Procurement

Procurement refers to the process of purchasing goods or services, most often in reference to business spending. For many organizations, procurement often includes vendor selection and approval, contracting, bidding, cost negotiation, and payment processing.

Procurement can be difficult to manage, especially for larger companies. When procurement processes are too complex or time consuming, employees may attempt to avoid procurement altogether and purchase solutions on their own, with a credit card for example. This can lead to tail spend, which is difficult to track and can cause poor spend management.