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Tuesday, June 15, 2021
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Digital Procurement for Effective Supply Chain Management

In industry 4.0, procurement activity will be digitalized. Organisations must understand and adapt the changes. In the digital era, it is critical for organisations to adapt their procurement operation to Digital Procurement and ride on the rapid changes that are transforming industry.

Contrasting Terminologies of Procurement versus Purchasing

Purchasing has been described as the process of ordering and receiving goods and services. Procurement, however, has been described as those activities to acquire goods and services.

These terminologies of Procurement vs Purchasing can perhaps be best explained using the PP Organogram, as shown in the diagram below. This article will focus on the terminology of Procurement, instead of Purchasing.

PP Organogram of Procurement vs Purchasing

Contrasting Processes of Conventional and Digital Procurement

The starting point is to study the process of a typical conventional procurement system, and compare this with that of the digital procurement evolution. We will also explore the key benefits of transiting from conventional to a digital procurement system.


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Ginna Koo, GDSCM
Ginna Koo has substantial years of administrative experience and has developed keen interest in supply chain management, particularly in the areas of digital procurement. She is a qualified member of Singapore Institute of Purchasing and Materials Management (SIPMM). Ginna is completing a course on the Graduate Diploma in Supply Chain Management(GDSCM) at SIPMM Institute.
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