Increasing the Strategic Value of Purchasing
Procurement – buying goods and services at work – also demands a range of approaches depending on the situation, although the decisions are usually bigger ones. What’s more, since it’s someone else’s money you’re spending at work, you need to be more rigorous about ensuring you’ve considered all the factors required to make a good purchasing decision. Who do you use as a supplier? What kind of contract terms do you need? What constraints and restrictions do you have on your purchasing power? And should you make something, or buy it in?
Procuring – or purchasing – goods and services from external suppliers is a critical part of most organizations. The materials and support provided by your suppliers are often key to their organization’s overall success. Therefore, it’s good practice to manage the entire supply acquisition process carefully to make sure you get what you want – and what you pay for.