Key Functions in Procurement

Procurement professionals work to determine the company’s needs and research potential sources of goods and services. They may visit factories and trade shows and talk directly to potential suppliers. They may also perform due diligence to determine the quality of the products and services. Procurement professionals also keep an eye on price trends and competition.

Key Functions in Procurement

Procurement is concerned with keeping costs down and achieving maximum cost savings. This means it tends to formalize contracts and remove subjectivity. It also aims to make services as commodities as possible. However, this type of procurement has its risks and challenges.

Key Functions in Procurement

Procurement departments also manage the relationships with key vendors. For example, they may negotiate discounts with long-term suppliers and monitor suppliers’ performance. They may end contracts with suppliers who raise prices, reduce quality, or become unreliable in procurement management. Procurement departments also work closely with the finance department of a company to ensure adequate funding for procurement expenses.

Procurement professionals also monitor supplier performance and generate purchase orders. These professionals must also ensure that materials are delivered on time and meet quality standards. They must also keep track of vendor invoices and keep inventory records. They must ensure that the pricing is competitive and that the company gets the best deal.

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