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In this video, I delve into the critical differences between procurement and purchasing, two concepts that are often misunderstood. With over 25 years of experience in procurement optimization across more than 1,000 companies, saving them over $500 million, I share my insights to clarify these terms. Learn how purchasing is just the tip of the iceberg in the acquisition process, and discover why procurement involves a strategic approach, encompassing supplier selection, contract management, and long-term supplier relations. Whether you're buying a car or planning significant purchases for your business, understanding these distinctions can enhance your strategic decisions. Tune in to master the art of effective buying and strategic procurement.
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⌚️ Timestamps:
0:00 - Introduction to Procurement vs. Purchasing
0:16 - Example of Purchasing a Car
0:32 - Beginning of Procurement Explanation
1:03 - Detailed Car Specifications in Procurement
1:18 - Price Comparisons in Procurement
1:32 - Visiting Different Dealers
1:47 - Summary of Procurement vs. Purchasing
2:18 - Transition to Scientific Explanation
2:32 - Definition and Role of Purchasing
2:48 - Contrast with Procurement
3:02 - Procurement as a Strategic Approach
3:16 - Need Identification in Procurement
3:33 - Supplier Selection and Management
4:02 - Importance of Supplier Relationships
4:17 - Contract Management in Procurement
4:33 - Performance Review in Procurement
5:02 - Summary of Strategic Nature of Procurement
5:18 - Conclusion and Call to Action
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Video by nm@noahmiguel.com