how is procurement done 
procurement can be carried out in several ways organizations may submit an open tender to allow competitive bidding among potential suppliers they may also restrict the number of bidders or establish criteria for who is allowed to bid as an alternative to an auction process an organization may solicit a request for proposals rfp where applicants compete with one another on price and competencies sometimes procurement is done under contract with a single source or small group of exclusive suppliers the bottom lineprocurement is a strategic process that involves the acquisition of goods and services unlike purchasing it consists of a series of steps that are usually taken by businesses to meet certain needs such as production inventory and sales it often involves a series of documents like demands and receipts for payment but don t confuse procurement with purchasing although the two terms are often used interchangeably they are very different unlike procurement purchasing is transactional and normally fulfills more immediate needs 