Shadowing Practice: What is Procurement? Procurement Process Explained in 12 minutes - Learn English Speaking with Video
Creando lección...
1
Every product you touch, wear, eat, or use started with a decision.
2
Who should we buy it from?
3
How much will it cost?
4
Will it arrive on time?
5
That decision, it's called procurement.
6
From a tech startup ordering software to a hospital sourcing life-saving equipment, procurement is the invisible superpower behind every successful business.
7
But this isn't just about buying stuff.
8
It's about the science and art of getting the right things from the right people
9
at the right time and at the right price.
10
So, let's dive in.
11
First, what is procurement?
12
At its core, procurement is the process of sourcing, negotiating, and acquiring goods or services from external suppliers to meet the organization's needs.
13
This includes sourcing vendors, negotiating prices, signing contracts, tracking deliveries, ensuring quality, and finally, managing payment.
14
Whether it's software for a startup or machines for a factory, procurement decides who delivers what, when, and how much it costs.
15
For example, think of procurement like planning a big wedding.
16
You don't just go buy food and flowers.
17
You plan your guest list, find reliable caterers, compare quotations, ensure everything arrives on time, track the budget, sign contracts.
18
That's procurement on a business scale.
19
Let's take a real-world example.
20
Tata Motors, one of India's largest automobile manufacturers.
21
To build each vehicle, they need tires from Bridgestone, steel from Tata Steel, electronics from Bosch,
22
paint, seats, dashboards, software systems, etc. Tata Motors doesn't manufacture all of this in-house.
23
Instead, they procure parts from a global network of suppliers who specialize in those products.
24
If even one part, like a microchip, doesn't arrive on time, production halts, deadlines are missed, and millions are lost.
25
That's how powerful procurement is.
26
Second, how procurement works.
27
Now let's break down how procurement actually works.
28
Here's a five-stage framework used by most global organizations.
29
Step one, need identification.
30
A business unit, say the HR team, needs 100 laptops for new employees.
31
They raise a procurement request.
32
Step 2, supplier sourcing.
33
Procurement researches trusted vendors, Amazon Business, Dell, HP, etc. Step 3, quotation and evaluation.
34
They invite bids, compare pricing, delivery, warranty, and customer service.
35
Step 4.
36
Contract and order.
37
They finalize the best deal and place the order with terms locked in.
38
Step 5.
39
Receive, inspect, and pay.
40
Laptops arrive, quality check, payment approved, order archived.
41
This structured process helps businesses avoid overpaying, missing deadlines, or dealing with shady suppliers.
42
Third, why procurement is so important.
43
Procurement isn't just paperwork.
44
It's a profit-driving, risk-reducing, strategy-boosting engine.
45
Let's look at five reasons why.
46
Number one, cost control.
47
Procurement controls up to 70% of company expenses.
48
Even small savings create big profits.
49
Number two, ensures continuity.
50
No materials, no production, no services, no sales.
51
Procurement ensures that there are no delays in production due to missing materials.
52
For example, during COVID-19, smart procurement helped hospitals like ApolloSource PPE kits when others couldn't.
53
Number three, maintains quality.
54
The right suppliers deliver the right results.
55
Number four, reduces risk.
56
Procurement teams assess suppliers for financial stability, reliability, and compliance.
57
For example, airlines like Indigo build relationships with multiple fuel vendors to reduce over-dependence.
58
Number five, boosts reputation.
59
Ethical and green procurement builds public trust.
60
For example, Starbucks supports small farmers and sustainable coffee sources through ethical procurement partnerships.
61
Fourth, types of procurement.
62
Procurement isn't one size fits all.
63
There are four primary types depending on what you're buying.
64
Number one, direct procurement, procurement of good services used directly in production.
65
For example, a car company buying engines, seats, and tires.
66
Number two, indirect procurement, supporting materials not part of the end product, but necessary to run the business.
67
For example, office furniture, marketing software, security services.
68
Number three, services procurement.
69
External professionals hired for a project.
70
For example, a company hiring a marketing agency or freelance graphic designer.
71
Number four, strategic sustainable procurement.
72
Sourcing focused on long-term value, environmental impact, and social or ethical benefits.
73
For example, IKEA using FSC-certified wood from verified suppliers.
74
Comparison table.
75
Fifth, the procurement process.
76
Let's go deeper.
