What is Procurement? Detailed answers from Procurement from AZ

x Organizations, individuals, businesses, ... operating in the supply chain of goods, logistics want to learn more about processing?
X You want to know what activity includes? How is processing process?
X You want to know what processes and skills needed by a professional process in businesses today?

Proship.vn we answer all about what processing process is. At the same time, the work positions of the process in the business and the difference between Purchasing and Procurement are also pointed out for the stakeholders to properly understand this term.

What is Procurement? What are the activities?

Read the following content to know what processes mean and what activities include:

Procurement concept

What is Procurement? Procurement is purchasing, a process that includes planning, building strategies and maintaining purchasing activities of organizations and businesses.

The object of the purchasing activities are raw materials, equipment, machinery for production, or goods and services necessary for the business of the business. Purchasing is the first activity in the supply chain of goods and logistics.

What is Procurement? Detailed answers from Procurement from AZ
Procurement is a purchasing activity of organizations and businesses, including planning, strategic development and maintenance of purchasing activities.

Procurement activities

Procurement with many activities such as:

  • Planning planning;
  • Filtering and searching for sources of goods for needs (sourcing);
  • To list and select Supply Partners (Selection);
  • Negotiate and agree on cooperation conditions (Negotation);
  • Contract cooperation (Contract and Transaction);
  • Monitor and control the supply quality of partners (Supplier Performance Management);
  • Maintain the stable operation of the supply chain.
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The difference between Purchasing and Procurement

What is the difference between Purchasing and Procurement? That is:

Purchasing Process
Scope                   Shopping transactions. Shopping process.
Target Perform effective trading transactions. Optimize price optimization, and product quality. Manage the entire shopping process effectively. Optimize long -term value such as supplier management, risk management, overall efficiency.
Time                         Focus on shopping to meet short -term needs and handle specific transactions. Focus on handling long -term shopping needs. Requires the strategy, continuous management plan of the supply chain.

Position of work and skills needed

Along Proship find out the work position and the necessary skills of the process:

Procurement work positions

Procurement jobs in the business:

Procurement staff

Procurement staff must ensure adequate supply of goods and services for the company's production and business activities are always stable.

Procurement Specialist

Procurement Specialist should ensure the necessary materials and services to maintain and develop production of the company originating from reliable suppliers according to the agreement terms.

Procurement Executive

Procurement Executive will monitor the company's strategy and shopping plan. At the same time, it is also determined that the business needs, developing the evaluation and bidding process to help suppliers meet their products and services.

Procurement Supervisor

Procurement Supervisor will monitor a group of purchasing personnel. It is necessary to focus on developing shopping strategies, actively cooperating with suppliers, cost analysis, logistics management and seeking to reduce purchasing costs.

  What are you interested in What is the role and characteristics?

Senior Manager Procurement

Senior Manager Procurement will support the director of shopping, developing and implementing the shopping plan. Improve the efficiency of shopping, supplier manager and risks related to suppliers.

Procurement Manager

Procurement Manager is the manager of the purchasing department, which will manage the purchasing process of the company and implement, monitor all activities of the department.

Assistant Procurement Manager

Assistant Procurement Manager will help the procurement manager manage the purchase activities and perform the tasks required by the shopping director.

What is Procurement? Detailed answers from Procurement from AZ
Procurement always plays an important role, so the processor (no matter what position) needs to be equipped with the necessary skills.

The necessary skills of a process

Procurement needs to be equipped with the following skills:

Strategic thinking ability

Procurement's strategic thinking ability is to ensure quality purchases and reasonable prices to reduce costs and increase profits, so strategic thinking skills are very important.

Market research

Skilled Procurement will analyze all data collected during the research and identify opportunities and how the company can save costs with the best value.

Good negotiation skills

Must negotiate to achieve agreements that are beneficial for both parties with the supplier. But it is necessary to listen and ask the correct question so that everyone understands the same.

Risk management

Good shopping experts know how to evaluate, evaluate and manage risks related to the purchasing process. Including understanding possible risks such as compliance, supply chain interrupt, supplier or fraud.

Adaptability

Procurement must be able to quickly adapt to new trends and unpredictable situations. Meaning, it is necessary to flexibly adjust the purchase decisions to suit the needs of changing.

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Solving conflicts

Procurement needs to know how to resolve conflicts effectively to help maintain the relationship and ensure the purchase process is convenient.

How is the process of processing process?

Procurement process includes the following steps:

Step 1: Needs analysis (Needs analys)

Identify and analyze the needs of the organization based on products, services, or materials needed to maintain and develop business activities.

Step 2: Planning (Planning)

Proposing and planning shopping activities to meet the needs of the organization. Including determining the supply, bidding construction and establishing selection criteria.

Step 3: Select the Supplier (Selection)

Bidding, finding appropriate suppliers based on requirements and criteria. Including the evaluation and comparison of proposals, negotiations on contracts and implementing the purchase process.

What is Procurement? Detailed answers from Procurement from AZ
Procurement purchasing process is done step by step, requiring supervision, monitoring, regular inspection, ...

Step 4: Negotiate and make contracts (Contract Negotation)

Making contracts and agreements signing between the two parties with the terms and transaction conditions such as price, delivery time, location, warranty period and additional payment terms, additional six -six uniforms if there is a problem arising outside the contract.

Step 5: Manage relations with suppliers (Supplier Performance Management)

Establish and maintain good relationships with selected suppliers. Including the purchase order, monitoring the quality of goods/services, risk management and solving problems arising during the supply process.

Step 6: Control and evaluate effectiveness (Performance Evalution)

Monitor and control the procurement process, ensure compliance with processes and standards, evaluate efficiency and improve future shopping process.

What is processing and knowledge related to the process operations that we have just conveyed, hoping to really need it for individuals, organizations, businesses specializing in buying goods ... Please continue to accompany the news page about logistics - import and export of Proship Logistics and contact 0909 344 247 when needed support for multimodal transport services.

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