{"id":9921,"date":"2024-03-30T10:36:38","date_gmt":"2024-03-30T05:06:38","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=9921"},"modified":"2024-09-04T15:09:46","modified_gmt":"2024-09-04T09:39:46","slug":"what-is-procurement","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/","title":{"rendered":"What is Procurement? A Guide to Procurement Process"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2bacd62681\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2bacd62681\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#What-is-Procurement\" >What is Procurement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Procurement-Process\" >Procurement Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Why-is-Procurement-Important\" >Why is Procurement Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#10-Steps-in-the-Procurement-Process\" >10 Steps in the Procurement Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Stages-of-Procurement\" >Stages of Procurement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Importance-of-Automating-Procurement\" >Importance of Automating Procurement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Procurement-Life-Cycle\" >Procurement Life Cycle<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Procurement-Purchasing-Supply-Chain-and-Sourcing\" >Procurement, Purchasing, Supply Chain and Sourcing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Types-of-Procurement\" >Types of Procurement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#Procurement-vs-Purchasing\" >Procurement vs Purchasing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-procurement\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Procurement\"><\/span><b>What is Procurement?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Procurement is the process of sourcing, acquiring and paying for goods and services for business operations. The business\u2019s internal procurement team procures these goods and services from external vendors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s important that the procurement process is as optimised and cost-effective as possible. Businesses with smooth procurement processes will likely be more profitable since a sizeable chunk of the budget goes towards procurement.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In most businesses, the Procurement or the Accounts Payable department takes care of the procurement process. AP or Procurement Managers are responsible for receiving vendor requests across departments, scouting and selecting the best suppliers, and managing <a href=\"https:\/\/razorpay.com\/blog\/what-is-an-invoice-payment\/\">invoice payments<\/a> and compliances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/razorpay.com\/x\/source-to-pay\/?utm_source=blog&amp;utm_medium=cta&amp;utm_term=informational&amp;utm_content=procurement\">Here\u2019s how India\u2019s top tech businesses are automating their procurement processes<\/a>.\u00a0<\/strong>\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Procurement-Process\"><\/span><b>Procurement Process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The procurement process<\/span> involves the processing of requests for goods or services, the receipt of invoices and payment.It starts with planning and budgeting, researching suppliers, financing, negotiating prices and terms, managing invoices and inventory, and finally approving payment and reconciling books of accounts.<\/p>\n<p><span style=\"font-weight: 400;\">It involves multiple stakeholders, cross-functional approvals, paperwork, and compliance requirements.\u00a0<\/span><\/p>\n<p>Procurement processes are defined by organizational policies around sourcing, budgeting, approvals, payments, compliance, etc.\u00a0<span style=\"font-weight: 400;\">Without powerful <a href=\"https:\/\/razorpay.com\/learn\/procurement-software\/\">procurement management software<\/a>, the process is prone to mistakes and delays. Today, businesses automate their AP process with tools like RazorpayX Source to Pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These tools help businesses manage their entire procurement process in one place. Equipped with features like vendor portals and automations, RazorpayX Source to Pay significantly simplifies the procure-to-pay process.<\/span><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/x\/source-to-pay\/?utm_source=blog&amp;utm_medium=cta&amp;utm_term=informational&amp;utm_content=procurement\">Learn more about automating your procurement process.<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why-is-Procurement-Important\"><\/span>Why is Procurement Important?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"markdown markdown-main-panel\" dir=\"ltr\">\n<div class=\"markdown markdown-main-panel\" dir=\"ltr\">\n<p data-sourcepos=\"1:1-1:450\">Procurement acts as the backbone of a healthy business, influencing its financial well-being and operational efficiency in several key ways. Firstly, it ensures value for money. Procurement specialists can secure the<strong> best possible prices<\/strong> <strong>and terms<\/strong> by strategically sourcing goods and services, negotiating effectively, and managing supplier relationships. This translates to cost savings, improved cash flow, and a healthier bottom line.