Learn all the modern day procurement techniques and theories with the Certified International Procurement Professional course from IPSCMI to deliver the highest value to your organization through advanced procurement processes.
CIPM One of the most valuable Certifications to validate your procurement skills and knowledge. Certified International Procurement Manager course is a must for procurement leaders to gain effective insights for leading procurement operations.
The CIPP program is designed for all aspiring procurement professionals. It is one of the best-known procurement qualifications in the world that is suitable for individuals who are committed to implementing the best procurement and supply chain practices in their organizations. The CIPP certification validates the Procurement professional’s knowledge and dedication to follow the ethical practices in the industry. It is considered as the yardstick of excellence in the field of procurement. When certified by IPSCMI, the person is well-poised to make a difference in both his career as well as the organization that he works for.
Understanding the difference between procurement and purchasing
Most people often confuse both these terms and use them interchangeably. However, there is a world of differences between procurement and purchasing which mainly depend on the results that they create in an organization. In simple terms, procurement and purchasing are two different business processes that are related to the sourcing and acquisition of goods as per the organization’s needs.
If an organization is not able to distinguish between procurement and purchasing, it may overlook some key components that help to improve the bottom line.
What is purchasing?
Purchasing is the process of buying goods/services for the organization. It is a particular function that comes under procurement. The common steps in the process include placing the order, selecting the suppliers, receiving goods/services, generating invoices and paying the supplier. It mainly focuses on short-term goals such as fulfilling the five rights in a transaction (right quality, right quantity, right cost, right time, and right place).
What is Procurement?
Procurement is the process of sourcing and acquiring goods from a third party to fulfill the needs of an organization. It is a strategic process that involves identifying the needs of the organization, finding the right suppliers, building long-term supplier relationships, managing risks in procurement, negotiating with suppliers and creating contracts. The main focus of procurement is to ensure the profitability of the organization in the long run while focusing on the value and return of investment. While purchasing is concerned only about the acquisition of goods, procurement is an ongoing function that continuously looks after supplier relationships, internal needs, market trends and supply chain costs.
Why procurement is more important than purchasing?
Procurement is a wider term that encompasses some of the core functions in business. It includes the selection of suppliers, maintaining healthy relationships with suppliers, documentation and also aligning the procurement strategy to the corporate strategy. Well, the last function shows how a wrong procurement strategy can make the company pay a huge price. For instance, if a company has adopted a green policy, it should be reflected in the procurement strategy too. The procurement function is more detail-oriented, involves many people and tasks and has strategic importance as it drives the overall performance of the organization.
International Purchasing and Supply Chain Management Institute (IPSCMI)
The International Purchasing and Supply Chain Management Institute (IPSCMI) is a prominent professional institute offering purchasing and supply chain management certifications throughout the world. IPSCMI’s purchasing and supply chain management courses and programs are provided around the world by a complete network of alliance partners.
Dr. Sathya Menon
FCIPS, FCILT, FCMI, CPM, CISCM, CPPM, CICCM, CERTIFIED SAP CONSULTANT – SCM/MM
Dr. Sathya Menon is a trailblazer in logistics and supply chain education in the Middle East. He has 25 years of experience (including consulting and training) in the field of Logistics, Supply Chain Management and Purchasing. He has worked with various MNCs like Ericsson, Compaq and large conglomerates like Samtel, Al Futtaim helping them to expand their Supply Chain operations. He has personally trained more than 25,000 professionals in the field of Logistics, Procurement and Supply Chain.
- PhD in Logistics and Supply Chain Management
- MBA in Supply Chain Management
- MBA in Materials Management
- FCIPS – Chartered Fellow of the Institute of Purchasing and Supply (CIPS – UK)
- FCILT– Chartered Fellow of the Institute of Logistics and Transportation (UK)
- Executive Program in Artificial Intelligence – Future and Impact on Business Strategy – From MIT Sloan School of Management
- Certified SAP Consultant for Supply Chain Management from SAP, Germany
- FCMI – Fellowship from Chartered Management Institute (CMI), UK
- Certified Purchase Manager (CPM) from Institute of Supply Chain Management (ISM) , USA
- Certified International Supply Chain Manager (CISCM) from International Purchasing and Supply Chain Management Institute (IPSCMI), USA
- Certified International Commercial Contracts Manager (CICCM) from from International Purchasing and Supply Chain Management Institute (IPSCMI), USA
- Certified International Professional Training Consultant (CIPTC) from American Certification Institute (ACI), USA
- Certified Professional Purchasing Manager (CPPM) from American Purchasing Society (APS), USA
- Certified Purchasing Professional (CPP) from American Purchasing Society