiki/Commercial_bank" title="Commercial bank">Commercial bank</a></li> <li><a href="/wiki/Derivative_(finance)" title="Derivative (finance)">Derivative</a></li> <li><a href="/wiki/Financial_statement_analysis" title="Financial statement analysis">Financial statement analysis</a></li> <li><a href="/wiki/Financial_risk" title="Financial risk">Financial risk</a></li> <li><a href="/wiki/Public_finance" title="Public finance">Public finance</a></li> <li><a href="/wiki/Corporate_finance" title="Corporate finance">Corporate finance</a></li> <li><a href="/wiki/Managerial_finance" title="Managerial finance">Managerial finance</a></li> <li><a href="/wiki/International_finance" title="International finance">International finance</a></li> <li><a href="/wiki/Liquidation" title="Liquidation">Liquidation</a></li> <li><a href="/wiki/Stock_market" title="Stock market">Stock market</a></li> <li><a href="/wiki/Financial_market" title="Financial market">Financial market</a></li> <li><a href="/wiki/Tax" title="Tax">Tax</a></li> <li><a href="/wiki/Financial_institution" title="Financial institution">Financial institution</a></li> <li><a href="/wiki/Capital_management" title="Capital management">Capital management</a></li> <li><a href="/wiki/Venture_capital" title="Venture capital">Venture capital</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Types of management</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Asset_management" title="Asset management">Asset</a></li> <li><a href="/wiki/Brand_management" title="Brand management">Brand</a></li> <li><a href="/wiki/Business_intelligence" title="Business intelligence">Business intelligence</a></li> <li><a href="/wiki/Business_development" title="Business development">Business development</a></li> <li><a href="/wiki/Capacity_management" title="Capacity management">Capacity</a></li> <li><a href="/wiki/Capability_management_in_business" title="Capability management in business">Capability</a></li> <li><a href="/wiki/Change_management" title="Change management">Change</a> <ul><li><a href="/wiki/Innovation_management" title="Innovation management">innovation</a></li></ul></li> <li><a href="/wiki/Commercial_management" title="Commercial management">Commercial</a> <ul><li><a href="/wiki/Marketing_management" title="Marketing management">Marketing</a></li></ul></li> <li><a href="/wiki/Communications_management" title="Communications management">Communications</a></li> <li><a href="/wiki/Configuration_management" title="Configuration management">Configuration</a></li> <li><a href="/wiki/Conflict_management" title="Conflict management">Conflict</a></li> <li><a href="/wiki/Content_management" title="Content management">Content</a></li> <li><a href="/wiki/Customer_relationship_management" title="Customer relationship management">Customer relationship</a></li> <li><a href="/wiki/Distributed_management" title="Distributed management">Distributed</a></li> <li><a href="/wiki/Earned_value_management" title="Earned value management">Earned value</a></li> <li><a href="/wiki/Electronic_business" title="Electronic business">Electronic business</a></li> <li><a href="/wiki/Enterprise_resource_planning" title="Enterprise resource planning">Enterprise resource planning</a>  <ul><li><a href="/wiki/Management_information_system" title="Management information system">management information system</a></li></ul></li> <li><a href="/wiki/Financial_management" title="Financial management">Financial</a></li> <li><a href="/wiki/Human_resource_management" title="Human resource management">Human resource</a>  <ul><li><a href="/wiki/Human_resources" title="Human resources">development</a></li></ul></li> <li><a href="/wiki/Incident_management" title="Incident management">Incident</a></li> <li><a href="/wiki/Knowledge_management" title="Knowledge management">Knowledge</a></li> <li><a href="/wiki/Enterprise_legal_management" title="Enterprise legal management">Legal</a></li> <li><a href="/wiki/Materials_management" title="Materials management">Materials</a></li> <li><a href="/wiki/Network_management" title="Network management">Network</a> <ul><li><a href="/wiki/Network_administrator" title="Network administrator">administrator</a></li></ul></li> <li><a href="/wiki/Office_management" title="Office management">Office</a></li> <li><a href="/wiki/Operations_management" title="Operations management">Operations</a>  <ul><li><a href="/wiki/Operations_management_for_services" title="Operations management for services">services</a></li></ul></li> <li><a href="/wiki/Performance_management" class="mw-redirect" title="Performance management">Performance</a></li> <li><a href="/wiki/Power_management" title="Power management">Power</a></li> <li><a href="/wiki/Business_process_management" title="Business process management">Process</a></li> <li><a href="/wiki/Product_life-cycle_management" class="mw-redirect" title="Product life-cycle management">Product life-cycle</a></li> <li><a href="/wiki/Product_management" title="Product management">Product</a></li> <li><a href="/wiki/Project_management" title="Project management">Project</a></li> <li><a href="/wiki/Property_management" title="Property management">Property</a></li> <li><a href="/wiki/Quality_management" title="Quality management">Quality</a></li> <li><a href="/wiki/Records_management" title="Records management">Records</a></li> <li><a href="/wiki/Resource_management" title="Resource management">Resource</a></li> <li><a href="/wiki/Risk_management" title="Risk management">Risk</a>  <ul><li><a href="/wiki/Crisis_management" title="Crisis management">crisis</a></li></ul></li> <li><a href="/wiki/Sales_management" title="Sales management">Sales</a></li> <li><a href="/wiki/Security_management" title="Security management">Security</a></li> <li><a href="/wiki/Service_management" title="Service management">Service</a></li> <li><a href="/wiki/Strategic_management" title="Strategic management">Strategic</a></li> <li><a href="/wiki/Supply_chain_management" title="Supply chain management">Supply chain</a></li> <li><a href="/wiki/Systems_management" title="Systems management">Systems</a> <ul><li><a href="/wiki/System_administrator" title="System administrator">administrator</a></li></ul></li> <li><a href="/wiki/Talent_management" title="Talent management">Talent</a></li> <li><a href="/wiki/Technology_management" title="Technology management">Technology</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Organization</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Organizational_architecture" title="Organizational architecture">Architecture</a></li> <li><a href="/wiki/Organizational_behavior" title="Organizational behavior">Behavior</a></li> <li><a href="/wiki/Organizational_communication" title="Organizational communication">Communication</a></li> <li><a href="/wiki/Organizational_culture" title="Organizational culture">Culture</a></li> <li><a href="/wiki/Organizational_conflict" title="Organizational conflict">Conflict</a></li> <li><a href="/wiki/Organization_development" title="Organization development">Development</a></li> <li><a href="/wiki/Organizational_engineering" title="Organizational engineering">Engineering</a></li> <li><a href="/wiki/Hierarchical_organization" title="Hierarchical organization">Hierarchy</a></li> <li><a href="/wiki/Organizational_patterns" title="Organizational patterns">Patterns</a></li> <li><a href="/wiki/Organizational_space" title="Organizational space">Space</a></li> <li><a href="/wiki/Organizational_structure" title="Organizational structure">Structure</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Trade" title="Trade">Trade</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Business_analysis" title="Business analysis">Business analysis</a></li> <li><a href="/wiki/Business_ethics" title="Business ethics">Business ethics</a></li> <li><a href="/wiki/Business_plan" title="Business plan">Business plan</a></li> <li><a href="/wiki/Business_judgment_rule" title="Business judgment rule">Business judgment rule</a></li> <li><a href="/wiki/Consumer_behaviour" title="Consumer behaviour">Consumer behaviour</a></li> <li><a href="/wiki/Business_operations" title="Business operations">Business operations</a></li> <li><a href="/wiki/International_business" title="International business">International business</a></li> <li><a href="/wiki/Business_model" title="Business model">Business model</a></li> <li><a href="/wiki/International_trade" title="International trade">International trade</a> <ul><li><a href="/wiki/Trade_route" title="Trade route">Trade route</a></li></ul></li> <li><a href="/wiki/Business_process" title="Business process">Business process</a></li> <li><a href="/wiki/Business_statistics" class="mw-redirect" title="Business statistics">Business statistics</a></li></ul></div></div></td> </tr><tr><td class="sidebar-below"> <ul><li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Emblem-money.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/16px-Emblem-money.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/24px-Emblem-money.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/32px-Emblem-money.svg.png 2x" data-file-width="48" data-file-height="48" /></a></span> </span><a href="/wiki/Portal:Business_and_economics" class="mw-redirect" title="Portal:Business and economics">Business and economics portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Business_administration" title="Template:Business administration"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Business_administration" title="Template talk:Business administration"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Business_administration" title="Special:EditPage/Template:Business administration"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><b>Procurement</b> is the process of locating and agreeing to terms and <a href="/wiki/Purchasing" title="Purchasing">purchasing</a> <a href="/wiki/Goods" title="Goods">goods</a>, <a href="/wiki/Service_(economics)" title="Service (economics)">services</a>, or other works from an external source, often with the use of a tendering or competitive <a href="/wiki/Bidding" title="Bidding">bidding</a> process.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a <a href="/wiki/Government_agency" title="Government agency">government agency</a> buys goods or services through this practice, it is referred to as <i><a href="/wiki/Government_procurement" title="Government procurement">government procurement</a></i> or public procurement.