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. Procurement planning identifies which part/s of the project should be procured from resources outside of the organization. Weather or not to procure resources from outside depends upon what is more cost effective and certain other factors.
One of the most important aspects of procurement is contract and vendor management. There are different type of contract, out of which an organization chooses the most profitable one for its project. Contract closure includes setting all planned objectives with the vendor and the confirmation that all obligations of the contract were met as expected. The final step is the project closure which includes processes at various levels of the organization.