Blessed Wasty jnr
Mar 11
Explain any four operational roles of procurement in organisation?
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Mar 11
1. Strategic sourcing: Procurement plays a key role in identifying and selecting suppliers that can provide the best value for the organization. This involves conducting market research, negotiating contracts, and managing supplier relationships to ensure that the organization receives high-quality goods and services at competitive prices.
2. Supplier management: Procurement is responsible for managing relationships with suppliers to ensure that they meet the organization's requirements in terms of quality, cost, and delivery. This includes monitoring supplier performance, resolving issues, and collaborating with suppliers to drive continuous improvement.
3. Contract management: Procurement is responsible for drafting, negotiating, and managing contracts with suppliers to ensure that both parties understand their rights and obligations. This involves ensuring that contracts are compliant with legal and regulatory requirements, monitoring contract performance, and resolving any disputes that may arise.
4. Risk management: Procurement plays a critical role in identifying and mitigating risks associated with the organization's supply chain. This includes assessing the financial stability of suppliers, monitoring geopolitical and economic factors that may impact the supply chain, and developing contingency plans to address potential disruptions. By effectively managing risks, procurement helps to ensure the continuity of the organization's operations and minimize potential losses.
2. Supplier management: Procurement is responsible for managing relationships with suppliers to ensure that they meet the organization's requirements in terms of quality, cost, and delivery. This includes monitoring supplier performance, resolving issues, and collaborating with suppliers to drive continuous improvement.
3. Contract management: Procurement is responsible for drafting, negotiating, and managing contracts with suppliers to ensure that both parties understand their rights and obligations. This involves ensuring that contracts are compliant with legal and regulatory requirements, monitoring contract performance, and resolving any disputes that may arise.
4. Risk management: Procurement plays a critical role in identifying and mitigating risks associated with the organization's supply chain. This includes assessing the financial stability of suppliers, monitoring geopolitical and economic factors that may impact the supply chain, and developing contingency plans to address potential disruptions. By effectively managing risks, procurement helps to ensure the continuity of the organization's operations and minimize potential losses.
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