<sup id="cite_ref-:32_2-0" class="reference"><a href="#cite_note-:32-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p><p>Procurement as an <a href="/wiki/Organization" title="Organization">organizational</a> process is intended to ensure that the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Corporation" title="Corporation">Corporations</a> and public bodies often define processes intended to promote fair and open competition for their business while minimizing risks such as exposure to <a href="/wiki/Fraud" title="Fraud">fraud</a> and <a href="/wiki/Collusion" title="Collusion">collusion</a>. </p><p>Almost all purchasing decisions include factors such as delivery and handling, <a href="/wiki/Marginal_benefit" class="mw-redirect" title="Marginal benefit">marginal benefit</a>, and fluctuations in the prices of goods. Organisations which have adopted a <a href="/wiki/Corporate_social_responsibility" title="Corporate social responsibility">corporate social responsibility</a> perspective are also likely to require their purchasing activity to take wider societal and <a href="/wiki/Business_ethics" title="Business ethics">ethical considerations</a> into account.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> On the other hand, the introduction of external regulations concerning accounting practices can affect ongoing buyer-supplier relations in unforeseen manners.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Overview">Overview</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=1" title="Edit section: Overview"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div><p> The <a href="/wiki/Institute_for_Supply_Management" title="Institute for Supply Management">Institute for Supply Management</a> (ISM) defines procurement as an organizational function that includes <a href="/wiki/Specification_(technical_standard)" title="Specification (technical standard)">specification</a> development, value analysis, supplier market research, negotiation, buying activities, contract administration, <a href="/wiki/Inventory_control" title="Inventory control">inventory control</a>, traffic, receiving and stores. Federal US legislation defines procurement as including<style data-mw-deduplicate="TemplateStyles:r1244412712">.mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 32px}.mw-parser-output .templatequotecite{line-height:1.5em;text-align:left;margin-top:0}@media(min-width:500px){.mw-parser-output .templatequotecite{padding-left:1.6em}}</style></p><blockquote class="templatequote"><p>all stages of the process of acquiring property or services, beginning with the process for determining a need for property or services and ending with contract completion and closeout.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup></p></blockquote><p> A company's procurement function, specifically its spending on suppliers, typically accounts for more than half of the company's total budget.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p><p><a href="/wiki/Purchasing" title="Purchasing">Purchasing</a> is a subset of procurement that specifically deals with the ordering and payment of goods and services. Organizational procurement is also referred to as "organizational buying" or "institutional buying", for example in studies of the buying behaviour of staff involved in purchasing decision-making.<sup id="cite_ref-ww_8-0" class="reference"><a href="#cite_note-ww-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p><p>Procurement activities are also often divided into two distinct categories, direct and indirect spend. Direct spend refers to the production-related procurement that encompasses all items that are part of finished products, such as <a href="/wiki/Raw_material" title="Raw material">raw materials</a>, components and parts. Direct procurement, which is the focus in <a href="/wiki/Supply_chain_management" title="Supply chain management">supply chain management</a>, directly affects the production process of manufacturing firms. In contrast, <a href="/wiki/Indirect_procurement" title="Indirect procurement">indirect procurement</a> concerns non-production-related acquisition: a wide variety of goods and services, from standardized items like office supplies and safety equipment to complex and costly products and services like heavy equipment, consulting services, and <a href="/wiki/Outsourcing" title="Outsourcing">outsourcing</a> services.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> </p> <table class="wikitable" style="width:600px; margin:auto;"> <tbody><tr> <th rowspan="2"> </th> <th>Direct procurement </th> <th colspan="2">Indirect procurement </th></tr> <tr> <th style="width:150px;">Raw material and production goods </th> <th style="width:200px;"><a href="/wiki/Maintenance,_repair,_and_operations" class="mw-redirect" title="Maintenance, repair, and operations">Maintenance, repair, and operating</a> supplies, <a href="/wiki/Outsourcing" title="Outsourcing">outsourcing</a> </th> <th style="width:100px;">Capital goods and services </th></tr> <tr> <th style="width:45px;">Quantity </th> <td style="width:150px;">Large </td> <td style="width:200px;">Low </td> <td style="width:100px;">Low </td></tr> <tr> <th>Value </th> <td style="width:150px;">Industry-specific </td> <td style="width:200px;">Low </td> <td style="width:100px;">High </td></tr> <tr> <th style="width:45px;">Nature </th> <td style="width:150px;">Operational </td> <td style="width:200px;">Tactical </td> <td style="width:100px;">Strategic </td></tr> <tr> <th>Process </th> <td>Scheduled </td> <td>Unscheduled </td> <td>Capital Project </td></tr> <tr> <th style="width:45px;">Examples </th> <td style="width:150px;">Steel, Resin, Rubber </td> <td style="width:200px;">Safety Equipment, spare parts, IT </td> <td style="width:100px;">Warehouses, Vehicles, Oil Wells </td></tr></tbody></table> <div class="mw-heading mw-heading2"><h2 id="History">History</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=2" title="Edit section: History"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The first record of procurement activities dates back to 3,000 BC when the <a href="/wiki/Egyptians" title="Egyptians">Egyptians</a> managed materials and labor for the <a href="/wiki/Pyramid" title="Pyramid">pyramids</a> using <a href="/wiki/Scribe" title="Scribe">scribes</a>. The scribes recorded how much material and how many workers were needed for different tasks.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p><p>Formalized acquisition of goods and services has its roots in <a href="/wiki/Military_logistics" title="Military logistics">military logistics</a>. The Romans developed a system of supply depots that were located throughout their empire. These depots were stocked with food, weapons, and other supplies that could be quickly distributed to troops in the field. This system helped to ensure that the Roman army was always well-supplied, even when it was fighting far from home. <sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p><p>The first record of what would be recognized now as the purchasing department of an industrial operation relates to the <a href="/wiki/Railway_company" class="mw-redirect" title="Railway company">railway companies</a> of the 19th century: </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1244412712"><blockquote class="templatequote"><p>"The intelligence and fidelity exercised in the purchase, care and use of railway supplies influences directly the cost of <a href="/wiki/Construction" title="Construction">construction</a> and operating and affect the reputations of officers and the profits of owners."<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup></p></blockquote> <div class="mw-heading mw-heading2"><h2 id="Sourcing_and_acquisition">Sourcing and acquisition</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=3" title="Edit section: Sourcing and acquisition"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Procurement is one component of the broader concept of sourcing and acquisition. Typically procurement is viewed as more tactical in nature (the process of physically buying a product or service) and sourcing and acquisition are viewed as more strategic and encompassing.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title=""Where does "strategic procurement" fit with this distinction? (May 2024)">citation needed</span></a></i>]</sup> Multiple sourcing business models and acquisition models exist. </p><p>The <a href="/wiki/Institute_for_Supply_Management" title="Institute for Supply Management">Institute for Supply Management</a> (ISM) defines strategic sourcing as the process of identifying sources that could provide needed products or services for the acquiring organization.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (July 2023)">citation needed</span></a></i>]</sup> The term procurement is used to reflect the entire purchasing process or cycle, and not just the tactical components. </p><p><a href="/wiki/Procurement_software" title="Procurement software">Procurement software</a> (often labeled as <a href="/wiki/E-procurement" title="E-procurement">e-procurement</a> software) manages purchasing processes electronically or via <a href="/wiki/Cloud_computing" title="Cloud computing">cloud computing</a>. </p> <div class="mw-heading mw-heading3"><h3 id="Acquisition_processes">Acquisition processes</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=4" title="Edit section: Acquisition processes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some aspects of a procurement process may need to be initiated ahead of the majority of the project, for example where there are extensive <a href="/wiki/Lead_time" title="Lead time">lead times</a>. Such cases may be referred to as "advance procurement".<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> </p><p>Many writers also refer to procurement as a cyclical process, which commences with a definition of business needs and develops a specification, identifies suppliers and adopted appropriate methods for consulting with them, inviting and evaluating proposals, secures on contract and takes delivery of a new asset or accepts performance of a service, manages the ownership of the asset or the delivery of the service and reaches an end-of-life point where the asset becomes due for replacement or the service contract terminates. At this point the cycle would recommence.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> </p><p>The <a href="/wiki/Chartered_Institute_of_Procurement_%26_Supply" title="Chartered Institute of Procurement & Supply">Chartered Institute of Procurement & Supply</a> (CIPS) recommends involvement of procurement staff and skills from an early stage in the cycle, noting that such "early procurement involvement" can have a beneficial impact on the nature and timing of any approach to market, the specification and the sourcing strategy and supplier selection approach adopted.