A Report On The Procurement Process

1475 Words6 Pages
Project management has many important components that must be integrated in order to ensure the overall success of an endeavor. One area that many businesses focus on is procurement in order to maximize the benefits for the organization. As a result, many organizations are hiring procurement specialists with the purpose of ensuring that their procurement practices are efficient and current with business practices. This paper will discuss the procurement process, some of the benefits procurement offers a business, and the attributes a procurement professional should possess to become successful in the field.
The case study outlines two companies, the Chartered Institute of Purchasing and Supply (CIPS) and OPITO, which provide training
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The oil and gas industries are heavily reliant on their procurement agreements and relationships with their suppliers, which necessitates ensuring that a well-educated procurement professional manages the procurement process.

Every business engages in procurement within their operations. Procurement is defined as the action of acquiring goods or services, along with the process of seeking, negotiating, and purchasing of the goods or services (Business Dictionary.com, 2016). “The process of procurement is often part of a company’s strategy because the ability to purchase certain materials will determine if operations will continue” (Business Dictionary.com, 2016, para. 2). Procurement concentrates on purchasing essential operational goods and services that can be delivered in a timely manner at a reasonable price (Business Case Studies, 2016). Businesses must ensure that a procurement relationship promotes the acquisition of quality goods or services, within deadline parameters, which is at a reasonable price with the purpose of controlling costs within the company and ensuring that the organization can remain competitive within the marketplace.
Another aspect of procurement is related to quality. Most procurement relationships are formal, and are usually driven by price and design of the product or service being purchased (Sezar & Aguilar, 1997). The terms of the contract between buyer and supplier are
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