Purchasing
Also known as: Buying
Purchasing is the transactional activity of placing and completing orders for goods and services an organisation has decided to buy.
Purchasing is the operational core of procurement: raising purchase orders, confirming pricing and availability, receiving goods and processing payment. It focuses on executing buying decisions efficiently and accurately, once sourcing and supplier selection have been done upstream.
While often used interchangeably with procurement, purchasing is narrower — it is the buying act, whereas procurement is the whole strategic discipline around it. Digital purchasing through catalogues and marketplaces speeds up ordering, applies approval controls and captures clean spend data automatically.
Frequently asked questions
- What is purchasing?
- Purchasing is the transactional activity of placing and completing orders for goods and services — raising purchase orders, confirming price and availability, receiving goods and processing payment.
- What is the difference between purchasing and procurement?
- Purchasing is the act of buying — placing and completing orders. Procurement is the broader discipline that also covers sourcing, negotiation, contracting, risk and supplier management.
Related terms
Procurement
Procurement is the end-to-end process of finding, agreeing terms with, and buying goods or services that an organisation needs to operate.
Read definitionPurchase Order (PO)
A purchase order (PO) is the official document a buyer sends to a supplier to confirm the order of goods or services at agreed prices and terms.
Read definitionProcure-to-Pay (P2P)
Procure-to-pay (P2P) is the end-to-end process that connects requisitioning and purchasing to receiving and paying for goods and services.
Read definitionGo deeper
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AI-first procurement software. Live marketplace. Human services.
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Operating model · diagram
- 01
AI-first software
AI-first procurement software for long-tail spend
- 02
Live marketplace
A live B2B marketplace
- 03
Human services
Human sourcing and support
- 04
Optional add-on
Fulfilment support for merchants