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Decision-making">Decision-making</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=5" title="Edit section: Decision-making"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Procurement decisions fall along a continuum from simple buying transactions to more complex buyer-supplier collaborations,<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2023)">citation needed</span></a></i>]</sup> and the buying behaviour of staff involved in purchasing decision-making has been widely studied.<sup id="cite_ref-ww_8-1" class="reference"><a href="#cite_note-ww-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> There is a consensus among scholars and marketing managers that buyers utilise various decision processes as appropriate to each buying situation, and some purchasing decisions are especially complex.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> Some writers treat purchasing decisions as examples of <a href="/wiki/Rationality" title="Rationality">rational behaviour</a> made in the context of a business aim such as <a href="/wiki/Profit_maximization" title="Profit maximization">profit maximisation</a> and make the assumption that decision-makers have access to the information they need for their decision. Feldman and Cordozo questioned this approach in a 1969 article, suggesting that industrial buyer decision-making had similarities with <a href="/wiki/Buyer_decision_process" title="Buyer decision process">consumer buying</a> behaviour.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> David T. Wilson suggested in a 1971 article that an individual buyer's <a href="/wiki/Personality" title="Personality">personality</a> should be considered in understanding buyers' decision processes.<sup id="cite_ref-wilson_22-0" class="reference"><a href="#cite_note-wilson-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> Three distinct <a href="/wiki/Personality_traits" class="mw-redirect" title="Personality traits">personality traits</a> have been described in the literature on this subject: </p> <ul><li>a trait displaying a high need for certainty</li> <li>a trait reflecting a high degree of generalised self-confidence</li> <li>a need to achieve trait.<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup></li></ul> <p>Wilson found that there was some correlation between personality traits and decision-making styles among the Canadian buyers who participated in his research study.<sup id="cite_ref-wilson_22-1" class="reference"><a href="#cite_note-wilson-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Jagdish_Sheth" title="Jagdish Sheth">Jagdish Sheth</a> published <i>A Model of Industrial Buyer Behaviour</i> in 1983, which drew from a large volume of empirical study of buyer behaviour and emphasised how the "psychological world of the decision-makers" impacted on the processes and outcomes of purchasing decision-making.<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> </p><p>There are wide variations in the involvement of procurement staff in purchasing decisions across types of organisation and across varying purchasing situations. Some purchasing decisions are made by individuals or groups of individuals referred to as a "<a href="/wiki/Buying_center" title="Buying center">buying center</a>" or "decision-making unit", where procurement personnel may in some cases be central, in other cases peripheral, to the purchasing decision. From a marketing perspective, buying center research has looked at which individuals and organisational divisions become part of the decision-making group, how they interact, and the internal and external factors which influence purchasing outcomes. Wesley Johnson and Thomas Bonoma, in a 1981 research paper, found situations where "the purchasing manager's centrality is likely to be high", and equally situations where their centrality "is likely to be low", recommending that "purchasing managers desiring to increase their influence" should aim to play a pivotal role in the internal communications linking the various individuals and organisational divisions involved.<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Sourcing_business_model">Sourcing business model</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=6" title="Edit section: Sourcing business model"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-Unreferenced_section plainlinks metadata ambox ambox-content ambox-Unreferenced" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This section <b>does not <a href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources">cite</a> any <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">sources</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Procurement" title="Special:EditPage/Procurement">improve this section</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and <a href="/wiki/Wikipedia:Verifiability#Burden_of_evidence" title="Wikipedia:Verifiability">removed</a>.</span> <span class="date-container"><i>(<span class="date">April 2023</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p>There are a number of models along the sourcing continuum: basic provider, approved provider, preferred provider, <a href="/wiki/Performance-based_contracting" title="Performance-based contracting">performance-based contracting</a>, <a href="/wiki/Managed_services" title="Managed services">managed services</a> model, <a href="/wiki/Vested" class="mw-redirect" title="Vested">vested</a> business model, <a href="/wiki/Shared_services" title="Shared services">shared services</a> model and equity partnerships.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (April 2023)">citation needed</span></a></i>]</sup> </p> <ul><li>A basic provider model is transaction-based; it usually has a set price for individual products and services for which there are a wide range of standard market options. Typically these products or services are readily available, with little differentiation in what is offered.</li> <li>An approved provider model uses a transaction-based approach where goods and services are purchased from prequalified suppliers that meet certain performance or other selection criteria.</li> <li>The preferred provider model also uses a transaction-based economic model, but a key difference between the preferred provider and the other transaction-based models is that the buyer has chosen to move to a supplier relationship where there is an opportunity for the supplier to add incremental value to the buyer's business to meet strategic objectives.</li> <li>A <a href="/wiki/Performance-based_contracting" title="Performance-based contracting">performance-based</a> (or managed services model) is generally a formal, longer-term supplier agreement that combines a relational contracting model with an output-based economic model. It seeks to drive supplier accountability for output-based service-level agreements (SLAs) and/or <a href="/wiki/Cost_reduction" title="Cost reduction">cost reduction</a> targets.</li> <li>A vested sourcing business model is a hybrid relationship that combines an outcome-based economic model with a relational contracting model. Companies enter into highly collaborative arrangements designed to create and share value for buyers and suppliers above and beyond.</li> <li>A shared services model is typically an internal organization based on an arms-length outsourcing arrangement. Using this approach, processes are often centralized into an SSO that charges business units or users for the services they use.</li> <li>An equity partnership creates a legally binding entity; it can take different legal forms, from buying a supplier (an acquisition), to creating a subsidiary, to equity-sharing joint ventures or entering into cooperative (co-op) arrangements.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2023)">citation needed</span></a></i>]</sup></li></ul> <div class="mw-heading mw-heading2"><h2 id="Specific_types">Specific types</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=7" title="Edit section: Specific types"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Government_procurement">Government procurement</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=8" title="Edit section: Government procurement"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="excerpt-block"><style data-mw-deduplicate="TemplateStyles:r1066933788">.mw-parser-output .excerpt-hat .mw-editsection-like{font-style:normal}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable dablink excerpt-hat selfref">This section is an excerpt from <a href="/wiki/Government_procurement" title="Government procurement">Government procurement</a>.<span class="mw-editsection-like plainlinks"><span class="mw-editsection-bracket">[</span><a class="external text" href="https://en.wikipedia.org/w/index.php?title=Government_procurement&action=edit">edit</a><span class="mw-editsection-bracket">]</span></span></div><div class="excerpt"> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330"><table class="sidebar sidebar-collapse nomobile nowraplinks"><tbody><tr><td class="sidebar-pretitle"><i>Part of <a href="/wiki/Category:Trade" title="Category:Trade">a series</a> on</i></td></tr><tr><th class="sidebar-title-with-pretitle"><a href="/wiki/International_trade" title="International trade">World trade</a></th></tr><tr><td class="sidebar-image" style="padding: 0.4em 0 0.4em; border-bottom: 1px solid #ccc"><figure class="mw-halign-center notpageimage" typeof="mw:File"><a href="/wiki/File:Storck_Harbour_scene.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/c/cf/Storck_Harbour_scene.jpg/180px-Storck_Harbour_scene.jpg" decoding="async" width="180" height="181" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/c/cf/Storck_Harbour_scene.jpg/270px-Storck_Harbour_scene.