PROCUREMENT

MANAGEMENT
Presenter Name
9/3/20XX 2

PRESENTATION TITLE

AGENDA
WHAT IS PROCUREMENT?
KEY ASPECTS OF
PROCUREMENT
MANAGEMENT
 INTRODUCTION OF PROCUREMENT

Introduction
Procurement is obtaining or purchasing goods or services,
typically for business purposes.
Procurement is most commonly associated with businesses
because companies must solicit services or purchase goods,
usually on a relatively large scale.
Companies can be on both sides of the procurement process as
buyers or sellers though here we mainly focus on the side of the
soliciting company. (INCOTERMS)

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PROCUREMENT
Subtitle

MANAGEMENT
PROCUREMENT MANAGEMENT
• is a critical component of the supply chain that focuses
on the acquisition of goods, services, and resources
needed for an organization's operations. It involves a
systematic approach to sourcing, selecting suppliers,
negotiating contracts, and managing supplier
relationships to ensure that an organization can obtain
the right products or services at the right time, quality,
and price

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OVERVIEW OF KEY
ASPECTS OF
PROCUREMENT
MANAGEMENT
1. Role and Significance of Procurement

 Procurement plays a central role in ensuring that an organization

can acquire the necessary inputs for its operations, whether they
are raw materials, components, finished products, or services.
 It impacts an organization's cost structure,
competitiveness, and ability to meet customer demand.

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2. Procurement Objectives

• Cost Reduction: Procurement aims to acquire goods and services at the most favorable terms,
minimizing costs without compromising quality

• Supplier Selection: It involves identifying and selecting the right suppliers who can provide reliable
and high-quality products or services.

• Risk Management: Procurement assesses and manages risks associated with supplier relationships,
disruptions, and supply chain vulnerabilities.

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 3.Strategic Sourcing:

• Strategic sourcing involves a comprehensive approach to procurement,

focusing on long-term supplier relationships and aligning procurement
strategies with business goals.
• It includes supplier evaluation, negotiation, and collaboration to
achieve cost savings, innovation, and supply chain resilience.

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 4. Supplier Evaluation and Selection:
• Organizations assess potential suppliers based on
criteria such as price, quality, reliability, capacity, and
financial stability.
• Supplier performance is continuously monitored to
ensure compliance with contractual agreements and
quality standards.

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5. Procurement Process:

• The procurement process typically includes steps such as identifying

procurement needs, creating requests for proposals (RFPs) or
quotations (RFQs), evaluating bids, negotiating contracts, and
managing supplier relationships throughout the contract's lifecycle.

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 6.Contract Management:

• Contract management involves creating and maintaining legally

binding agreements with suppliers, specifying terms and conditions,
responsibilities, deliverables, and performance metrics.
• It includes ongoing monitoring and enforcement of contract
compliance.

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7.Negotiation Strategies:
• Negotiation is a key skill in procurement management, with strategies
aimed at achieving the best possible terms, such as price, payment
terms, and delivery schedules, while maintaining a positive supplier
relationship.

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8. Ethical Considerations:

• Ethical considerations in procurement involve ensuring fairness,

transparency, and compliance with laws and regulations.
• Ethical procurement practices also address issues like human rights,
diversity, and anti-corruption measures.

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9.Sustainability and Environmental Responsibility:

• Sustainable procurement practices take into account

the environmental impact of procurement decisions,
promoting eco-friendly products and minimizing waste
and emissions.

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10. Procurement Technologies:

• Modern procurement management often relies on technology,

including procurement software, e-procurement platforms, supplier
relationship management (SRM) tools, and data analytics for informed
decision-making.

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11. Global Procurement:
• International procurement and global sourcing are essential for
organizations operating in a global marketplace. This involves dealing
with cross-border regulations, cultural differences, and supply chain
complexities.

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12. Continuous Improvement:

• Procurement management emphasizes continuous improvement in

processes and supplier relationships to optimize efficiency, reduce
costs, and adapt to changing business needs.

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 PROCUREMENT MANAGEMENT
CONCLUSION:
Effective procurement
management is essential for
organizations aiming to secure the
resources they need to operate
efficiently, competitively, and
ethically. It involves a strategic
approach that considers both cost
savings and long-term value while
ensuring compliance with ethical
and sustainability standards
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9/3/20XX 21

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