77
Here's the full 10-step procurement cycle used by large businesses globally.
78
First, need identification.
79
A department identifies what's required.
80
Second, authorization management checks and approves the request.
81
Third, market research, shortlist suppliers from directories or platforms.
82
Fourth, RFQ or RFP creation, request for quote for simple needs or proposal for complex services.
83
Fifth, evaluation of quotes, analyze pricing, terms, delivery.
84
Sixth, negotiation, finalize favorable terms.
85
7. Contract finalization.
86
Sign a formal agreement.
87
8. Purchase order.
88
Send PO to supplier.
89
9. Delivery and inspection.
90
Receive goods and check for quality.
91
10. Invoice and payment.
92
Pay after verification and archive records.
93
Efficient organizations automate this flow with procurement software like SAP Ariba or Coupa to reduce errors and increase transparency.
94
If you're watching and finding these procurement process helpful so far, make sure to like the video, share it with others who might benefit,
95
and subscribe for more breakdowns on business, tech, and management.
96
So, quick check-in for you.
97
Have you ever been responsible for purchasing something important for your workplace or project?
98
What would you look for in a supplier?
99
Price, speed, quality?
100
Drop your answers in the comments.
101
We want to hear from you.
102
Sixth, procurement versus purchasing.
103
Now let's clear up a huge myth.
104
Procurement is not just a fancy word for purchasing.
105
Let's make the difference crystal clear.
106
Scope.
107
Procurement is a broad strategic process while purchasing is a narrow transactional activity.
108
Focus.
109
Procurement emphasizes value creation, risk mitigation, and supplier relationships, whereas purchasing is focused on buying goods and services.
110
Process stage, procurement starts before and ends after purchasing, while purchasing starts with the order and ends with payment.
111
Activities included, procurement involves sourcing, supplier evaluation, contracting, and compliance,
112
while purchasing includes ordering, receiving, and paying.
113
Timeframe.
114
Procurement has a long-term focus, while purchasing involves short-term actions.
115
Tools used.
116
Procurement utilizes RFPs, supplier scorecards, and ERP systems, while purchasing uses purchase orders and invoices.
117
People involved.
118
Procurement engages cross-functional teams.
119
Legal, finance, strategy.
120
While purchasing typically involves the procurement-slash-purchasing department.
121
Decision criteria.
122
Procurement considers the total cost of ownership, risk, and innovation potential, while purchasing focuses on the lowest price and fastest delivery.
123
Examples.
124
Procurement might involve sourcing ethical coffee for one year, while purchasing could be buying coffee filters for this week.
125
So remember, procurement is the strategy, purchasing is the action.
126
Both matter, but procurement builds long-term value.
127
Seventh, real-world procurement examples.
128
Let's look at how big names across different industries use procurement to power their operations.
129
Healthcare Apollo Hospitals procures medicine, equipment, patient food, staff uniforms, cleaning services, even ambulance fuel.
130
Procurement ensures 24-7 availability of medical supplies.
131
Equipment is sterile and certified.
132
Staff have the tools they need.
133
Aviation Indigo Airlines procures fuel contracts, airplane parts, catering services, ground staff equipment.
134
Without procurement, flights are delayed, passengers are stranded, business loses millions.
135
Construction L&T procures raw materials, steel, cement, software for 3D modeling, contracts with labor and transport vendors.
136
TechZoho procures servers, cybersecurity vendors, cloud services, ad agencies, all coordinated globally.
137
E-commerce, Misho, or Amazon procures packaging, warehousing, third-party delivery services, cloud storage,
138
customer care services, food chains, Domino's Pizza, procures cheese, flour, packaging boxes, scooters for delivery, uniforms.
139
Procurement ensures you get your pizza hot, fresh, and on time, every time.
140
Every industry, from manufacturing to education, depends on efficient procurement.
141
Eighth, challenges in procurement.
142
Procurement isn't always smooth sailing.
143
It's powerful, but it's not without its challenges.
144
Common procurement challenges, internal fraud or unethical supplier practices, global supply chain disruptions, currency fluctuations,
145
lack of transparency or poor record keeping, political instability in supplier countries, pressure to be cost effective without compromising quality.
146
To overcome these, companies must invest in skilled procurement professionals and tech-driven procurement systems.
147
Ninth, tech and trends in procurement.