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/c/cf/Storck_Harbour_scene.jpg/360px-Storck_Harbour_scene.jpg 2x" data-file-width="1590" data-file-height="1599" /></a><figcaption></figcaption></figure></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)"><a href="/wiki/Commercial_policy" title="Commercial policy">Policy</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Import" title="Import">Import</a></li> <li><a href="/wiki/Export" title="Export">Export</a></li> <li><a href="/wiki/Balance_of_trade" title="Balance of trade">Balance of trade</a></li> <li><a href="/wiki/International_trade_law" title="International trade law">Trade law</a></li> <li><a href="/wiki/Trade_agreement" title="Trade agreement">Trade pact</a></li> <li><a href="/wiki/Trade_bloc" title="Trade bloc">Trade bloc</a></li> <li><a href="/wiki/Trade_creation" title="Trade creation">Trade creation</a></li> <li><a href="/wiki/Trade_diversion" title="Trade diversion">Trade diversion</a></li> <li><a href="/wiki/Export-oriented_industrialization" title="Export-oriented industrialization">Export orientation</a></li> <li><a href="/wiki/Import_substitution_industrialization" title="Import substitution industrialization">Import substitution</a></li> <li><a href="/wiki/Trade_finance" title="Trade finance">Trade finance</a></li> <li><a href="/wiki/Trade_facilitation" title="Trade facilitation">Trade facilitation</a></li> <li><a href="/wiki/Trade_route" title="Trade route">Trade route</a></li> <li><a href="/wiki/Domestic_trade" class="mw-redirect" title="Domestic trade">Domestic trade</a></li> <li><a href="/wiki/Tax" title="Tax">Tax</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)"><a href="/wiki/Trade_restriction" title="Trade restriction">Restrictions</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Trade_barrier" title="Trade barrier">Trade barriers</a></li> <li><a href="/wiki/Tariff" title="Tariff">Tariffs</a></li> <li><a href="/wiki/Non-tariff_barriers_to_trade" title="Non-tariff barriers to trade">Non-tariff barriers</a></li> <li><a href="/wiki/Import_quota" title="Import quota">Import quotas</a></li> <li><a href="/wiki/Tariff-rate_quota" title="Tariff-rate quota">Tariff-rate quotas</a></li> <li><a href="/wiki/Import_license" title="Import license">Import licenses</a></li> <li><a href="/wiki/Duty_(economics)" class="mw-redirect" title="Duty (economics)">Customs duties</a></li> <li><a href="/wiki/Export_subsidy" title="Export subsidy">Export subsidies</a></li> <li><a href="/wiki/Technical_barriers_to_trade" title="Technical barriers to trade">Technical barriers</a></li> <li><a href="/wiki/Bribery" title="Bribery">Bribery</a></li> <li><a href="/wiki/Foreign_exchange_controls" title="Foreign exchange controls">Exchange rate controls</a></li> <li><a href="/wiki/Economic_sanctions" title="Economic sanctions">Embargo</a></li> <li><a href="/wiki/Safeguard_(international_law)" class="mw-redirect" title="Safeguard (international law)">Safeguards</a></li> <li><a href="/wiki/Countervailing_duties" title="Countervailing duties">Countervailing duties</a></li> <li><a href="/wiki/Dumping_(pricing_policy)" title="Dumping (pricing policy)">Anti-dumping duties</a></li> <li><a href="/wiki/Voluntary_export_restraint" title="Voluntary export restraint">Voluntary export restraints</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)"><a href="/wiki/Timeline_of_international_trade" title="Timeline of international trade">History</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Mercantilism" title="Mercantilism">Mercantilism</a></li> <li><a href="/wiki/Protectionism" title="Protectionism">Protectionism</a></li> <li><a href="/wiki/Laissez-faire" title="Laissez-faire">Laissez-faire</a></li> <li><a href="/wiki/Free_trade" title="Free trade">Free trade</a></li> <li><a href="/wiki/Economic_nationalism" title="Economic nationalism">Economic nationalism</a></li> <li><a href="/wiki/Economic_integration" title="Economic integration">Economic integration</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)">Organizations</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/International_Monetary_Fund" title="International Monetary Fund">International Monetary Fund</a></li> <li><a href="/wiki/International_Trade_Centre" title="International Trade Centre">International Trade Centre</a></li> <li><a href="/wiki/World_Trade_Organization" title="World Trade Organization">World Trade Organization</a></li> <li><a href="/wiki/World_Customs_Organization" title="World Customs Organization">World Customs Organization</a></li> <li><a href="/wiki/International_Chamber_of_Commerce" title="International Chamber of Commerce">International Chamber of Commerce</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)">Economic integration</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Preferential_trading_area" title="Preferential trading area">Preferential trading area</a></li> <li><a href="/wiki/Free-trade_area" class="mw-redirect" title="Free-trade area">Free-trade area</a></li> <li><a href="/wiki/Currency_union" title="Currency union">Currency union</a></li> <li><a href="/wiki/Customs_union" title="Customs union">Customs union</a></li> <li><a href="/wiki/Single_market" title="Single market">Single market</a></li> <li><a href="/wiki/Economic_union" title="Economic union">Economic union</a></li> <li><a href="/wiki/Fiscal_union" title="Fiscal union">Fiscal union</a></li> <li><a href="/wiki/Customs_and_monetary_union" title="Customs and monetary union">Customs and monetary union</a></li> <li><a href="/wiki/Economic_and_monetary_union" title="Economic and monetary union">Economic and monetary union</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)">Issues</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Intellectual_property" title="Intellectual property">Intellectual property rights</a></li> <li><a href="/wiki/Smuggling" title="Smuggling">Smuggling</a></li> <li><a href="/wiki/Competition_law" title="Competition law">Competition policy</a></li> <li><a href="/wiki/Government_procurement" title="Government procurement">Government procurement</a></li> <li><a href="/wiki/Outsourcing" title="Outsourcing">Outsourcing</a></li> <li><a href="/wiki/Globalization" title="Globalization">Globalization</a></li> <li><a href="/wiki/Fair_trade" title="Fair trade">Fair trade</a></li> <li><a href="/wiki/Trade_justice" title="Trade justice">Trade justice</a></li> <li><a href="/wiki/Emissions_trading" title="Emissions trading">Emissions trading</a></li> <li><a href="/wiki/Economic_sanctions" title="Economic sanctions">Trade sanctions</a></li> <li>War <ul><li><a href="/wiki/Currency_war" title="Currency war">Currency war</a></li> <li><a href="/wiki/Trade_facilitation_and_development" title="Trade facilitation and development">Trade costs</a></li> <li><a href="/wiki/Trade_war" title="Trade war">Trade war</a></li></ul></li> <li><a href="/wiki/Trade_and_development" title="Trade and development">Trade and development</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)"><a href="/wiki/Index_of_international_trade_articles" title="Index of international trade articles">Lists</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/List_of_countries_by_imports" title="List of countries by imports">Imports</a></li> <li><a href="/wiki/List_of_countries_by_exports" title="List of countries by exports">Exports</a></li> <li><a href="/wiki/List_of_tariffs" title="List of tariffs">Tariffs</a></li> <li><a href="/wiki/List_of_largest_consumer_markets" title="List of largest consumer markets">Largest consumer markets</a></li> <li><a href="/wiki/List_of_countries_by_leading_trade_partners" title="List of countries by leading trade partners">Leading trade partners</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)"><a href="/wiki/Category:Foreign_trade_by_country" title="Category:Foreign trade by country">By country</a></div><div class="sidebar-list-content mw-collapsible-content hlist" style="padding-bottom: 0"> <ul><li><a href="/wiki/Trade_mission" title="Trade mission">Trade mission</a></li> <li><a href="/wiki/Trading_nation" title="Trading nation">Trading nation</a></li> <li><a href="/wiki/Foreign_trade_of_the_United_States" title="Foreign trade of the United States">United States</a></li> <li><a href="/wiki/Foreign_trade_of_Argentina" title="Foreign trade of Argentina">Argentina</a></li> <li><a href="/wiki/Foreign_trade_of_Pakistan" title="Foreign trade of Pakistan">Pakistan</a></li> <li><a href="/wiki/Foreign_trade_of_Romania" title="Foreign trade of Romania">Romania</a></li> <li><a href="/wiki/Foreign_trade_of_Vietnam" title="Foreign trade of Vietnam">Vietnam</a></li> <li><a href="/wiki/Foreign_trade_of_India" title="Foreign trade of India">India</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-bottom: 1px solid #ccc; background: transparent; text-align: left;;color: var(--color-base)">Theory</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Comparative_advantage" title="Comparative advantage">Comparative advantage</a></li> <li><a href="/wiki/Competitive_advantage" title="Competitive advantage">Competitive advantage</a></li> <li><a href="/wiki/Heckscher%E2%80%93Ohlin_model" title="Heckscher–Ohlin model">Heckscher–Ohlin model</a></li> <li><a href="/wiki/New_trade_theory" title="New trade theory">New trade theory</a></li> <li><a href="/wiki/Economic_geography" title="Economic geography">Economic geography</a></li> <li><a href="/wiki/Intra-industry_trade" title="Intra-industry trade">Intra-industry trade</a></li> <li><a href="/wiki/Gravity_model_of_trade" title="Gravity model of trade">Gravity model of trade</a></li> <li><a href="/wiki/International_trade#Ricardian_theory_of_international_trade" title="International trade">Ricardian trade theories</a></li> <li><a href="/wiki/Balassa%E2%80%93Samuelson_effect" title="Balassa–Samuelson effect">Balassa–Samuelson effect</a></li> <li><a href="/wiki/Linder_hypothesis" title="Linder hypothesis">Linder hypothesis</a></li> <li><a href="/wiki/Leontief_paradox" title="Leontief paradox">Leontief paradox</a></li> <li><a href="/wiki/Lerner_symmetry_theorem" title="Lerner symmetry theorem">Lerner symmetry theorem</a></li> <li><a href="/wiki/Terms_of_trade" title="Terms of trade">Terms of trade</a></li></ul></div></div></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:World_trade" title="Template:World trade"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:World_trade" title="Template talk:World trade"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:World_trade" title="Special:EditPage/Template:World trade"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><a href="/wiki/Government_procurement" title="Government procurement">Government procurement</a> or public procurement is when a <a href="/wiki/Governing_body" title="Governing body">governing body</a> purchases goods, works, and services from an <a href="/wiki/Organization" title="Organization">organization</a> for themselves or the taxpayers.<sup id="cite_ref-Government_procurement_:32_26-0" class="reference"><a href="#cite_note-Government_procurement_:32-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> In 2019, public procurement accounted for approximately 12% of <a href="/wiki/Gross_domestic_product" title="Gross domestic product">GDP</a> in <a href="/wiki/OECD" title="OECD">OECD</a> countries.