To define procurement broadly, “Procurement” is the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from “purchasing”, procurement involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods.
Every customer would genuinely appreciate the ability to interact directly and easily with the businesses they deal with in a simplified manner to resolve any problems if and when they arise or exchange their opinions and ideas to provide a feedback. This eventually benefits the vendor who responds to the customers and listens to their input and brings out products an services that appropriately serve the needs of the end-users. With that in mind, the implementation of VRM – from the customer’s perspective is an incredible business-customer partnership that will be winning proposition for all involved. The use of digital technology allows this basic need of every business met by a well-planned VRM program.
Purchase Request is a precise document generated by an internal or external organization to notify the purchasing department of items it needs to order, their quantity, and the time frame that will be given in the future. It may also contain the authorization to proceed with the purchase. It is also called Purchase Order Request.
As part of an organization's internal financial controls, the accounting department may institute a purchase requisition process to help manage requests for purchases. Requests for the creation of purchase of goods and services are documented and routed for approval within the organization and then delivered to the accounting group.