"Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source..."
The process of acquiring goods, services, or works from an external source.
Procurement Strategy: This involves developing a plan for purchasing goods and services that align with the organization's goals and mission.
Supplier Management: This involves selecting, monitoring, and developing relationships with suppliers to ensure timely delivery and quality products.
Negotiation Skills: The ability to negotiate favorable terms with suppliers to achieve cost savings and improve procurement outcomes.
Sourcing: The process of finding and acquiring goods and services from suppliers that meet the organization's requirements.
Purchase Order Management: The management of purchase orders, including creation, approval, and tracking to ensure on-time delivery.
Bid Evaluation: The analysis and comparison of supplier proposals to select the best value for the organization.
Contract Management: The administration and monitoring of contracts, including compliance, amendments, and renewals.
Risk Management: The identification and mitigation of risks associated with procurement, including supply chain disruptions and supplier risk.
Supply Chain Optimization: The optimization of the procurement process, including supplier consolidation and inventory management, to improve efficiency and reduce costs.
Technology Tools: The use of procurement technology tools such as e-procurement systems, smart contract management, and data analytics to improve procurement outcomes.
Outsourcing: The delegation of certain procurement functions to third-party service providers to reduce costs and improve efficiency.
Quality Management: The management of quality standards for goods and services procured, including quality control and assurance.
Ethics and Sustainability: The integration of ethical and sustainable practices into procurement processes, including socially responsible procurement and environmental stewardship.
Compliance and Legal Issues: The understanding of laws, regulations, and policies that govern procurement, including competitive bidding laws and contract laws.
Performance Metrics: The establishment and tracking of key performance indicators (KPIs) to measure the success of procurement outcomes and identify areas for improvement.
Direct Procurement: The acquisition of goods and services that directly contribute to the creation of a final product.
Indirect Procurement: The acquisition of goods and services that are not directly involved in the production of a final product, but are essential for the smooth operation of an organization.
Services Procurement: The acquisition of services, which can include everything from IT and marketing to maintenance and consulting.
Construction Procurement: The acquisition of goods and services related to the construction of buildings, roads, and other infrastructure projects.
Capital Procurement: The acquisition of high-value assets such as machinery, equipment, and vehicles.
Maintenance, Repair, and Operation (MRO) Procurement: The acquisition of goods and services needed to keep an organization’s operations running smoothly, including office supplies, utilities, and repairs.
Public Procurement: The acquisition of goods and services by public institutions such as government agencies and educational institutions.
Contracting Out: The acquisition of goods and services from external suppliers to fulfill organizational needs.
E-Procurement: The use of electronic methods to facilitate the purchasing and procurement process.
Global Procurement: The acquisition of goods and services from international suppliers to meet organizational needs.
"...often with the use of a tendering or competitive bidding process."
"When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement."
"Procurement as an organizational process is intended to ensure that the buyer receives goods, services, or works at the best possible price..."
"Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and fluctuations in the prices of goods."
"Corporations and public bodies often define processes intended to promote fair and open competition for their business..."
"...while minimizing risks such as exposure to fraud and collusion."
"Organizations which have adopted a corporate social responsibility perspective are also likely to require their purchasing activity to take wider societal and ethical considerations into account."
"The introduction of external regulations concerning accounting practices can affect ongoing buyer-supplier relations in unforeseen manners."
"...when aspects such as quality, quantity, time, and location are compared."
"...processes intended to promote fair and open competition for their business while minimizing risks..."
"The term may also refer to a contractual obligation to 'procure', i.e. to 'ensure' that something is done."
"...often with the use of a tendering or competitive bidding process."
"...to ensure that the buyer receives goods, services, or works at the best possible price..."
"...purchasing activity to take wider societal and ethical considerations into account."
"The introduction of external regulations concerning accounting practices can affect ongoing buyer-supplier relations..."
"...considerations into account."
"Minimizing risks such as exposure to fraud..."
"...when aspects such as quality, quantity, time, and location are compared."
"Corporations and public bodies often define processes intended to promote fair and open competition..."