What does the term procurement refer to in contract management?

The term procurement in contract management specifically refers to the process of acquiring goods, services, or works from external sources. This encompasses various activities involved in sourcing and obtaining the necessary resources for a project or organization, including identifying needs, conducting market research, soliciting bids, negotiating contracts, and managing supplier relationships.

In the context of procurement, it is essential to ensure that the acquired resources meet the quality, timing, and budget requirements of the organization. This function is crucial because effective procurement can lead to cost savings, improved efficiency, and better overall project outcomes.

The other options do not accurately reflect the definition of procurement. Selling goods and services is distinct from procurement, as it focuses on the sales aspect rather than the acquisition process. Analyzing financial reports pertains to reviewing financial data and is not directly related to the procurement process. Hiring employees for a project involves human resources activities rather than procurement, which is centered on the acquisition of materials or services.