The literature review on procurement

Running head: LITERATURE REVIEW ON PROCUREMENT
Literature Review on Procurement
Name of the Student
Name of the University
Author Note

LITERATURE REVIEW ON PROCUREMENT1
Procurement refers to the process that is undertaken for the selection of vendors, for the
establishment of payment terms, for engaging in the process of strategic vetting, for the selection
of various types of commodities and raw materials that are required in the process of production,
for the purchase of goods and for the negotiation of contracts (Hartmann, 2018). Procurement by
and large is quite an elaborate process and there are many factors or aspects that need to be taken
into consideration in order to arrive at a full-fledged understanding of the subject matter (Hou et
al., 2017). This assignment engages in a detailed review of literature on the process of
procurement and its many different dimensions. The key features of the procurement process are
highlighted in the literature review and the paper concludes with an analysis of the gaps that exist
in the review of literature.
Hou et al. (2017) has undertaken research on the historical evolution of procurement as a
process, and of the supply chain management process as a whole. It is argued by Hou et al.
(2017), that the evolution of the system of physical distribution to the system of logistics and
from there to the process of supply chain management, including procurement is a subject that is
seen to be of interest for scholars from around the world. The historical evolution of procurement
is a subject that has been researched upon and analyzed by Hou et al. (2017) from the perspective
of sustainable development. In the view of the researchers it is the theory of material flow that
needs to be brought into play in order to understand how procurement has evolved from being a
physical process to begin with, to being far more complex and dynamic in character in the
present day and age. According to Hou et al. (2017), procurement in the most basic sense of the
term refers to the procedure that is adopted for the procurement of raw materials and other items
needed for manufacture and production, the negotiation of key contracts with suppliers and

LITERATURE REVIEW ON PROCUREMENT2
distributors, the implementation of these contracts and the negotiation or resolution of disputes
that can arise upon the implementation of the contracts.
The process of how suppliers ought to be selected as part of the procurement process and
the supply chain management process as a whole is a subject which has been researched upon in
an in-depth manner by Mavi and Goh (2013). According to the researchers the supply chain
management system is one that is quite elaborate and there are many factors or aspects that need
to be taken into consideration in order to arrive at a thorough understanding of this system. When
it comes to the selection of the best supplier or the correct supplier in particular, some of the
factors which need to be taken into account is the right qualifications, the right experience, the
right time and place for the supplier to be functioning at, the right price for which the supplier
can be negotiated with for the provision of raw materials, and the right quantity and quality with
respect to such provision. In other words it is argued by Mavi and Goh (2013) that the supplier
with whom a contract is signed is a person who needs to be familiar with the process of supply
chain management, who has been working in the field of supply chain management for quite
some time and who has the experience and the authority that is needed in order to engage in the
supply of raw materials at the best prices and in the right quantity. By taking all of these factors
into consideration, Mavi and Goh (2013) argue that the supplier who is chosen for procurement
activities or for any activity related to the supply chain process, will be the right choice for the
business.
Hartmann (2018) has researched on the importance that strategic alliances are seen to
play in the domain of supply chain management. In the view of Hartmann (2018), supply chain
process and the people who are involved in activities pertaining to the supply chain have to go
out of their way to ensure that operations are conducted through the use of strategic alliances. In