Procurement is the process of sourcing and acquiring the goods and services a business needs to operate, typically starting with identifying a need, researching potential suppliers, requesting quotes or proposals, negotiating terms, and issuing a purchase order. An RFQ (Request for Quotation) is used when the requirement is well-defined and price is the main differentiator, while an RFP (Request for Proposal) is used for more complex purchases where suppliers need to propose their own approach, not just a price. Strong supplier evaluation goes beyond cost alone, weighing quality consistency, delivery reliability, financial stability, and responsiveness, because the cheapest supplier is not useful if they deliver late or inconsistently. Building long-term relationships with a small number of trusted suppliers, rather than constantly switching for marginal price differences, often reduces risk and improves negotiating leverage over time.