Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2025 – The Complete All-in-One Guide to Exam Success!

The term for purchasing items from suppliers is procurement. This concept encompasses the entire process of acquiring goods and services, which includes not only the act of buying but also the activities that lead up to the purchase. Procurement involves identifying needs, evaluating suppliers, negotiating terms, and ensuring that the purchases align with organizational goals. It is a critical function in supply chain management as it directly affects the cost, quality, and availability of products essential for operations.

On the other hand, distribution refers to the process of delivering goods to consumers or businesses, which is a different stage in the supply chain. Outsourcing involves contracting third parties to perform certain functions or services, which can include procurement but is not limited to it. Inventory management focuses on overseeing and controlling inventory levels, storage, and orders, again distinct from the purchasing process itself. Understanding procurement is vital for effective supply chain management, as it lays the foundation for more efficient operations and strategic supplier relationships.