Procurement

Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quality and quantity, at the right time, in the right place and from the right source for the direct benefit or use of corporations, individuals, or even governments, generally via a contract. 

Simple procurement may involve nothing more than repeat purchasing. Complex procurement could involve finding long term partners – or even 'o-destiny suppliers that might fundamentally commit one organization to another.

Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and price fluctuations. Procurement generally involves making buying decisions under conditions of scarcity. If good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis.

An important distinction is made between analysis without risk and those with risk. Where risk is involved, either in the costs or the benefits, it is good practice to make use of economic analysis methods such as cost-benefit analysis or the concept of expected value may be employed.