What is the Difference Between Acquisition and Procurement?
🆚 Go to Comparative Table 🆚The main difference between acquisition and procurement lies in their objectives, scope, and processes. Here are the key differences between the two:
- Objective:
- Procurement aims to acquire goods and services that meet an organization's needs at the lowest possible cost.
- Acquisition seeks to acquire ownership or control of assets or companies to achieve strategic objectives.
- Scope:
- Procurement is a narrow process focused on sourcing and buying external goods through contracts.
- Acquisition is a broader process that encompasses not only procurement but also other processes that precede and follow it, such as design, production, and logistics support.
- Process:
- Procurement typically involves a small number of stakeholders and is governed by legal and financial regulations.
- Acquisition planning is a more collaborative process that involves multiple departments addressing capability requirements, design, technology, and time and cost.
In summary, procurement is a specific process focused on acquiring goods and services at the lowest cost, while acquisition is a broader, more strategic process that includes procurement and other processes to achieve an organization's objectives.
Comparative Table: Acquisition vs Procurement
The main difference between acquisition and procurement lies in their scope and focus. Here is a table highlighting the key differences between the two processes:
| Aspect | Acquisition | Procurement |
|---|---|---|
| Definition | Acquisition is the process of obtaining goods, services, or assets, often from external sources, to meet specific needs or requirements. It includes the design and production of goods to fill those needs. | Procurement is the full process of sourcing and gathering materials, including the actual act of purchasing goods and services from outside sources. It is a more focused process that involves the acquisition of goods, services, and work from outside sources. |
| Scope | Acquisition deals with a broader range of topics, covering the entire life cycle of acquired systems, from conceptualization to disposal. | Procurement is a subset of the acquisition process, focusing on the actual act of purchasing goods and services. It also involves establishing schedules, identifying product requirements and specifications, and evaluating needs and budgets. |
| Goals and Focus | Acquisition is more strategic, focusing on specific long-term goals and addressing overall capability requirements, design, technology, and time and cost. | Procurement is more transactional, focusing on short-term goals like making efficient transactions and ensuring the timely delivery of goods and services. |
In summary, acquisition is a broader process that deals with the entire life cycle of acquired systems, while procurement is a subset of the acquisition process, focusing on the actual act of purchasing goods and services.
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