Companies aim at cost-effectiveness and good customer service, and they are key objectives in procurement. In procurement, companies aim also at confidential buyer-supplier relationships and their continuous development. Volume benefits are being used fully, for example, by combining orders, freights and invoices. Procurement professionals also monitor tied up capital and current assets: procurement staff tends to decrease inventory levels in their own company as well as in the entire supply chain.
The objective of procurement is to acquire materials, products and services as agreed on time, in terms of quality and quantity and price. Procurement has to be carried out cost-effectively and at the same time an adequate level of service should be ensured.
Procurement professionals have numerous tasks, only some of them are listed below:
- to determine supply needs
- to search for new and competitive sources of supply
- supplier selection and assessment
- to develop buyer-supplier cooperation
- to measure and report
- to ensure the best possible combination of quality, price and service
- to reduce storage costs
- to increase standardization
- to follow market and
- to promote flow of demand information
Procurement professionals must ensure deliveries of raw materials and products to factories also in unusual situations. Therefore, it is important that alternative routes and suppliers are being searched all the time.