<\/p>\n<p data-sourcepos=\"3:1-3:377\">Secondly, procurement plays a vital role in risk management. Procurement teams can <strong>mitigate potential disruptions<\/strong> through careful supplier evaluation, diversification of sources, and establishing clear quality standards. This includes guarding against issues like supplier insolvency, price fluctuations, or unexpected delays\u2014all of which can significantly impact operations.<\/p>\n<p data-sourcepos=\"5:1-5:434\">Finally,<strong> fostering strong supplier relationships<\/strong> is a cornerstone of effective procurement. By working collaboratively with reliable and high-performing suppliers, businesses can unlock opportunities for innovation, access to new technologies, and even secure better pricing through long-term partnerships. This collaborative approach ensures a smooth supply chain and strengthens the foundation for the company&#8217;s continued success.<\/p>\n<p data-sourcepos=\"5:1-5:434\"><strong>Read more: <a href=\"https:\/\/razorpay.com\/learn\/procurement-analytics\/\">Procurement Analytics<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"10-Steps-in-the-Procurement-Process\"><\/span><b>10 Steps in the Procurement Process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"markdown markdown-main-panel\" dir=\"ltr\">\n<ol data-sourcepos=\"3:1-12:241\">\n<li data-sourcepos=\"3:1-3:157\"><strong>Need Identification:<\/strong> A department identifies a need for a good, service, or subscription. (e.g., marketing team needing a social media analytics tool)<\/li>\n<li data-sourcepos=\"4:1-4:113\"><strong>Purchase Request:<\/strong> The department submits a formal request to the procurement team with details and budget.<\/li>\n<li data-sourcepos=\"5:1-5:129\"><strong>Request for Quote (RFQ):<\/strong> Procurement sends an RFQ to shortlisted vendors, requesting price quotes for the specified needs.<\/li>\n<li data-sourcepos=\"6:1-6:121\"><strong>Supplier Selection &amp; Negotiation:<\/strong> Procurement evaluates quotes, negotiates terms, and selects the best vendor.<\/li>\n<li data-sourcepos=\"7:1-7:171\"><strong>Master Service Agreement (MSA):<\/strong> A legal document outlining the terms and conditions between the business and the chosen vendor is drafted (may involve legal teams).<\/li>\n<li data-sourcepos=\"8:1-8:178\"><strong>Purchase Order (PO):<\/strong> The AP team creates a PO outlining the order details and sends it for approval by relevant stakeholders (requesting department, finance, procurement).<\/li>\n<li data-sourcepos=\"9:1-9:139\"><strong>Order Fulfillment:<\/strong> Upon PO approval, the supplier receives the order, processes it, and begins work on the requested goods\/services.<\/li>\n<li data-sourcepos=\"10:1-10:103\"><strong>Goods\/Services Delivery:<\/strong> The goods\/services are delivered along with a Goods Receipt Note (GRN).<\/li>\n<li data-sourcepos=\"11:1-11:167\"><strong>Delivery Verification:<\/strong> Procurement and requesting departments verify the delivered items against the GRN. Any discrepancies may lead to replacements or refunds.<\/li>\n<li data-sourcepos=\"12:1-12:241\"><strong>Invoice &amp; Payment:<\/strong> The vendor sends an invoice for payment. The procurement team performs a 3-way match (PO-GRN-invoice) for verification. Finally, the finance team initiates payment after ensuring compliance and tax deductions.<\/li>\n<\/ol>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Stages-of-Procurement\"><\/span>Stages of Procurement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are three major stages in the procurement process:<\/p>\n<ol>\n<li><strong>Sourcing:\u00a0<\/strong>In this stage, departments or functions come up with a request and route the request to the procurement department. The procurement department proceeds with assessing vendors and sourcing the goods or services required.<\/li>\n<li><strong>Purchasing:\u00a0<\/strong>Sourcing is followed by negotiating prices and terms and placing the order with the vendor.<\/li>\n<li><strong>Payment:\u00a0<\/strong>The final stage involves 3-way matching between the GRN, PO and Invoice before making the final payment to the vendor and reconciling with the books of accounts.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-Automating-Procurement\"><\/span><b>Importance of Automating Procurement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Procurement processes are weighed down by tedious tasks, multiple stakeholders across departments, differing timelines, paperwork and compliances. An automated procurement process takes over all these boring, repetitive tasks like paperwork and managing approvals, leaving strategic work like deal negotiation to the humans.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Faster flow: <\/b><span style=\"font-weight: 400;\">Automated processes are significantly faster \u2013 it turns slow, manual slog into a smooth, efficient machine. Paperwork and projects stay on track with timelines, keeping business running smoothly.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>No errors: <\/b><span style=\"font-weight: 400;\">Robots don\u2019t make mistakes \u2013 all automated processes are reliable and accurate, eliminating the possibility of lost invoices or surprise bills.