Procurement And Supply Chain Management Definition

Procurement and supply chain management are defined as the process of acquiring goods and services from suppliers and managing the flow of these goods and services through the organization to the point of consumption. In other words, procurement and supply chain management is responsible for ensuring that an organization has the resources it needs to function, while also ensuring that these resources are obtained in a cost-effective and efficient manner.

The procurement process begins with identifying the need for a particular good or service. Once the need has been identified, procurement professionals work to identify potential suppliers who can provide the desired goods or services. Once a supplier has been selected, negotiations will take place in order to agree on terms of purchase, such as price, delivery date, etc. Once an agreement has been reached, a purchase order will be placed with the supplier.

The supply chain management process begins when goods or services are received from suppliers. Supply chain professionals are responsible for ensuring that these goods or services are properly stored and tracked. They also work to ensure that the goods or services are delivered to the point of consumption in a timely and efficient manner. In addition, supply chain professionals may also be responsible for managing relationships with suppliers, including negotiating contracts and monitoring performance.