  procurement is the acquisition of goods, services or works from an outside external source. it is favourable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and location. corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion. ==overview== almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and price fluctuations. procurement generally involves making buying decisions under conditions of scarcity. if good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis. an important distinction should be made between analyses without risk and those with risk. where risk is involved, either in the costs or the benefits, the concept of expected value may be employed. {| border="1" cellspacing="1" cellpadding="10" style="width:500px; margin:auto; border-collapse:collapse;" |- ! colspan="5" style="width:500px;"| direct procurement and indirect procurement |- | colspan="2" rowspan="3" style="width:50px;"| &nbsp; ! colspan="3" style="width:450px;"| types |- ! direct procurement ! indirect procurement |- ! style="width:150px;"| raw material and production goods ! style="width:200px;"| maintenance, repair, and operating supplies ! style="width:100px;"| capital goods and services |- ! style="width:5px;;" rowspan="5"| f e a t u r e s ! style="width:45px;"| quantity | style="width:150px;"|large | style="width:200px;"|low | style="width:100px;"|low |- ! frequency | style="width:150px;"|high | style="width:200px;"|relatively high | style="width:100px;"|low |- ! value | style="width:150px;"|industry specific | style="width:200px;"|low | style="width:100px;"|high |- ! style="width:45px;"|nature | style="width:150px;"|operational | style="width:200px;"|tactical | style="width:100px;"|strategic |- ! style="width:45px;"|examples | style="width:150px;"|crude oil in petroleum industry | style="width:200px;"|lubricants, spare
Business_terms Procurement Supply_chain_management Systems_engineering