We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Role of Procurement within an Organization: Procurement Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Role of Procurement within an Organization: Procurement Essay Sample

The objectives of a world-class procurement organization move far beyond the traditional belief that procurement’s primary role is to obtain goods and services in response to internal needs. To understand how this role is changing, we must understand what purchasing is all about, starting with the primary objectives of a world-class purchasing organization. OBJECTIVE 1: Support Operational Requirements

Supporting this flow requires purchasing to:
•Understand business requirements
•Buy products and services
oAt the right price
oFrom the right source
oAt the right specification that meets users needs
oIn the right quantity
oFor delivery at the right time
oTo the right internal customer
Internal customers of purchasing include:
•Manufacturing
•Physical distribution centers
•Engineering and technical groups
•Research and development
•Information technology
•Transportation and other services
OBJECTIVE 2: Manage the Procurement Process and the Supply Base Efficiently and Effectively To manage the procurement process and supply base efficiently and effectively procurement must follow the following key steps: •Identify opportunities

•Manage internal operations
•Achieve objectives
Identify opportunities where the procurement team adds true value: •Evaluation and selection of suppliers
oAll purchases should go through the approved procurement processes oEngineering and other functional inputs are part of this process oSales personnel should not be allowed to enter contractual agreements without procurement’s involvement oIncreasing use of sourcing teams

•Review of specifications or statement of work
oReview the requirements for the material or service being provided oMay be able to suggest alternative standardized materials that can save the organization money oPeriodic review of requisitions can allow greater leveraging of requirements •Acting as the primary contact with supplier

•Determining the method of awarding contracts

•Managing the supply base
oCurrent suppliers are competitive
oIdentification of new potential suppliers and develop relationships oImprovement and development of non-competitive existing suppliers Manage its internal operations efficiently and effectively, including: •Management of procurement staff

•Developing and maintenance of policies and processes
•Introducing and leveraging appropriate technology and systems •Defining procurement strategy and structure
•Developing plans and measures
•Providing procurement leadership to the organization
•Providing professional training and growth opportunities for employees Achieve this objective through :
•Leadership of procurement for the organization
•Sourcing management
•Ownership and accountability for sourcing processes
•Communication of purpose, process and pay off
•Collaboration and partnering
•Teamwork
OBJECTIVE 3: Develop Strong Relationships with Other Functional Groups
OBJECTIVE 4: Support Organizational Goals and Objectives

Develop integrated purchasing strategies that support organizational strategies. Effective purchasing strategies involve:
•Monitoring supply markets and trends (e.g., material price increases, shortages, changes in suppliers) and interpreting the impact of these trends on company strategies •Identifying the critical materials and services required to support company strategies in key performance areas, particularly during new product development •Developing supply options and contingency plans that support company plans •Supporting the organization’s need for a diverse and globally competitive supply base Case Study

Read Case Study 1 and consider the following questions:
•What initially appears to be the problem? What really is the problem(s) in this case? •How easy is it to switch suppliers? What could complicate a firm’s ability to switch to a new supplier? •What does it mean to get to the root cause of a problem? •What is the role of purchasing in helping to coordinate communication between different parts of the organization, and the external supply base? Did communication fall apart here? Why? Categories:

SCM TutorialsProcurement
Read the Supply Chain Management Professional Newsletter
Read the latest supply chain research, articles, and news as soon as we post them.
Privacy Policy
Professional Resources

SCM Articles
•SCM Resources
oSCM Terms
oSCM Basics
oTariffs and Tax Primer
oNAICS Navigator
•SCM Blog
oBusiness Process Outsourcing
oForecasting
oHealthcare Supply Management
oSupply Chain Analytics
•SCM Tutorials
oCPFR
oForecasting
oInventory Management
oProcurement

•SCM Features
oHot Topics
oLessons Learned
oFacts & Figures
oSC Security
•SCM Topics
oInventory Management Supply Chain
oSix Sigma
oSC Risk
oSupplier Partnerships
oSCM Supplier Evaluation
•SCM Research
oProduction Labor Sourcing
oSCM Pain Points
•Supply Chain Sustainability
oSupply Chain Sustainability Reports
•Supply Chain Management
oSupply Chain Management Definitions & Terms
oSupply Chain Management Articles
SCM Whitepapers

•Whitepapers
Popular Articles
•E-Procurement and the Purchasing Process
•What is Supply Chain Management?
•The Procurement Process – Creating a Sourcing Plan: Procurement : A Tutorial •Introduction: Collaborative Planning, Forecasting and Replenishment (CPFR): A Tutorial •Home
•SCM Articles
•Contact Us
•Poole College of Management
•Executive Education
•Terms of Service
•Privacy Policy

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Business organization - Management and control

Distribution is the movement of a good or service from the source to the final customer, consumer, or user. This process is made through a distribution channel for example wholesalers and retailers. The purpose of a distribution channel is to supply a link between production and consumption. There are 2 types of distribution channels these are indirect and direct. An indirect distribution channel relies on middle...

Principles total quality management

Many organizations are seeking to gain competitive advantage by focusing on managing costs, times and quality of services or products. The purpose of the study is to examine the attitude toward implementation of total quality management principles and how the effects of the intention to implement TQM in an organization. The study reviews past research to examine the perception of implementing TQM principles. Result find...

Taylor’s theory of scientific management

Throughout this essay I will discuss the importance of understanding organisational behaviour and the different factors of success it effects. Organisational behaviour is the study of the structure and management of organisations, their environments, and the actions and interactions of their individual members and groups. (TEXT BOOK) I plan to look at Taylor’s theory of scientific management, Ford’s theory of the assembly line and contrast...

Political regime

The main topic of my essay is the \"political regime\". I present the first explanation from the book of Igor Ivanovich Sanzharevsky \"Political Science: A Dictionary-Directory\" which he wrotes on the works of Jean-Louis Kermond. I. Sanzharevsky defines this term as a set of elements of ideological, institutional and sociological order that contribute to the formation of political management of a given country for a...

Management a science or art

In the following essay, we will discuss in detail about is management a science or art? It\'s being a fascinating issue for an extensive time span that whether management is a science or art. There are many conflicts between theorist and philosophers since 19th centuries about this topic. But no one has reached a conclusion that it can be said whether it is a science...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member