What is the function of procuring material for production called?

The function of procuring material for production is called procurement. This term refers specifically to the process of acquiring goods, services, or works from an external source, often involving tendering or contracting. In a supply chain context, procurement encompasses the activities necessary to obtain materials that meet production requirements in terms of quantity, quality, and timeliness, making it a critical component of supply chain management.

Other terms listed relate to different aspects of supply chain processes. Distribution pertains to the delivery of finished products to consumers or other locations, focusing on the movement of goods. Inventory management deals with maintaining optimal stock levels to meet production and sales demands, ensuring that inventory turnover is efficient and costs are minimized. Logistics involves the overall planning, execution, and control of the movement of goods and services, which incorporates procurement, distribution, and inventory management but is broader in scope. Thus, procurement is the most precise term for the act of acquiring materials for production needs.