Supply Chain Exam 2 - Rutgers University Ch. 5-8 Top Solution Graded A+

Procurement The process of selecting and vetting suppliers, negotiating contracts, establishing payment terms, and the actual purchasing of goods and services. - concerned with acquiring all of the _goods, services and work_ that is vital to an organization. - overarching or umbrella term within which the action of purchasing can be found. Purchasing The action of obtaining merchandise, capital equipment, raw materials, services, or maintenance, repair, and operating (MRO) supplies in exchange for money, or its equivalent. - the process of how _goods and services are ordered from an external third party. - can usually be described as the transactional function of procurement for goods or services. - also a term commonly used in business to represent the function of, and the responsibility for, acquiring materials, supplies, and services for an organization. Supply Management A newer term that _encompasses all acquisition activities beyond the simple purchase transaction.