148
Modern procurement is being transformed by tech.
149
Tech tools used in procurement.
150
ERP systems, like SAP Oracle, integrates procurement with finance and logistics.
151
E-procurement platforms, automate purchase orders and approvals.
152
AI and predictive analytics, demand forecasting, and supplier evaluation.
153
Blockchain ensures transparency and fraud prevention.
154
Sustainable procurement systems choose suppliers that follow ethical, eco-friendly practices.
155
Global supplier diversification.
156
Post-COVID, companies are moving from just-in-time to just-in-case supply chains.
157
Trend alert.
158
More businesses are adopting green procurement, preferring vendors who are eco-conscious, ethical, and socially responsible.
159
Tenth, roles and careers in procurement.
160
Thinking of a career in procurement?
161
If you enjoy negotiating, analyzing data, and working with people globally, procurement could be your dream career.
162
The demand is booming.
163
Popular job titles, procurement analyst, strategic sourcing manager, supply chain coordinator, vendor manager, procurement director.
164
Skills you need communication, negotiation, financial literacy, supplier relationship management, legal knowledge, tech savviness, Excel,
165
SAP, e-procurement tools, industries, hiring, FMCG, pharma, tech, retail, manufacturing, and government.
166
Every sector needs strong procurement minds.
167
So the next time you see finished product, from a car to a coffee machine, remember the invisible chain that made it possible.
168
Procurement.
169
But wait, we're not done just yet.
170
To test your understanding of everything you've learned today, head over to our website, Thinkaduka.com, and take a quick,
171
interactive, multiple choice quiz on this topic.
172
Thank you for watching, and remember, smart procurement builds smarter businesses.
173
And check out our next video on supply chain management.
174
It's directly connected to procurement.
175
Click here to watch it next.
📺 Mismo canal
B23
5 Ways New Managers Can Build Trust and Respect Quickly
Business EnglishWorking Adults
C11
What is Supplier Relationship Management (SRM)? Explain in 10 minutes
Business EnglishUniversity StudentsWorking Adults
B214
5 Key Leadership Tips Every New Manager Should Follow
Business EnglishInterview EnglishWorking Adults
B21
5 Office Politics Rules Every Leader Should Follow
Business EnglishInterview EnglishWorking Adults
C12
Operation Management in 12 minutes
Business EnglishUniversity StudentsWorking Adults
C13
Logistics Management in 12 minutes
Business EnglishUniversity StudentsWorking Adults
C1The Promotion Trap: Why High Performers Stay Stuck?
Business EnglishInterview EnglishUniversity Students
✨ Recomendar Video
C11
92 oraciones
How Things Are Made | An Animated Introduction to Manufacturing Processes
Business EnglishUniversity StudentsWorking Adults
C15
182 oraciones
How to Become an AI Product Manager in 2026 | Ex-Google, Microsoft
Business EnglishUniversity StudentsWorking Adults
C11
60 oraciones
Quick Study: How Venture Capitalists Make Decisions
Business EnglishUniversity StudentsWorking Adults
C12
187 oraciones
Video
Business EnglishUniversity StudentsWorking Adults
C12
123 oraciones
Order-to-Cash Process in SAP SD – Step by Step (Full Beginner Guide 2025)
Business EnglishUniversity StudentsWorking Adults
C11
583 oraciones
ULTIMATE Supply and Demand Masterclass (Beginner to Pro)
Business EnglishUniversity StudentsWorking Adults
C11
70 oraciones
Ricardo Vargas Shows How to Implement Governance During Project Execution
Business EnglishUniversity StudentsWorking Adults
C17
66 oraciones
What is PPAP (Production Part Approval Process)? 🔩 | Opexity
Business EnglishUniversity StudentsWorking Adults
C11
346 oraciones
Trust the Process: How to Design Teams That Actually Work
Business EnglishUniversity StudentsWorking Adults
C12
90 oraciones
What is recruitment process? | HRM | From A Business Professor
Business EnglishInterview EnglishUniversity Students
C12
175 oraciones
What is a PLC and how does it work?
Business EnglishUniversity StudentsWorking Adults
Vocabulario y notas de pronunciación para esta lección
Este vídeo tiene 175 frases y 1564 palabras para practicar shadowing. La parte hablada dura 12:39. El hablante mantiene un ritmo constante de unas 124 palabras por minuto, cómodo para el shadowing. Solo el 68 % de las palabras está entre las 3.000 más comunes del inglés, por lo que el vocabulario es exigente.
