Procurement is the process of obtaining goods and services from external sources. It is a critical part of any business operation, as it is responsible for ensuring that the organization is obtaining the best value for the resources it is investing in. However, it is not without its challenges. Common procurement problems and solutions can be categorized into three distinct areas: procurement complexity, supplier management, and internal controls.
Procurement complexity is a major issue for many organizations. This includes the need to evaluate multiple vendors, understand their capabilities, and negotiate the best possible price. Additionally, organizations must create and maintain contracts with suppliers, and have the resources available to ensure that they are enforced. Solutions to this problem include developing a comprehensive procurement strategy that takes into account all of the various factors, as well as investing in the right technology and personnel to carry out these processes.