What does purchasing mean?

Sourcing is an English word, which refers to the process of finding and obtaining resources such as products, services, materials or labor.

This term is usually used in the fields of commerce, procurement and supply chain management, and describes how enterprises or organizations find suitable suppliers, manufacturers or service providers on a global scale.

I. Purchase type:

Product procurement: Enterprises usually need to purchase products from manufacturers or suppliers. This process is called product procurement. This includes the steps of finding high-quality products, negotiating prices and delivery terms.

Service outsourcing: An enterprise may outsource a part of its business process to a professional service provider, which is called service outsourcing. For example, services such as customer service and IT support can be provided by external companies.

Human resource recruitment: When necessary, enterprises can entrust recruitment companies to find suitable talents. This process is called human resource recruitment. The recruitment company will be responsible for publishing job advertisements, screening resumes and interviewing candidates.

Raw material procurement: manufacturing enterprises usually need a lot of raw materials to produce products, and will purchase raw materials from various countries or regions. This process is called raw material procurement.

Second, the importance of procurement:

Cost advantage: through global resource search, enterprises can find products or services with lower cost and better quality, thus improving their competitiveness.

Specialization: Outsourcing specific business processes to professional service providers can ensure that these businesses are handled professionally and improve efficiency and quality.

Focus: By outsourcing some businesses, enterprises can focus more on their core businesses and improve their core competitiveness.

Globalization: Procurement enables enterprises to cross the international market, obtain resources from different countries and achieve global distribution.