<sup id="cite_ref-Government_procurement_:122_29-0" class="reference"><a href="#cite_note-Government_procurement_:122-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> In 2021 the <a href="/wiki/World_Bank_Group" title="World Bank Group">World Bank Group</a> estimated that public procurement made up about 15% of global GDP.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> Therefore, government procurement accounts for a substantial part of the global economy. </p><p>Public procurement is based on the idea that governments should direct their society while giving the private sector the freedom to decide the best practices to produce the desired goods and services.<sup id="cite_ref-Government_procurement_peters2_32-0" class="reference"><a href="#cite_note-Government_procurement_peters2-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: Chapter 1">: Chapter 1 </span></sup> One benefit of public procurement is its ability to cultivate <a href="/wiki/Innovation" title="Innovation">innovation</a> and <a href="/wiki/Economic_growth" title="Economic growth">economic growth</a>.<sup id="cite_ref-Government_procurement_:03_33-0" class="reference"><a href="#cite_note-Government_procurement_:03-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> The public sector picks the most capable nonprofit or for-profit organizations available to issue the desired good or service to the taxpayers. This produces competition within the private sector to gain these contracts that then reward the organizations that can supply more cost-effective and quality goods and services. Some contracts also have specific clauses to promote working with minority-led, women-owned businesses and/or <a href="/wiki/State-owned_enterprise" title="State-owned enterprise">state-owned enterprises</a>.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> </p><p>Competition is a key component of public procurement which affects the outcomes of the whole process.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> There is a great amount of competition over public procurements because of the massive amount of money that flows through these systems; It is estimated that approximately eleven trillion <a href="/wiki/United_States_dollar" title="United States dollar">USD</a> is spent on public procurement worldwide every year.<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup> </p> To prevent <a href="/wiki/Fraud" title="Fraud">fraud</a>, <a href="/wiki/Waste" title="Waste">waste</a>, <a href="/wiki/Political_corruption" title="Political corruption">corruption</a>, or local <a href="/wiki/Protectionism" title="Protectionism">protectionism</a>, the laws of most countries regulate government procurement to some extent. Laws usually require the procuring authority to issue public <a href="/wiki/Call_for_bids" class="mw-redirect" title="Call for bids">tenders</a> if the value of the procurement exceeds a certain threshold. Government procurement is also the subject of the <a href="/wiki/Agreement_on_Government_Procurement" title="Agreement on Government Procurement">Agreement on Government Procurement</a> (GPA), a <a href="/wiki/Plurilateral" class="mw-redirect" title="Plurilateral">plurilateral</a> international treaty under the auspices of the <a href="/wiki/WTO" class="mw-redirect" title="WTO">WTO</a>.</div></div> <div class="mw-heading mw-heading3"><h3 id="Sustainable_or_green_procurement">Sustainable or green procurement</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=9" title="Edit section: Sustainable or green procurement"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="excerpt-block"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable dablink excerpt-hat selfref">This section is an excerpt from <a href="/wiki/Sustainable_procurement" title="Sustainable procurement">Sustainable procurement</a>.<span class="mw-editsection-like plainlinks"><span class="mw-editsection-bracket">[</span><a class="external text" href="https://en.wikipedia.org/w/index.php?title=Sustainable_procurement&action=edit">edit</a><span class="mw-editsection-bracket">]</span></span></div><div class="excerpt"> <p><a href="/wiki/Sustainable_procurement" title="Sustainable procurement">Sustainable procurement</a> or green procurement is a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a life-cycle basis while addressing equity principles for sustainable development, therefore benefiting societies and the environment across time and geographies.<sup id="cite_ref-Sustainable_procurement_chathamhouse.org_39-0" class="reference"><a href="#cite_note-Sustainable_procurement_chathamhouse.org-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup> Procurement is often conducted via a <a href="/wiki/Tendering" class="mw-redirect" title="Tendering">tendering</a> or competitive <a href="/wiki/Bidding" title="Bidding">bidding</a> process. The process is used to ensure the buyer receives goods, services or works for the best possible price, when aspects such as quality, quantity, time, and location are compared.<sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup> Procurement is considered sustainable when organizations broadens this framework by meeting their needs for goods, services, works, and utilities in a way that achieves value for money and promotes positive outcomes not only for the organization itself but for the economy, environment, and society.<sup id="cite_ref-Sustainable_procurement_auto_41-0" class="reference"><a href="#cite_note-Sustainable_procurement_auto-41"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup> </p> Sustainable procurement is a spending and investment process typically associated with <a href="/wiki/Public_policy" title="Public policy">public policy</a>, although it is equally applicable to the <a href="/wiki/Private_sector" title="Private sector">private sector</a>. Organizations practicing sustainable procurement meet their needs for goods, services, utilities and works not only on a private <a href="/wiki/Cost%E2%80%93benefit_analysis" title="Cost–benefit analysis">cost–benefit analysis</a>, but also with the intention to maximizing net benefits for themselves and the wider world. In doing so they must incorporate extrinsic cost considerations into decisions alongside the conventional procurement criteria of price and quality, although in practice the sustainable impacts of a potential supplier's approach are often assessed as a form of quality consideration.</div></div> <div class="mw-heading mw-heading3"><h3 id="Electronic_procurement">Electronic procurement</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=10" title="Edit section: Electronic procurement"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/E-procurement" title="E-procurement">E-procurement</a></div> <p><a href="/wiki/Electronic_procurement" class="mw-redirect" title="Electronic procurement">Electronic procurement</a> is the purchasing of goods by businesses through the internet or other networked computer connection.<sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Electronic_data_interchange" title="Electronic data interchange">Electronic data interchange</a> (EDI) was a forerunner to electronic procurement, this consisted of standardized transmission of data such as inventories and good required electronically. Schoenherr argues that EDI developed from standardized manifests for deliveries to Berlin during the <a href="/wiki/Berlin_Airlift" class="mw-redirect" title="Berlin Airlift">Berlin Airlift</a> which were applied by <a href="/wiki/DuPont" title="DuPont">DuPont</a> in the 1960s and argues that <a href="/wiki/Material_requirements_planning" title="Material requirements planning">Material requirements planning</a> and <a href="/wiki/Enterprise_resource_planning" title="Enterprise resource planning">Enterprise resource planning</a> were both forerunners to electronic procurement.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>43<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 35">: 35 </span></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Joint_procurement">Joint procurement</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=11" title="Edit section: Joint procurement"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Joint_venture" title="Joint venture">Joint venture</a></div> <p>Joint procurement takes place when two or more organisations share purchasing activities, and therefore has a more specifically buyer-side focus than many examples of collaborative buyer-seller relationships. Companies may decide to work together for the following reasons:<sup id="cite_ref-kamann_44-0" class="reference"><a href="#cite_note-kamann-44"><span class="cite-bracket">[</span>44<span class="cite-bracket">]</span></a></sup> </p> <ul><li><a href="/wiki/Transaction_cost_economics" class="mw-redirect" title="Transaction cost economics">transaction cost economics</a> approach, where the total transaction costs of the actors involved are lower when they work together</li> <li><a href="/wiki/Resource_dependence_theory" title="Resource dependence theory">resource dependence</a> approach, and the <a href="/wiki/Resource_based_view" class="mw-redirect" title="Resource based view">resource based view</a>, where the group of actors is able to <i>create</i> a resource, <a href="/wiki/Market_power" title="Market power">market power</a>, which they would be unable to exercise independently</li> <li><a href="/wiki/Neo-classical_economics" class="mw-redirect" title="Neo-classical economics">neo-classical economics</a>' case, arguing that certain functions become separate, specialised units in order to obtain <a href="/wiki/Economies_of_scale" title="Economies of scale">scale</a> effects</li> <li><a href="/wiki/Neo-institutionalism" class="mw-redirect" title="Neo-institutionalism">neo-institutionalism</a> - the argument that actors work together because it is <i>the</i> thing to do these days.</li></ul> <p>Joint or collaborative procurement is a common practice within <a href="/wiki/Government_procurement" title="Government procurement">public sector procurement</a>. There are central purchasing bodies in many countries which coordinate joint purchasing activities for public sector organisations. A report commissioned by the <a href="/wiki/European_Parliament" title="European Parliament">European Parliament</a>'s <a href="/wiki/Committee_on_the_Internal_Market_and_Consumer_Protection" class="mw-redirect" title="Committee on the Internal Market and Consumer Protection">Committee on the Internal Market and Consumer Protection</a> (IMCO) has recommended that EU <a href="/wiki/Member_state_of_the_European_Union" title="Member state of the European Union">Member States</a> "should consider creating Central Purchasing Bodies (CPBs)" in order to secure "coherent and coordinated procurement".