Fair Work Practices
Procurement is the process of acquiring goods or services from an external source. It typically involves the purchase of materials, supplies, or services from suppliers in exchange for payment.
Procurement generally includes three distinct stages:
1. sourcing, which refers to the process of identify potential suppliers and selecting the best one;
2. negotiation, which involves reaching an agreement on price, quality, and delivery terms; and
3. contracting, which is the formalization of the agreement in a legally binding contract.
The goal of procurement is to secure goods or services that are necessary for an organization at the best possible price. To achieve this, procurement professionals must have a good understanding of market conditions, supplier capabilities, and contract law. They must also be skilled negotiators who can drive a hard bargain while maintaining good relationships with suppliers.