The Primary Objective Of Procurement In Any Business

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Procurement
The primary objective of procurement in any business is to acquire the required goods and services to meet the needs of the group that requires them. Accomplishment of this objective enables organizations to streamline their activities in a manner that reduces costs. In project planning and control, procurement involves finding the best cost-effective way of providing the required goods and services within the budget. It involves a series of procedures throughout the project life-cycle to ensure that all the required items are available to the project team for a successful completion of the project.
For a successful completion projects, certain products and services referred to as “procurement items” are required and must be defined based on the project requirements and delivered in time. Definition of project requirements is done during the planning phase and on-time and complete delivery ensures that the project team has what is required for the project to deliver and move to a successful completion. The project team develops the list and where they are supposed to be procured from. Generally there are two possible sources. The chart below demonstrates those two sources.
8572519050Project TeamExternal SuppliersManufacturing DivisionThe project team obtains the items from suppliers outside the project or organization.The project team obtains items from a manufacturing unit within the organization or project.0Project TeamExternal SuppliersManufacturing DivisionThe project team obtains the items from suppliers outside the project or organization.The project team obtains items from a manufacturing unit within the organization or project.
The whole process requires the project team to do prior planning in managing the ordering, payment, receipt, review...