What is the difference between purchasing and procurement?

In the traditional sense, there is a significant difference in that purchasing merely reflects the act of acquisition, while procurement encompasses more elements of the supply chain (re logistics, transportation etc.).
Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations, or individuals, generally via a contract.Simple procurement may involve nothing more than repeat purchasing.

Purchasing refers to a business or organization attempting to acquire goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations. Typically the word “purchasing” is not used interchangeably with the word “procurement”, since procurement typically includes Expediting, Supplier Quality, and Traffic and Logistics (T&L) in addition to Purchasing.

In short, the consensus around the table was that ‘purchasing’ was still viewed by much of the business world as an administrative function, linked back to order management. Whilst ‘procurement’ steps away from the transactional side and is seen as more of a strategic function or Procurement is concerned with the overall gathering of resources, while purchasing is the specific act of acquiring something by paying money for it. Purchasing is one form of procurement.