{"id":2057,"date":"2017-02-21T11:00:56","date_gmt":"2017-02-21T17:00:56","guid":{"rendered":"http:\/\/blog.misumiusa.com\/?p=2057"},"modified":"2021-10-29T16:01:14","modified_gmt":"2021-10-29T21:01:14","slug":"supply-chain-management-pt-2-procurement","status":"publish","type":"post","link":"https:\/\/us.misumi-ec.com\/blog\/supply-chain-management-pt-2-procurement\/","title":{"rendered":"Supply Chain Management Pt 2: Procurement"},"content":{"rendered":"

The Council of Supply Chain Management Professionals (CSCMP)\u2019s definition of procurement:<\/p>\n

\u201cThe activities associated with acquiring products or services. The range of activities can vary widely between organizations to include all of parts of the functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.\u201d<\/p>\n

There are several facets of procurement.\u00a0 The main job is to procure raw materials, finished product or services to create the final product.<\/p>\n

Who? – Finding Suppliers<\/strong><\/p>\n

Procurement has the responsibility to develop positive relationships with suppliers.\u00a0 This can be particularly difficult as many suppliers have different business values.\u00a0 Many companies adapt to their customer\u2019s procurement procedures and offer a wide variety of eProcurement communications.\u00a0 Procurement teams heavily rely on suppliers and those suppliers rely on their suppliers, supply chain comes full circle.<\/p>\n

Good suppliers will keep track of how their materials are used and procurement will want to know how the materials are made.\u00a0 With this type of relationship, the procurement team can predict performance on quality and reliability.\u00a0 Making business easier and adding value to each party.<\/p>\n

Procurement can also score their suppliers based on performance and work together to see where they can improve.<\/p>\n

When the procurement team has a good relationship with a supplier it brings office morale up.\u00a0 If the supplier provides quality product at a consistent basis, then this makes both the customer and procurement successful.<\/p>\n

<\/p>\n

Image from Oracle + Netscape Blog<\/a><\/p>\n

What? – Inventory<\/strong><\/p>\n

Another responsibility of procurement is understanding inventory.\u00a0 The team has to keep up with customer supply and demand.\u00a0 The question is always asked, \u201cWhy not keep a lot of inventory?\u201d.\u00a0 There is cost associated with keeping this inventory.\u00a0 It costs money to store, insure, deliver and purchase access inventory.\u00a0 Procurement has the responsibility to communicate with suppliers the different requirements for stocking their products and keeping up with the ever changing demands of customers.<\/p>\n

The procurement team has to set quality goals and standards of incoming product and deal with the situation of bad product.\u00a0 How to dispose of the bad product and issue claims with the suppliers.<\/p>\n

Controlling inventory levels can set companies apart from their competitors.\u00a0 Customers rely on their suppliers to have the sufficient inventory to fulfill their needs.\u00a0 Procurement has this power in their hands.<\/p>\n

There are many responsibilities of procurement even further than the duties explained here.\u00a0 Suppliers and buyers depend on each other for profit, progress, and improvement. \u00a0Up next we will review another section of supply chain management, Manufacturing and Operations. \u00a0Stay tuned!<\/p>\n

Cover photo from Procurious: Blog for Procurement Specialists\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Council of Supply Chain Management Professionals (CSCMP)\u2019s definition of procurement: \u201cThe activities associated with acquiring products or services. The range of activities can vary widely between organizations to include all of parts of the functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.\u201d There are several facets of procurement.\u00a0 The main job is to […]<\/p>\n","protected":false},"author":46,"featured_media":2060,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[1131],"tags":[375,374,366,376,373,372,371],"aioseo_notices":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/posts\/2057"}],"collection":[{"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/comments?post=2057"}],"version-history":[{"count":4,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/posts\/2057\/revisions"}],"predecessor-version":[{"id":2063,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/posts\/2057\/revisions\/2063"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/media\/2060"}],"wp:attachment":[{"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/media?parent=2057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/categories?post=2057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/us.misumi-ec.com\/blog\/wp-json\/wp\/v2\/tags?post=2057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}