📌 Definition:

Procurement is the process businesses use to purchase goods, services, and raw materials needed to operate.

It ensures companies get the right products at the right price, quality, and time.

🛒 What businesses procure:

• raw materials

• software

• machinery

• office supplies

• logistics services

• professional services

📋 Procurement process:

• identifying business needs

• finding suppliers

• comparing prices

• negotiating contracts

• placing orders

• receiving goods

💡 Example:

Apple procures components from suppliers worldwide to manufacture devices.

Tesla secures batteries and manufacturing materials globally.

⚠️ Procurement challenges:

• supplier delays

• rising costs

• poor quality vendors

• contract risks

• global shortages

📈 Why procurement matters:

• lower costs

• stable production

• better profit margins

✨ Key Takeaway:

Companies cannot sell products efficiently if they fail to buy resources efficiently.