Marketing Procurement

Posted by adairsawyer on April 25th, 2013

Marketing procurement has to do with operating resources that a company invests in to keep its operation going. It can have anything to do with items of low value like office items. Procurement makes sure that the products are provided to meet the needs of whoever is purchasing the goods. Any purchase decision made on behalf of the company will have other factors measured in along with it. Procurement can be direct and indirect.

Procurement strategies need to be studied well so that your next move will be to your company's benefit. Procurement, whether it's public or private, could lead to your entrepreneurial success if you do things right. You have to know when you have to select the right procurement strategies. It should not be a bandwagon thing that you decide on impulse. With today's modern, tricky economy, you have to make every turn count.

Procurement is the acquisition of goods or commodities by a company, organization, institution, or a person. This simply means the purchase of goods from suppliers at the lowest possible cost. The best way to do this is to let the suppliers compete with each other so that the expenses of the buyer are kept at a minimum.

Procurement usually involves a bidding process in which the bidders or sellers quote their prices and the buyer accepts the lowest possible bid. This is the most efficient and cost effective method of procuring goods or services if the quality of the goods meets the buyers' requirement. You need a vision for your procurement group for two main reasons. One is to act as motivation for the people in procurement so that they are inspired to aim for outstanding results day after day. The other reason is to establish the importance of procurement in the minds of other departments and show them how procurement can help them to achieve their goals and objectives.

A procurement strategy enables decision makers to understand longer-term goals, such as realising value for money and encouraging supplier improvement, and to consider these goals when making procurement decisions. The strategy should describe how procurement procedures can provide incentives for the approved organisation and its suppliers to continually innovate and work to improve people, practices, goods and services.

A procurement strategy that outlines the context, objectives and performance measures for a programme of activities creates a level of certainty and predictability for the approved organisation. It also provides a channel for clear communication with potential suppliers and for other purchasers in the market, including other approved organisations. An approved organisation will use its procurement strategy to document its procurement objectives and how it intends to achieve them. Suppliers will be interested in this strategy as it will contain information they can use to plan investment and services to better meet the needs of the approved organisation. The strategy will also form the basis for sharing information about procurement programmes with other approved organisations.

An expert on Marketing Procurement can give you the insight you need on procurement strategies , the process of acquiring goods, works and services.