Procurement vs Acquisition
Since the words acquisition and procurement seem to carry similar meaning, people use it interchangeably but there is a subtle difference between procurement and acquisition. If we first look at the words in a general sense, they are both nouns. Acquisition has originated from Latin word acquisitio(n-). Acquisition has two main senses in which it is used. Procurement only has one main meaning to speak about. This other word called acquisition has the ability to confuse many as it is used to refer to processes that are very similar to procurement. These are just superficial differences about the appearance and word category they belong to. The important difference between procurement and acquisition is learning how different they are from each other when used in English. That is what this article is about; describing you how these two words, acquisition and procurement are different from each other.
What does Procurement mean?
If we go by the definition of procurement as given by Wikipedia on the net, it is the acquisition of goods and services by a company to fulfill its needs and requirements from the right vendor at the right time, in the right quantity and the best possible rates. In this sense, procurement looks like a superior, refined version of purchasing, which sounds like repeat buying of items without giving a thought to vendor, quality, location, or time . The verb of procurement is procure. An example for the use of procurement is given below.
Last defence procurement was done three months ago.
The above sentence is given because procurement also has the meaning “The action or occupation of acquiring military equipment and supplies.”
What does Acquisition mean?
Acquisition is a term more commonly employed whenever there is a takeover of a smaller or bigger firm by another company. However, it is also used in conjunction with the procurement process especially in government organizations. For example, in Department of Defense, acquisition is defined as conceptualization, initiation, design, development, test, contracting, production, deployment, logistics support, modification, and disposal of weapons and other systems, supplies, or other services to satisfy Department of Defense needs. This makes it clear that procurement is just a small part of a larger acquisition process. Acquisition includes all activities from planning, preparation and processing of a requisition, solicitation, evaluation, award and contract formation to receipt and acceptance of delivery, payment, and inventory management.
The process of acquisition, as it takes place in governmental organizations, can be explained through a series of steps such as user requirement, concept design, the definition phase, development, industrialization production and operational.
Acquire is the verb form of acquisition.
What is the difference between Procurement and Acquisition?
• Procurement deals with an existing product that can be purchased off the shelf. Acquisition, on the other hand, especially in the Department of Defense, refers to arms designed from scratch as specified by the client.
• As such, procurement is much easier than acquisition.
• Acquisition is a much longer process than procurement.
• Procurement is just a part of the acquisition process.
Further Reading:
- Difference Between Learning and Acquisition
- Difference Between Takeover and Acquisition
- Difference Between Merger and Acquisition
- Difference Between Sourcing and Procurement