7 MIN READ
Increasing the Strategic Value of Purchasing
We all buy things – groceries, clothes, technology, property, and so on.
And, when we make a purchase, we take time to weigh up our decision. How much time we take depends on what we're buying, its cost, and the potential risks of our choice. Deciding what to buy for lunch, for instance, is (usually!) much easier than choosing a car.
Procurement – buying the goods and services that enable your organization to operate – involves bigger decisions and higher risks. Chances are, you're spending someone else's money, so you need to be rigorous, taking all the relevant factors into account: for example, supplier relationships, contracts, and the limits to your purchasing power.
In this article, we look at how procurement management works, why it matters, and the key factors to bear in mind when you're setting up your procurement management processes.