<sup id="cite_ref-45" class="reference"><a href="#cite_note-45"><span class="cite-bracket">[</span>45<span class="cite-bracket">]</span></a></sup> </p><p>On a trans-national scale, <a href="/wiki/Guyana" title="Guyana">Guyana</a>, <a href="/wiki/Barbados" title="Barbados">Barbados</a> and <a href="/wiki/Rwanda" title="Rwanda">Rwanda</a> announced "a programme of mutual support for the local manufacturing of vaccines and medicines" in July 2023 for which a "pooled procurement mechanism" would be required.<sup id="cite_ref-46" class="reference"><a href="#cite_note-46"><span class="cite-bracket">[</span>46<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Other_types">Other types</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=12" title="Edit section: Other types"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Best_value_procurement" title="Best value procurement">Best value procurement</a> – Procurement method that looks at many factors</li> <li><a href="/wiki/Syndicated_procurement" title="Syndicated procurement">Syndicated procurement</a> – Procurement method where concurrent orders are grouped together</li></ul> <div class="mw-heading mw-heading2"><h2 id="Measuring_performance">Measuring performance</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=13" title="Edit section: Measuring performance"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The <a href="/wiki/Chartered_Institute_of_Procurement_%26_Supply" title="Chartered Institute of Procurement & Supply">Chartered Institute of Procurement & Supply</a> (CIPS) promotes a model of "five rights", which it suggests are "a traditional formula expressing the basic objectives of procurement and the general criteria by which procurement performance is measured", namely that goods and services purchased should be of the 'right quality', in the 'right quantity', delivered to the 'right place' at the 'right time' and obtained at the 'right price'.<sup id="cite_ref-47" class="reference"><a href="#cite_note-47"><span class="cite-bracket">[</span>47<span class="cite-bracket">]</span></a></sup> CIPS has in the past also offered an alternative listing of the five rights as "buy[ing] goods or services of the right quality, in the right quantity, from the right source, at the right time and at the right price.<sup id="cite_ref-48" class="reference"><a href="#cite_note-48"><span class="cite-bracket">[</span>48<span class="cite-bracket">]</span></a></sup> 'Right source' is added as a sixth right in CIPS' 2018 publication, <i>Contract Administration</i>.<sup id="cite_ref-49" class="reference"><a href="#cite_note-49"><span class="cite-bracket">[</span>49<span class="cite-bracket">]</span></a></sup> </p><p>Delivery on savings goals is an important part of the procurement function, but this objective is generally seen as value generation rather than cost reduction.<sup id="cite_ref-50" class="reference"><a href="#cite_note-50"><span class="cite-bracket">[</span>50<span class="cite-bracket">]</span></a></sup> CIPS also notes that securing savings is "one measure of purchasing performance", but argues that savings should only be used as a measure of performance where they are "a reflection of the [organisation]'s ... expectations of the purchasing and supply management function". CIPS distinguishes between "savings", which can reduce budgets, and "cost avoidance", which "attempts to thwart price increases and to keep within budget".<sup id="cite_ref-pop_51-0" class="reference"><a href="#cite_note-pop-51"><span class="cite-bracket">[</span>51<span class="cite-bracket">]</span></a></sup> Examples of savings as a beneficial outcome include: </p> <ul><li>agreeing a reduction in price, obtaining the same item for less cost</li> <li>sourcing, or developing a supply of, a lower quality item at a reduced cost, where the item is still fit for purpose</li> <li>obtaining <a href="/wiki/Added_value" title="Added value">added value</a> for the same cost, e.g. negotiating <a href="/wiki/Extended_warranty" title="Extended warranty">extended warranties</a>, additional <a href="/wiki/Spare_part" title="Spare part">spare parts</a> etc.<sup id="cite_ref-pop_51-1" class="reference"><a href="#cite_note-pop-51"><span class="cite-bracket">[</span>51<span class="cite-bracket">]</span></a></sup></li></ul> <p>Ardent Partners published a report in 2011 which presented a comprehensive, industry-wide view into what was happening in the world of procurement at that time by drawing on the experience, performance, and perspective of nearly 250 <a href="/wiki/Chief_procurement_officer" title="Chief procurement officer">chief procurement officers</a> (CPOs) and other procurement executives. The report included the main procurement performance and operational benchmarks that procurement leaders use to gauge the success of their organizations. This report found that the average procurement department manages 60.6% of total enterprise spend. This measure, commonly called "spend under management" or "managed spend", refers to the percentage of total enterprise spend (which includes all direct and indirect spend) that a procurement organization manages or influences. Alternatively, the term may refer to the percentage of addressable spend which is influenced by procurement, "addressable spend" being the expenditure which could potentially be influenced.<sup id="cite_ref-52" class="reference"><a href="#cite_note-52"><span class="cite-bracket">[</span>52<span class="cite-bracket">]</span></a></sup> The average procurement department also achieved an annual saving of 6.7% in the last reporting cycle, sourced 52.6% of its addressable spend, and has a contract compliance rate of 62.6%.<sup id="cite_ref-53" class="reference"><a href="#cite_note-53"><span class="cite-bracket">[</span>53<span class="cite-bracket">]</span></a></sup> A more restrictive definition of "spend under management" includes only expenditure which makes use of preferred supplier contracts and negotiated payment rates and terms.<sup id="cite_ref-54" class="reference"><a href="#cite_note-54"><span class="cite-bracket">[</span>54<span class="cite-bracket">]</span></a></sup> </p><p>Consultants <a href="/wiki/A.T._Kearney" class="mw-redirect" title="A.T. Kearney">A.T. Kearney</a> have developed a model for assessing the performance of a procurement organisation or the procurement function within a wider organisation, known as ROSMA<sup><a href="/wiki/Service_mark_symbol" title="Service mark symbol">SM</a></sup> (Return on Supply Management Assets).<sup id="cite_ref-55" class="reference"><a href="#cite_note-55"><span class="cite-bracket">[</span>55<span class="cite-bracket">]</span></a></sup> According to the 2016 ROSMA Performance Check Report, <i>What Good Looks Like</i>, </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1244412712"><blockquote class="templatequote"><p>the procurement profession has a top-tier group of standout performers, a middle-tier that is delivering value, but performing well below the top tier, and a large group of bottom-quartile performers that add limited value to their organizations.<sup id="cite_ref-cipsr_56-0" class="reference"><a href="#cite_note-cipsr-56"><span class="cite-bracket">[</span>56<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-kearney_57-0" class="reference"><a href="#cite_note-kearney-57"><span class="cite-bracket">[</span>57<span class="cite-bracket">]</span></a></sup></p></blockquote> <p>CIPS promotes organisational <a href="/wiki/Self-assessment" title="Self-assessment">self-assessment</a> using the ROSMA Performance Check, arguing that it enables a procurement department to "measure and explain procurement and supply's value in terms your <a href="/wiki/Chief_financial_officer" title="Chief financial officer">CFO</a> and <a href="/wiki/CEO" class="mw-redirect" title="CEO">CEO</a> will understand, using a common financial standard".<sup id="cite_ref-cipsr_56-1" class="reference"><a href="#cite_note-cipsr-56"><span class="cite-bracket">[</span>56<span class="cite-bracket">]</span></a></sup> Findings in 2020 suggested that "top <a href="/wiki/Quartile" title="Quartile">quartile</a> procurement performers have ROSMA scores two to three times higher than those in the middle two quartiles".<sup id="cite_ref-58" class="reference"><a href="#cite_note-58"><span class="cite-bracket">[</span>58<span class="cite-bracket">]</span></a></sup> A.T. Kearney's report suggests a close match between the self-reported performance of CPOs in the best performing departments and the view of procurement held by the CFO and the organisation more widely, and also notes that weaker performers or "inconsequentials" share a distinct profile marked by lack of "identifiable leadership accountable for procurement's performance.<sup id="cite_ref-kearney_57-1" class="reference"><a href="#cite_note-kearney-57"><span class="cite-bracket">[</span>57<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: page 5">: page 5 </span></sup> </p><p>Spend under management also contributes to an additional measure of procurement performance or procurement efficiency: procurement operating expense as a percentage of managed spend.<sup id="cite_ref-59" class="reference"><a href="#cite_note-59"><span class="cite-bracket">[</span>59<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Personnel_and_roles">Personnel and roles<span class="anchor" id="Roles_in_procurement"></span></h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=14" title="Edit section: Personnel and roles"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">"Buyer" and "Purchasing agent" redirect here. For other uses, see <a href="/wiki/Buyer_(disambiguation)" class="mw-disambig" title="Buyer (disambiguation)">Buyer (disambiguation)</a>.</div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">"Buyers" redirects here. For other uses, see <a href="/wiki/Buyers_(disambiguation)" class="mw-disambig" title="Buyers (disambiguation)">Buyers (disambiguation)</a>.</div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Fashion_buyer" class="mw-redirect" title="Fashion buyer">Fashion buyer</a>, <a href="/wiki/Construction_buyer" title="Construction buyer">Construction buyer</a>, and <a href="/wiki/Broker" title="Broker">Broker</a></div> <p>Personnel who undertake procurement on behalf of an organization may be referred to as procurement officers, professionals or specialists, buyers or supply managers.<sup id="cite_ref-60" class="reference"><a href="#cite_note-60"><span class="cite-bracket">[</span>60<span class="cite-bracket">]</span></a></sup> The US <a href="/wiki/Federal_Acquisition_Regulation" title="Federal Acquisition Regulation">Federal Acquisition Regulation</a> refers to <a href="/wiki/Contracting_Officer" title="Contracting Officer">Contracting Officers</a>.