Procurement is the organizational discipline for obtaining external goods and services through governed demand, sourcing, supplier, contract, purchasing, receiving, invoice, risk, and performance activities. Its role is broader than placing orders: it coordinates value, continuity, compliance, evidence, stakeholder needs, and commercial decisions across the lifecycle. Exact authority differs by operating model.
In plain English
Procurement helps the organization decide what to buy, from whom, under what controls, and how the decision is carried through.
Illustrative example
At Northstar Industrial Systems, the function coordinates a plant-services request from need clarification through supplier choice, agreement, order, receipt, and performance review.
- Related terms
- Strategic sourcing; Procure-to-pay; Source-to-pay; Procurement orchestration
- Lifecycle stages
- All stages
- Stakeholders
- All stakeholders