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Data-driven insights: <\/b><span style=\"font-weight: 400;\">Automation means the process is fully digitized \u2013 valuable data can be collected every step of the way. This data can be turned into powerful insights to help teams find better deals, avoid bad suppliers and save money.\u00a0\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Procurement-Life-Cycle\"><\/span>Procurement Life Cycle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The process of procurement can be thought of as a lifecycle since it is a continuous, recurring process. The business constantly needs goods and services to function &#8211; as soon as one need is fulfilled, another need arises.<\/p>\n<p>The completion of a procurement cycle doesn&#8217;t mark a true end. The data and experience gained from each cycle inform future procurement decisions and feed back into the beginning of the process, creating a continuous loop.<\/p>\n<p>The procurement lifecycle begins with identifying a specific need, followed by fulfilling that need through vendors or suppliers, making the payment to the vendor and reconciling the transaction.<\/p>\n<p>Throughout this lifecycle, meticulous record-keeping is essential for maintaining a transparent and auditable procurement trail.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Procurement-Purchasing-Supply-Chain-and-Sourcing\"><\/span>Procurement, Purchasing, Supply Chain and Sourcing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Procurement vs Purchasing<\/strong>: <span style=\"font-size: 19px;\">Procurement is the larger process of identifying needs and negotiating contracts to manage supplier relationships. Purchasing involves a specific focus on tasks like issuing purchase orders, processing invoices, and ensuring smooth communication with vendors.<\/span><\/p>\n<p><strong><span style=\"font-size: 19px;\">Procurement vs Sourcing: <\/span><\/strong><span style=\"font-size: 19px;\">S<\/span><span style=\"font-size: 19px;\">ourcing is a step within the larger process of procurement that focuses on finding and vetting potential suppliers for the required goods or services.\u00a0<\/span><\/p>\n<p><strong>Procurement vs Supply Chain: <\/strong><span style=\"font-size: 19px;\">Supply chain management is the process of coordinating logistics, inventory and warehousing, delivery and other functions that ensure that the procured goods are delivered to the end user.\u00a0<\/span><\/p>\n<p><span data-sheets-root=\"1\" data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Related Read: What Is the Difference Between Inbound and Outbound Logistics?&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:332483,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:14277081},&quot;9&quot;:0,&quot;10&quot;:1,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;19&quot;:0,&quot;21&quot;:0}\">Related Read: <a href=\"https:\/\/razorpay.com\/learn\/inbound-and-outbound-logistics-whats-the-difference\/\">What Is the Difference Between Inbound and Outbound Logistics?<\/a><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types-of-Procurement\"><\/span><b>Types of Procurement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Procurement can be categorized based on the purpose of the goods or services being procured.\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Direct procurement: <\/b><span style=\"font-weight: 400;\">This refers to the acquisition of goods and services that are directly used in the production of the final product or service offered by the business. For example, a a manufacturer of bicycles would procure raw materials like steel and rubber, as well as components like wheels and gears, through direct procurement.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Indirect procurement: <\/b><span style=\"font-weight: 400;\">This involves the purchase of goods and services that are not directly used in the production of the final product or service but are essential for the day-to-day operations of the organization. Examples of indirect procurement include office supplies, IT equipment, janitorial services, and marketing materials.<\/span><\/li>\n<li aria-level=\"1\"><b>Services procurement: <\/b><span style=\"font-weight: 400;\">Encompasses the acquisition of professional services from external providers. This can include a wide range of services, such as legal advice, accounting services, security services, and <a href=\"https:\/\/razorpay.com\/learn\/what-is-market-research\/\">market research<\/a>.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In addition to these, procurement can also be categorized in other ways.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By the method of purchasing:<\/b><span style=\"font-weight: 400;\"> This can include open tenders, closed tenders, and negotiated contracts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By the source of supply:<\/b><span style=\"font-weight: 400;\"> This can include domestic procurement, international procurement, and e-procurement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By the value of the purchase: <\/b><span style=\"font-weight: 400;\">This can be classified as small, medium, or large value procurement.