The word procurement implies a simple transaction involving a buyer and seller.
The terms “sourcing,” “purchasing,” and “procurement” are at times used interchangeably (depending on the industry) to define the process of procuring supplies. However, sourcing is more strategic, while purchasing and procurement refer to the actual operational function.
However, Procurement Management ensures that all materials, products, goods, and services are properly acquired so that projects and processes can proceed efficiently and successfully to positively impact the bottom line and strategic business operations.
Sometimes, in a bid to cut short term costs and/or meet delivery timelines, contractors compromise on top quality building materials (directly or indirectly) for which they over compensate for by using "more" materials which lead to long term cost overruns, wastage and poor quality output.
In this era of lean construction, the emphasis is more on processes and procedures that eradicate waste either as a result of rework or overkill and hence the need for contractors, developers and home builders to carefully map out a procurement strategy (In-house or outsourced) depending on the size of the project.
Regardless of the strategy applied, the principles, however are sacrosanct.
For medium to large scale construction projects where the contracting firm manages hundreds to thousands of workers and work tasks, and doesn't have a defined Project Management Office (PMO) to handle all the project management needs of the project, it would be imperative that procurement be outsourced to a procurement management firm to alleviate the seemingly underrated workload of; sourcing quality materials, from the best sources, at the best rates, delivered in a timely manner and manage and track vendors' payments effectively.
The role of a procurement manager/management firm in the planning and scheduling of timely and cost effective delivery of quality building materials for construction projects is of immense advantage to both the contractor and the project success because it allows the contractors to focus on the work itself, which on its own, is a lot!