<sup id="cite_ref-61" class="reference"><a href="#cite_note-61"><span class="cite-bracket">[</span>61<span class="cite-bracket">]</span></a></sup> Staff in managerial positions may be referred to as Purchasing Managers or Procurement Managers. The ISM refers to "the supply profession".<sup id="cite_ref-62" class="reference"><a href="#cite_note-62"><span class="cite-bracket">[</span>62<span class="cite-bracket">]</span></a></sup> </p><p>A Purchasing or Procurement Manager's responsibilities may include: </p> <ul><li>approving orders</li> <li>seeking reliable <a href="/wiki/Vendor_(supply_chain)" class="mw-redirect" title="Vendor (supply chain)">vendors</a> or suppliers to provide quality goods at reasonable prices</li> <li><a href="/wiki/Negotiation" title="Negotiation">negotiating</a> prices and contracts</li> <li>reviewing technical specifications for raw materials, components, equipment or buildings</li> <li>determining and monitoring quantity and timing of deliveries (more commonly in small companies)</li> <li><a href="/wiki/Forecasting" title="Forecasting">forecasting</a> upcoming demand</li> <li>supervision of other procurement staff and agents.</li></ul> <p><a href="/wiki/Category_management_(purchasing)" title="Category management (purchasing)">Category management</a> represents a system of organising the roles of staff within a procurement team "in such a way as to focus ... on the [external] supply markets of an organisation", rather than being organised according to the organisation's internal departmental structure.<sup id="cite_ref-63" class="reference"><a href="#cite_note-63"><span class="cite-bracket">[</span>63<span class="cite-bracket">]</span></a></sup> </p><p>Specialist procurement roles include <a href="/wiki/Construction_buyer" title="Construction buyer">construction buyers</a> and travel buyers.<sup id="cite_ref-travel_64-0" class="reference"><a href="#cite_note-travel-64"><span class="cite-bracket">[</span>64<span class="cite-bracket">]</span></a></sup> Part of the work of a corporate travel buyer is the formulation and implementation of a corporate travel policy.<sup id="cite_ref-travel_64-1" class="reference"><a href="#cite_note-travel-64"><span class="cite-bracket">[</span>64<span class="cite-bracket">]</span></a></sup> </p><p>In many larger organizations the procurement and supply function is led by a board-level or other senior position such as a Director of Supply Chain <sup id="cite_ref-65" class="reference"><a href="#cite_note-65"><span class="cite-bracket">[</span>65<span class="cite-bracket">]</span></a></sup> or a <a href="/wiki/Chief_procurement_officer" title="Chief procurement officer">chief procurement officer</a> (CPO). In other cases, procurement is overseen by the <a href="/wiki/Chief_financial_officer" title="Chief financial officer">chief financial officer</a> (CFO) or Director of Finance, or the growing need for liaison between the CFO and the procurement function has been recognised. A 2006 report by the <a href="/wiki/National_Audit_Office_(United_Kingdom)" title="National Audit Office (United Kingdom)">National Audit Office</a> in the UK commented that in the <a href="/wiki/Further_education" title="Further education">further education</a> sector, where procurement practice was not well developed and college organisations were relatively small, oversight of procurement by the Director of Finance was a typical arrangement.<sup id="cite_ref-66" class="reference"><a href="#cite_note-66"><span class="cite-bracket">[</span>66<span class="cite-bracket">]</span></a></sup> </p><p>Independent or third party personnel who undertake procurement or negotiate purchases on behalf of an organization may be called purchasing agents or <a href="/wiki/Buying_agent" title="Buying agent">buying agents</a>, although the term "purchasing agent" has a longer and broader history: the <a href="/wiki/Institute_for_Supply_Management" title="Institute for Supply Management">Institute for Supply Management</a> in the United States was originally called the National Association of Purchasing Agents from its formation in 1915.<sup id="cite_ref-67" class="reference"><a href="#cite_note-67"><span class="cite-bracket">[</span>67<span class="cite-bracket">]</span></a></sup> A <a href="/wiki/Commercial_agent" class="mw-redirect" title="Commercial agent">commercial agent</a> may both purchase and sell on behalf of a third party.<sup id="cite_ref-68" class="reference"><a href="#cite_note-68"><span class="cite-bracket">[</span>68<span class="cite-bracket">]</span></a></sup> </p><p>US <a href="/wiki/Bureau_of_Labor_Statistics" title="Bureau of Labor Statistics">Bureau of Labor Statistics</a> research found that there were 526,200 purchasing manager, buyer and purchasing agent positions in the United States in 2019.<sup id="cite_ref-69" class="reference"><a href="#cite_note-69"><span class="cite-bracket">[</span>69<span class="cite-bracket">]</span></a></sup> Various writers have noted that businesses may reduce the numbers of purchasing staff during a recession along with staff in other business areas, despite a tendency to become more dependent on bought-in goods and services as operations contract. For example, US business executive Steve Collins observed that in one major company the purchasing staffbase "was downsized some 30% during the [2010] <a href="/wiki/Great_Recession_in_the_United_States" title="Great Recession in the United States">recession</a>, 'but the expectations for the remaining employees remained unchanged ... The additional workload placed on the remaining employees following the downsizing created a much more challenging environment<span style="padding-right:.15em;">'</span>".<sup id="cite_ref-70" class="reference"><a href="#cite_note-70"><span class="cite-bracket">[</span>70<span class="cite-bracket">]</span></a></sup> In 2021 the Australasian Procurement and Construction Council (APCC) put forward an appeal asking everyone working in the procurement profession in <a href="/wiki/Australia" title="Australia">Australia</a> to include the term in their <a href="/wiki/Job_title" class="mw-redirect" title="Job title">occupational title</a> when completing their August 2021 <a href="/wiki/2021_Australian_census" title="2021 Australian census">census</a> return.<sup id="cite_ref-71" class="reference"><a href="#cite_note-71"><span class="cite-bracket">[</span>71<span class="cite-bracket">]</span></a></sup> </p><p>The <a href="/wiki/European_Commission" title="European Commission">European Commission</a> issued a recommendation in October 2017 directed towards the "professionalisation of public procurement" so that <a href="/wiki/Member_state_of_the_European_Union" title="Member state of the European Union">Member States</a> could "attract, develop and retain" staff in public purchasing roles, focus on performance and "make the most out of the available tools and techniques".<sup id="cite_ref-72" class="reference"><a href="#cite_note-72"><span class="cite-bracket">[</span>72<span class="cite-bracket">]</span></a></sup> Research undertaken in 2020 highlighted the importance of social or <a href="/wiki/Soft_skills" title="Soft skills">"soft" skills</a> within the skill sets of professional procurement staff.<sup id="cite_ref-73" class="reference"><a href="#cite_note-73"><span class="cite-bracket">[</span>73<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Participation_of_women">Participation of women</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=15" title="Edit section: Participation of women"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some writers have observed that there is limited opportunity for women to enter procurement because of stereotypes viewing some roles as not appropriate for women.<sup id="cite_ref-74" class="reference"><a href="#cite_note-74"><span class="cite-bracket">[</span>74<span class="cite-bracket">]</span></a></sup> </p><p>Management consultant <a href="/wiki/Oliver_Wyman" title="Oliver Wyman">Oliver Wyman</a> reported in 2019 that, based on a survey of over 300 CPOs in Europe, US, and Asia working across 14 industries, 38% of the staff in the procurement organizations surveyed were women: 60% of CPOs stated that there were more women in their organization than three years previously, while 6% said that the number of women had decreased. The effect of this growing involvement of women in procurement was recognised in the form of "more creativity and innovation", acknowledged by 76% of the CPO's surveyed.<sup id="cite_ref-75" class="reference"><a href="#cite_note-75"><span class="cite-bracket">[</span>75<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Legal_aspects">Legal aspects</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=16" title="Edit section: Legal aspects"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A <a href="/wiki/Contract" title="Contract">contractual</a> obligation to procure refers to an absolute obligation to ensure that the action is done or the condition is met,<sup id="cite_ref-76" class="reference"><a href="#cite_note-76"><span class="cite-bracket">[</span>76<span class="cite-bracket">]</span></a></sup> for example a contract with a principal supplier may include a clause requiring the company to "procure" that its <a href="/wiki/Subsidiaries" class="mw-redirect" title="Subsidiaries">subsidiaries</a>, <a href="/wiki/Holding_companies" class="mw-redirect" title="Holding companies">holding companies</a> and other associated businesses undertake the same commitments as those contractually imposed on the principal.<sup id="cite_ref-77" class="reference"><a href="#cite_note-77"><span class="cite-bracket">[</span>77<span class="cite-bracket">]</span></a></sup> </p><p>The use of the word "procure" in a <a href="/wiki/Joint_venture" title="Joint venture">joint venture</a> agreement between Nearfield Ltd., Lincoln Nominees Ltd., and other partners, in relation to the utilisation of a bank loan, gave rise to a dispute between the parties regarding the meaning of the word "procure", which was resolved in 2006 by the judge, <a href="/wiki/Peter_Smith_(judge)" title="Peter Smith (judge)">Peter Smith</a>, confirming that the "normal meaning of the word" is clear and well understood:"I do not see that procure means anything other than as Nearfield [the claimant] puts it 'see to it'".<sup id="cite_ref-78" class="reference"><a href="#cite_note-78"><span class="cite-bracket">[</span>78<span class="cite-bracket">]</span></a></sup> In this case, the obligation to "procure the payment" of the loan amounted to a <a href="/wiki/Guarantee" title="Guarantee">guarantee</a> of that loan.