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What does Procurement mean?

The act of obtaining goods or services, usually to fulfill the requirements of a business, is called procurement. In most cases, procurement is associated with companies as the purchase of goods or services is often large scale. 

Globally, businesses embrace cutting-edge procurement processes and solutions as a necessity, not a luxury. These technologies can achieve substantial cost reductions, exponential product development speed, and quality assurance. 

To remain competitive, today's enterprises must ensure due diligence of suppliers across various regions in the world before signing any long-term contracts. Enterprises must improve their performance across the entire supply chain process, including procurement. Procurement is the key differentiator in global businesses, and it demands multiple resources from a business. 

Across the globe, no enterprise is so self-reliable that they have internal access to all the materials. Consequently, they rely on other businesses when they have to acquire goods and services that are crucial to their operations. As a result, procurement is not only about buying goods or services daily to run operations but also to ensure long-term value addition. 

Companies need to give adequate importance to their procurement strategy and outcomes. 

Enterprises must have a robust procurement and supply chain management strategy for added business benefits, success, and continuity. The procurement process can be considered a strategic function for identifying, planning, and acquiring the organization's current and future requirements.


Procurement begins with analyzing spend, identifying savings opportunities and negotiating contracts, and it extends up to managing vendor performances and settling final payments with numerous other processes in the middle. Procurement function’s end goal is to develop and implement strategies that are targeted at maximizing value of every buck spend. 

Continue to read more about the GEP’s procurement services.

World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management

GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.

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Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise 

GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.

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