Procurement
Every organization purchases items, meaning, every organization requires to purchase
supplies, perhaps as raw materials, components, sub-assemblies, spares, equipment, services
and consumables. The procurement of these is either buying or leasing them.
Procurement interacts with every single unit in the organization, going from marketing and sales
to engineering, design and manufacturing, therefore is to important for the organization.
● Procurement is important for the company for a number of reasons: Materials change
- The global markets and agile supply can provide various materials very briefly on
different price. This affects directly the final product, making it more competitive, possible
cheaper and more appealing to the customers.
● Customer demand - Lately there is a growth in companies product mix, while shortening
products life cycle. A good example are Zara designs, they produce small quantities
and wide variety, that way updating the shop outlook every week and cutting down on
promotions and reductions