Vocabulario clave de este vídeo
15 palabras del vídeo que vale la pena aprender, con su pronunciación y significado:
| Palabra | Pronunciación | Significado |
|---|---|---|
| procurement sustantivo | /pɹəˈkjʊəɹ.mənt/ | departamento de compras, procuraduría |
| supplier sustantivo | /səˈplaɪə/ | proveedor, proveedora |
| vendor sustantivo | /ˈvɛn.dɚ/ | vendedor, vendedora |
| ethical adjetivo | /ˈɛθɪkəl/ | ético |
| arrive verbo | /əˈɹaɪv/ | llegar, arribar |
| involve verbo | /ɪnˈvɑlv/ | involucrar |
| evaluation sustantivo | /ɪˌvæljuˈeɪʃn̩/ | evaluación |
| strategic adjetivo | /stɹəˈti.dʒɪk/ | estratégico |
| hire verbo | /ˈhaɪɹ/ | contratar, emplear |
| sustainable adjetivo | /səˈsteɪnəbəl/ | sostenible, sustentable |
| negotiate verbo | /nəˈɡəʊ.ʃi.eɪt/ | negociar |
| transparency sustantivo | /tɹænsˈpæɹənsi/ | transparencia |
| globally adverbio | /ˈɡloʊbəli/ | globalmente |
| cloud sustantivo | /ˈklaʊ̯d/ | nube, nimbo |
| package sustantivo | /ˈpæk.ɪd͡ʒ/ | paquete, kete |
Phrasal verbs que vas a escuchar
| Palabra | Pronunciación | Significado |
|---|---|---|
| break down verbo | descomponerse, averiarse | |
| check out verbo | investigar, chequear | |
| clear up verbo | /klɪəˈɹʌp/ | esclarecer, aclarar |
Pronunciación a tener en cuenta
El hablante usa 12 contracciones y formas reducidas, como isn't, doesn't, you're. Dilas en su forma corta, tal como las oyes.
- Los sonidos de “th”: ethical /ˈɛθɪkəl/, sixth /sɪksθ/, smooth /smuːð/, seventh /ˈsɛvənθ/, eighth /eɪtθ/
- Los sonidos de “sh” y “zh”: evaluation /ɪˌvæljuˈeɪʃn̩/, negotiate /nəˈɡəʊ.ʃi.eɪt/, efficient /ɪˈfɪʃənt/, identification /aɪˌdɛn(t)ɪfɪˈkeɪʃn̩/, negotiation /nɪˌɡəʊ.ʃiˈeɪ.ʃən/
- Palabras largas — cuida el acento: evaluation /ɪˌvæljuˈeɪʃn̩/, sustainable /səˈsteɪnəbəl/, negotiate /nəˈɡəʊ.ʃi.eɪt/, transparency /tɹænsˈpæɹənsi/, identification /aɪˌdɛn(t)ɪfɪˈkeɪʃn̩/
Cómo practicar con este vídeo
- Escucha el vídeo entero una vez sin hablar y anota las palabras que no conoces.
- Haz shadowing frase por frase a velocidad normal, repitiendo cada una hasta que tu ritmo coincida con el del hablante.
- Grábate y compara con el original, prestando atención a palabras como procurement, supplier, vendor.
¿Qué es la Técnica de Shadowing?
Shadowing es una técnica de aprendizaje de idiomas respaldada por la ciencia, desarrollada originalmente para la formación de intérpretes profesionales y popularizada por el políglota Dr. Alexander Arguelles. El método es simple pero poderoso: escuchas audio en inglés nativo y lo repites en voz alta de inmediato, como una sombra que sigue al hablante con solo 1-2 segundos de retraso. A diferencia de la escucha pasiva o los ejercicios de gramática, el shadowing obliga a tu cerebro y músculos de la boca a procesar y reproducir simultáneamente patrones de habla reales. Las investigaciones muestran que mejora significativamente la precisión de la pronunciación, la entonación, el ritmo, el habla conectada, la comprensión auditiva y la fluidez al hablar, convirtiéndola en una de las metodologías más efectivas para la preparación del IELTS Speaking y la comunicación en inglés en el mundo real.