Procurement practices are an essential element of running a successful business. It is the overarching term used to describe the processes and procedures used to acquire goods and services, such as supplies, materials, equipment and other resources. In order to ensure the efficient and effective sourcing and acquisition of goods and services, businesses must adhere to a set of standards and procedures. This is known as procurement.
The main goal of procurement is to ensure that the goods and services are acquired in a timely, cost-effective and reliable manner. To achieve this, businesses must have a comprehensive and organized approach to procurement. This includes establishing a clear set of policies and procedures for the selection and purchase of goods and services, and for the management of the procurement process.
The most common procurement practices involve the use of written contracts, competitive bidding, effective negotiations, and the evaluation of suppliers.