<\/span><\/li>\n<\/ul>\n<p><b style=\"color: #111111; font-family: Roboto, Arial, sans-serif; font-size: 1.6315em;\">How RazorpayX Source to Pay Helped Cellbell Optimize Procurement Process<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Cellbell is a fast-growing furniture marketplace that shot up to popularity after their appearance on Shark Tank. Their product was top-quality, the customer service was top-notch and the customers were happy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But on the inside, it was getting tougher to manage multiple vendors, complex financial operations \u2013 cumbersome workflows were threatening vendor and investor relationships.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Enter RazorpayX.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With automations, integrations and super-smooth dashboards, the RazorpayX Business Banking suite brought instant clarity to Cellbell financial processes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the Source to Pay vendor management solution, Cellbell was able to pay their vendors <\/span><i><span style=\"font-weight: 400;\">before <\/span><\/i><span style=\"font-weight: 400;\">time, improving cash flow and financial stability.\u00a0<\/span><\/p>\n<p><strong><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/cellbells-success-story\/\">Read more about how RazorpayX optimized Cellbell\u2019s finances here.\u00a0<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Procurement-vs-Purchasing\"><\/span><b>Procurement vs Purchasing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>Purchasing<\/b><\/td>\n<td><b>Procurement<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Focus<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Transactional &#8211; acquiring goods\/services at right price\/quality<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Strategic &#8211; creating value through acquisition<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Activities<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ordering, expediting, receiving, paying<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Identifying needs, selecting suppliers, negotiating contracts, managing relationships, optimizing costs<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Scope<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Narrow &#8211; individual transactions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Broad &#8211; entire lifecycle of sourcing &amp; managing<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Decision-making<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Less strategic &#8211; immediate needs &amp; budgets<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Strategic &#8211; long-term goals, risk management, supplier performance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Time horizon<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Short-term<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Long-term<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Risk management<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limited<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Strategic focus on mitigation<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Technology use<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sophisticated tools &amp; data analysis<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n<p><strong>Read more<\/strong><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/guide-to-procure-to-pay\/\"><span style=\"font-weight: 400;\">Procure to Pay<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/source-to-pay\/\"><span style=\"font-weight: 400;\">Source to Pay<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/accounts-payable-ap-automation\/\"><span style=\"font-weight: 400;\">AP Automation<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/purchase-orders\/\"><span style=\"font-weight: 400;\">Purchase Order<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/cost-reduction\/\"><span style=\"font-weight: 400;\">Cost Reduction<\/span><\/a><\/p>\n<p><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-accounts-payable\/\"><span style=\"font-weight: 400;\">Accounts Payable<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Procurement? Procurement is the process of sourcing, acquiring and paying for goods and services for business operations. The business\u2019s internal procurement team procures these goods and services from external vendors.\u00a0 It\u2019s important that the procurement process is as optimised and cost-effective as possible. Businesses with smooth procurement processes will likely be more profitable<\/p>\n","protected":false},"author":151156542,"featured_media":9922,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[3772,3771],"class_list":{"0":"post-9921","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"tag-procurement","9":"tag-source-to-pay"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156542"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=9921"}],"version-history":[{"count":9,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9921\/revisions"}],"predecessor-version":[{"id":13184,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/9921\/revisions\/13184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/9922"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=9921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=9921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=9921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}