<sup id="cite_ref-79" class="reference"><a href="#cite_note-79"><span class="cite-bracket">[</span>79<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Future_scenarios">Future scenarios</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=17" title="Edit section: Future scenarios"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Various commentators have made projections regarding the future of procurement.<sup id="cite_ref-future_80-0" class="reference"><a href="#cite_note-future-80"><span class="cite-bracket">[</span>80<span class="cite-bracket">]</span></a></sup> Charlotte Payne, general manager of CIPS in Australia and New Zealand, suggests that "procurement's role in sustainability is going to be massive", while a CIPS general overview anticipates that "there is little chance that procurement and supply will enter a period of calm any time soon".<sup id="cite_ref-future_80-1" class="reference"><a href="#cite_note-future-80"><span class="cite-bracket">[</span>80<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=18" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Bidder_conferences" title="Bidder conferences">Bidder conferences</a></li> <li><a href="/wiki/Global_sourcing" title="Global sourcing">Global sourcing</a></li> <li><a href="/wiki/Group_purchasing_organization" title="Group purchasing organization">Group purchasing organization</a></li> <li><a href="/wiki/Procurement_outsourcing" title="Procurement outsourcing">Procurement outsourcing</a></li> <li><a href="/wiki/Performance_Based_Contracting" class="mw-redirect" title="Performance Based Contracting">Performance Based Contracting</a></li> <li><a href="/wiki/Strategic_sourcing" title="Strategic sourcing">Strategic sourcing</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=19" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFLaffontTirole1993" class="citation book cs1">Laffont, Jean-Jacques; Tirole, Jean (1993). <span class="id-lock-registration" title="Free registration required"><a rel="nofollow" class="external text" href="https://archive.org/details/theoryo_laf_1993_00_9636"><i>A Theory of Incentives in Procurement and Regulation</i></a></span>. MIT Press. p. <a rel="nofollow" class="external text" href="https://archive.org/details/theoryo_laf_1993_00_9636/page/1">1</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/9780262121743" title="Special:BookSources/9780262121743"><bdi>9780262121743</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=A+Theory+of+Incentives+in+Procurement+and+Regulation&rft.pages=1&rft.pub=MIT+Press&rft.date=1993&rft.isbn=9780262121743&rft.aulast=Laffont&rft.aufirst=Jean-Jacques&rft.au=Tirole%2C+Jean&rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Ftheoryo_laf_1993_00_9636&rfr_id=info%3Asid%2Fen.wikipedia.org%3AProcurement" class="Z3988"></span></span> </li> <li id="cite_note-:32-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-:32_2-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.oecd.org/gov/public-procurement/">"Public procurement - OECD"</a>. <i>www.oecd.org</i><span class="reference-accessdate">. Retrieved <span class="nowrap">22 April</span> 2022</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.oecd.org&rft.atitle=Public+procurement+-+OECD&rft_id=https%3A%2F%2Fwww.oecd.org%2Fgov%2Fpublic-procurement%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AProcurement" class="Z3988"></span></span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFWeele2010" class="citation book cs1">Weele, Arjan J. van (2010). <i>Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice</i> (5th ed.). Andover: Cengage Learning. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-1-4080-1896-5" title="Special:BookSources/978-1-4080-1896-5"><bdi>978-1-4080-1896-5</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Purchasing+and+Supply+Chain+Management%3A+Analysis%2C+Strategy%2C+Planning+and+Practice&rft.place=Andover&rft.edition=5th&rft.pub=Cengage+Learning&rft.date=2010&rft.isbn=978-1-4080-1896-5&rft.aulast=Weele&rft.aufirst=Arjan+J.+van&rfr_id=info%3Asid%2Fen.wikipedia.org%3AProcurement" class="Z3988"></span></span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">Salam, M. A. (2007), <a rel="nofollow" class="external text" href="https://econpapers.repec.org/article/idsijpman/v_3a1_3ay_3a2007_3ai_3a1_2f2_3ap_3a97-116.htm">Social responsibility in purchasing: the case of Thailand</a>, <i>International Journal of Procurement Management</i>, vol. 1, issue 1/2, 97-116, accessed 27 January 2021. Salam refers to CSR in a purchasing context as "purchasing social responsibility" (PSR).</span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFGuSandersVenkateswaran2017" class="citation journal cs1">Gu, Tiantian; Sanders, Nada R.; Venkateswaran, Anand (2017). <a rel="nofollow" class="external text" href="https://onlinelibrary.wiley.com/doi/abs/10.1111/poms.12715">"CEO Incentives and Customer-Supplier Relations"</a>. <i>Production and Operations Management</i>. <b>26</b> (9): 1705–1727. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1111%2Fpoms.12715">10.1111/poms.12715</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/1937-5956">1937-5956</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Production+and+Operations+Management&rft.atitle=CEO+Incentives+and+Customer-Supplier+Relations&rft.volume=26&rft.issue=9&rft.pages=1705-1727&rft.date=2017&rft_id=info%3Adoi%2F10.1111%2Fpoms.12715&rft.issn=1937-5956&rft.aulast=Gu&rft.aufirst=Tiantian&rft.au=Sanders%2C+Nada+R.&rft.au=Venkateswaran%2C+Anand&rft_id=https%3A%2F%2Fonlinelibrary.wiley.com%2Fdoi%2Fabs%2F10.1111%2Fpoms.12715&rfr_id=info%3Asid%2Fen.wikipedia.org%3AProcurement" class="Z3988"></span></span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.govinfo.gov/content/pkg/PLAW-111publ350/pdf/PLAW-111publ350.pdf">Public Law 111–350: An Act to enact certain laws relating to public contracts as title 41, United States Code, <i>Public Contracts</i></a>, section 111, 4 January 2011, accessed 28 September 2023</span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation book cs1"><i>Profit from the Source</i>. Harvard Business Review Press. 2022. p. 3. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-1-64782-139-5" title="Special:BookSources/978-1-64782-139-5"><bdi>978-1-64782-139-5</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Profit+from+the+Source&rft.pages=3&rft.pub=Harvard+Business+Review+Press&rft.date=2022&rft.isbn=978-1-64782-139-5&rfr_id=info%3Asid%2Fen.wikipedia.org%3AProcurement" class="Z3988"></span></span> </li> <li id="cite_note-ww-8"><span class="mw-cite-backlink">^ <a href="#cite_ref-ww_8-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-ww_8-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">Webster, F. 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for procurement and supply?</a>, published on 26 October 2023, accessed on 22 June 2024</span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Procurement&action=edit&section=20" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1235681985">.mw-parser-output .side-box{margin:4px 0;box-sizing:border-box;border:1px solid #aaa;font-size:88%;line-height:1.25em;background-color:var(--background-color-interactive-subtle,#f8f9fa);display:flow-root}.mw-parser-output .side-box-abovebelow,.mw-parser-output .side-box-text{padding:0.25em 0.9em}.mw-parser-output .side-box-image{padding:2px 0 2px 0.9em;text-align:center}.mw-parser-output .side-box-imageright{padding:2px 0.9em 2px 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rel="nofollow" class="external text" href="https://www.fpds.gov/fpdsng_cms/">Federal Procurement Data System</a> (United States)</li> <li><a rel="nofollow" class="external text" href="http://ec.europa.eu/environment/gpp/index_en.htm">Green public procurement</a> (European Commission)</li> <li><a rel="nofollow" class="external text" href="https://private.disabilityin.org/procurementtoolkit/">Disability:INclusive Workplaces – Accessible Technology Procurement Toolkit</a></li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output .navbox{box-sizing:border-box;border:1px solid #a2a9b1;width:100%;clear:both;font-size:88%;text-align:center;padding:1px;margin:1em auto 0}.mw-parser-output .navbox .navbox{margin-top:0}.mw-parser-output .navbox+.navbox,.mw-parser-output .navbox+.navbox-styles+.navbox{margin-top:-1px}.mw-parser-output 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.navbox-subgroup .navbox-abovebelow{background-color:#e6e6ff}.mw-parser-output .navbox-even{background-color:#f7f7f7}.mw-parser-output .navbox-odd{background-color:transparent}.mw-parser-output .navbox .hlist td dl,.mw-parser-output .navbox .hlist td ol,.mw-parser-output .navbox .hlist td ul,.mw-parser-output .navbox td.hlist dl,.mw-parser-output .navbox td.hlist ol,.mw-parser-output .navbox td.hlist ul{padding:0.125em 0}.mw-parser-output .navbox .navbar{display:block;font-size:100%}.mw-parser-output .navbox-title .navbar{float:left;text-align:left;margin-right:0.5em}body.skin--responsive .mw-parser-output .navbox-image img{max-width:none!important}@media print{body.ns-0 .mw-parser-output .navbox{display:none!important}}</style></div><div role="navigation" class="navbox" aria-labelledby="Procurement_requests" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Procurement_requests" title="Template:Procurement requests"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Procurement_requests" title="Template talk:Procurement requests"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Procurement_requests" title="Special:EditPage/Template:Procurement requests"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Procurement_requests" style="font-size:114%;margin:0 4em"><a class="mw-selflink selflink">Procurement</a> requests</div></th></tr><tr><td colspan="2" class="navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Request_for_information" title="Request for information">Request for information</a></li> <li><a href="/wiki/Request_for_quotation" title="Request for quotation">Request for quotation</a></li> <li><a href="/wiki/Request_for_proposal" title="Request for proposal">Request for proposal</a></li> <li><a href="/wiki/Request_for_tender" class="mw-redirect" title="Request for tender">Request for tender</a></li> <li><a href="/wiki/Request_for_solution" title="Request for solution">Request for solution</a></li> <li><a href="/wiki/Request_for_association" title="Request for association">Request for association</a></li> <li><a href="/wiki/Sources_sought" title="Sources sought">Sources sought</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" 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