"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 or services needed for the operation of the supply chain.
Procurement Process: The procurement process involves various stages such as identifying requirements, soliciting bids, evaluating proposals, selecting suppliers, issuing contracts, and monitoring performance.
Supply Chain Management: The effective management of the entire supply chain, from suppliers to customers, is vital to ensure efficient procurement.
Military Procurement: Military procurement is a distinct process that involves purchasing equipment, materials, and services for defense purposes.
RFP/RFQ process: A request for proposal (RFP) and request for quotation (RFQ) are formal documents used to solicit proposals from potential vendors.
Strategic Sourcing: Strategic sourcing involves analyzing and managing procurement activities to identify cost savings opportunities and improve supplier relationships.
Contract Management: Contract management involves administering contracts to ensure that both parties are fulfilling their obligations.
Negotiation Skills: Effective negotiation skills are crucial in procurement to ensure the best value for the organization.
Legal Issues: Procurement involves legal considerations such as contract law, ethics, and compliance with regulations.
Risk Management: Procurement also involves managing different types of risks such as supplier risk, contract risk, and operational risk.
Inventory Management: Inventory management involves managing and optimizing inventory levels to ensure adequate supply while minimizing inventory costs.
Quality Management: Quality management involves ensuring that the procured goods and services meet the required quality standards.
Supplier Relationship Management: Supplier relationship management involves engaging with suppliers to develop long-term relationships and improve collaboration.
Vendor Evaluation: Vendor evaluation involves assessing the performance of suppliers to ensure that they meet the organization's requirements.
Cost Analysis: Cost analysis involves analyzing the total cost of ownership (TCO) of purchased goods and services, including acquisition costs, operational costs, and disposal costs.
Market Analysis: Market analysis involves researching and analyzing market trends and conditions to inform procurement decisions.
Direct procurement: Direct procurement involves the purchase of goods and services directly from suppliers. This type of procurement is used when there is a specific requirement for a particular item or service.
Indirect procurement: Indirect procurement involves the purchase of goods and services used in the daily operations of an organization. These goods and services are not directly related to the organization's core business activities.
Project procurement: Project procurement involves the purchase of goods and services necessary for the completion of a specific project. These goods and services are directly related to the project and are typically time-sensitive.
Services procurement: Services procurement involves the purchase of services such as consulting, legal, or accounting services. These services are usually provided by external vendors or contractors.
E-procurement: E-procurement involves the use of electronic platforms such as the internet to purchase goods and services. This type of procurement is efficient and cost-effective as it eliminates the need for paperwork and physical communication.
Global procurement: Global procurement involves the purchase of goods and services from international suppliers. This type of procurement is used when the required goods or services are not available locally or when there is a cost advantage to purchasing from foreign suppliers.
Government procurement: Government procurement involves the purchase of goods and services by government agencies. This type of procurement may be subject to specific legal and regulatory requirements.
Public procurement: Public procurement involves the purchase of goods and services by public organizations such as schools, hospitals, and nonprofits. This type of procurement may be subject to specific legal and regulatory requirements.
Emergency procurement: Emergency procurement involves the purchase of goods and services in response to an emergency situation such as a natural disaster or a military conflict.
Outsourced procurement: Outsourced procurement involves the transfer of procurement activities to an external vendor or contractor. This type of procurement enables organizations to focus on their core competencies while outsourcing non-core activities.
"...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..."