What is Procurement?
Procurement is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
Procurement is the function within a buying organization responsible for sourcing, negotiating, and purchasing goods and services. In B2B sales, procurement often enters late to negotiate price and terms, enforce policy, and manage vendor risk. Navigating it well can decide whether a deal closes on time or slips.
Key takeaways
- Sources, negotiates, and approves purchases for the buyer.
- Often enters late, focused on price and terms, not value.
- Can add security reviews, legal steps, and approvals.
- Part of the paper process in frameworks like MEDDPICC.
Why it matters
Deals that feel won can stall or shrink in procurement through discount demands, added reviews, or approval queues. Reps who anticipate procurement and engage a champion to guide them through it avoid the classic late-stage slip.
How Ardovo handles it
Ardovo can track procurement and paper-process steps as deal milestones, so reps see approvals, security reviews, and legal stages coming. Rook flags a deal entering procurement without a mapped process or a champion to navigate it.
Frequently asked questions
Why does procurement get involved in deals?
To negotiate price and terms, enforce purchasing policy, verify compliance and security, and manage risk. Procurement teams are measured on savings and due diligence, so they push for concessions and add steps.
Why do deals slip in procurement?
Because procurement adds negotiation, security and legal reviews, and approval steps reps often fail to plan for. A deal that felt closed can lose time or value once procurement engages.