Procurement Management is the process of getting the manufactured goods at the finest price, in time, and in the correct position. It is a procedure that organizes the ordering, delivering, examining, and sanctioning of items from the vendors and suppliers. Using this procedure, one can make sure that the cargo acknowledged meeting the need of organization. One of the serious features of procurement management is en route for identify how the purveyor relations will be managed, to make sure an elevated level of service.
With the growing tendency of outsourcing, acquiring goods as well services from exterior dealer can be a dangerous path for many schemes. It is consequently vital that you administer your supplier's presentation cautiously, to make sure that they create deliverables that convene your prospects. A well-organized procurement management procedure offers a back-to-back visibility of the whole procurement procedure to examine supplier skill, performance, and contract fulfillment.
Depending on the objective of the purchased raw materials and services, the activities related to Procurement is distinctly divided into two categories, namely;
- Direct Procurement
- Indirect Procurement