Question

Discuss the following procurement's objectives and consider what mentioned below them and provide an example for each Procurement objectives include: (1) Supporting organizational goals and objectives, (2) Managing the purchasing process effectively and efficiently, (3) Managing the supply base, (4) Developing strong relationships with other functional groups, and (5) Supporting operational requirements. -Effectively is concerned with how well procurement keeps its promises, whereas efficiently refers to how well procurement uses company resources in keeping its promises. -Managing the supply base refers to the selection, development, and maintenance of supply sources. -The lack of cooperation and coordination between procurement and other functions can result in supply shortages, excess inventory, and increased lead times. -Supporting operational requirements means that procurement’s focus is on satisfying customers by buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer.

Answer 1

Procurement encompasses achieving company goals, managing purchasing with effectiveness and efficiency, maintaining a strong supply base, fostering inter-departmental relations, and meeting operational needs accurately. Examples include adopting green policies, using e-procurement for efficiency, and procuring quality materials just in time.

Step-by-step explanation:

The main answer revolving around the objectives of procurement can be defined as ensuring all aspects of acquiring goods and services support the overall goals of the organization, manage those processes with effectiveness and efficiency, maintain a robust supply base, build strong inter-departmental relationships, and meet operational needs promptly and accurately. An example of supporting organizational goals and objectives is when a company seeking to be environmentally friendly adopts procurement policies that prioritize green suppliers. In terms of managing the purchasing process effectively and efficiently, an example would be utilizing electronic procurement systems that reduce the time and costs involved in purchasing.Managing the supply base might involve a company performing regular assessments of suppliers to ensure they meet quality and delivery benchmarks. Addressing the development of strong relationships with other functional groups, we might see procurement actively collaborating with the finance and operations departments to forecast demand accurately and manage budgets. Lastly, supporting operational requirements will involve procuring high-quality raw materials on time to prevent production delays, ensuring customer satisfaction and loyalty which can be seen as procurement purchasing the optimal quantity of raw materials just in time to fulfill a spike in customer orders.Conclusion Efficient and effective procurement is central to a company's success, impacting everything from cost savings and quality control to strategic positioning and customer satisfaction. By advancing these objectives with concrete actions, procurement plays a critical role in supporting the larger business strategy and operational excellence.