What is procurement?
- Procurement is the process of purchasing and supplying essential materials, products and services needed for business operations. This process ensures that supplied goods are delivered on time, at a reasonable price, and meet company standards. This is why effective procurement is so important for optimizing supply chains, reducing costs and improving quality control measures.
Importance of purchasing in supply chain management
- Purchasing plays an important role in supply chain management by ensuring the fast and accurate flow of goods and services from suppliers to end customers. So what does this include?
1. Market research: Identifying products or services that meet customer needs based on surveys, focus groups, or interviews with industry-specific experts;
2. Supplier selection: Selection of suppliers based on factors such as price, quality and reliability, creation of supplier bases, initial and repeated evaluation of suppliers according to the service provided;
3. Contract conclusion: Evaluation of proposals and conclusion of contracts with suppliers who offer the best price-quality combination.
Improving supply chains with an effective procurement strategy
- Procurement is essential to ensure that products are available at the right time and in the right quantity with the right selection. With the right strategy, it minimizes waste and increases customer satisfaction. Effective procurement practices can help businesses optimize their supply chains by:
1. Improving supplier relationships: Sustainable relationships with suppliers reduce the need for frequent inspections or changes for product quality, allowing resources to be directed to other areas;
2. Improving quality control: Ensuring that all parts of the supply chain work together to ensure that predetermined standards are met;
3. Inventory optimization: Proper inventory management reduces financial costs and wasted resources, while ensuring supplies meet customer needs.
Modern procurement and sustainability
- Procurement in modern times also focuses on environmental sustainability and sustainable development. Companies are increasingly favoring purchasing practices that reduce emissions and support environmental goals. This includes selecting suppliers committed to sustainable practices and incorporating environmentally sustainable materials and processes. Global Management, in turn, supports sustainable development and applies it to the companies it serves, and has made it the main criterion of the company's policy for years.
Procurement is a key part of any successful supply chain management strategy. By ensuring the availability of goods and materials and coordinating all parts of the supply chain, the procurement process helps businesses operate productively and efficiently. Understanding and implementing effective procurement practices can significantly improve overall supply chain performance and lead to improved business results.
Global Management offers you the following services with its Procurement and Supply Chain team:
1. Receiving orders for goods and services
2. Domestic and foreign market research
3. Analysis and assessment of suppliers
4. Delivery of ordered goods
5. Provision of after-delivery service
