What are the procurement methods

procurement

Summary of all activities that serve to supply a company with material, services, operating and work equipment as well as rights and information from external sources (goods and service markets). The supply of capital and employees is not integrated under the task of procurement.

The primary objective of procurement can be formulated to ensure long-term supply that meets the requirements at the lowest possible cost. The procurement tasks can be divided into strategic and operational. a) Essential strategic tasks are:
(1) procurement market research,
(2) Determination of central and / or decentralized procurement,
(3) Supplier analysis, evaluation and selection,
(4) relationship management with suppliers,
(5) Negotiation, conclusion and control of framework agreements,
(6) Planning and use of suitable information support systems,
(7) Creation of procurement portfolios.

b) The outline of the operational tasks breaks down into:
(1) inventory control,
(2) Determination of requirements and order quantity planning,
(3) supplier selection,
(4) order,
(5) Order monitoring as well as in cooperation with the logistics department
(6) Procurement logistics.

In the context of the use of internet technologies, e-procurement has become increasingly important. A distinction is made between catalog-based procurement systems, electronic markets and direct, electronic one-to-one relationships between suppliers and customers. Today, e-procurement extends across the entire procurement portfolio.

Corporate procurement has been going through a change for a number of years: firstly, due to the internationalization of procurement markets, the importance of procurement for corporate success has increased, secondly, internet-based systems enable procurement processes to be re-engineered, and thirdly, the influence of procurement has grown in the context of product development . In addition to the use of innovative information and communication systems (ICT), concepts such as the lead buyer concept, in which an organizational unit of a company assumes responsibility for the procurement of defined product groups for the entire company, as well as concepts for creating partnership relationships with suppliers, will have increasing importance in the future.