Procurement Management Concept 2022

Running head: PROCUREMENT MANAGEMENT
Procurement Management
Name of the Student:
Name of the University:
Author note:

PROCUREMENT MANAGEMENT1
Table of Contents
1. Introduction.........................................................................................................................2
2. Discussion...........................................................................................................................2
2.1. Background..................................................................................................................2
2.2. Role of procurement professional...............................................................................3
2.3. Strategic Procurement.................................................................................................3
2.4. Strategic role of purchasing function within the organisations...................................4
2.5. Sourcing options available to managers and understand the criteria that affect their
suitability................................................................................................................................7
2.6. Factors affecting procurement management and leadership.......................................8
3. Recommendations.............................................................................................................10
4. Conclusion........................................................................................................................10
References:...............................................................................................................................12

PROCUREMENT MANAGEMENT2
1. Introduction
Procurement has never played such an important role like it is playing in this
transition of current global economy (Chimni 2017). It has changes fundamentally itself in
the last decade. The concept of strategic procurement means completely different things in
different sectors and industries. Pursuit of individuals for the bottom line improvement would
notably influence the way in which the businessmen conduct their businesses in the local
market, the return that they generate from their ROI investment and the efficiency that they
deliver through the supply chain. This paper shall elaborate on presenting a critical review
and discussion on the role of strategic procurement in the contemporary organisations with
the global operations.
2. Discussion
2.1. Background
There are two sides of the coin when it comes to the notion of procurement management.
Firstly, on one side, there is the professional who is involved in all the procurement related
decisions, right from the first meeting to the last one. On the other side is the procurement as
“buyers” who are seen as the one playing clerical role with very little or absolutely no
involvement before or after the actual purchase. According to Landy and Conte (2016), “the
movement of the procurement staff to the more professional end of the scale has long been
predicted by the industry”. Here the question arises that has there been such change in the
procurement culture? Is procurement strategic yet or is it still in progress? It is indeed a great
question to take into consideration in the present economy. There is a considerable “noise”
regarding change in the market today. However, the reality is that majority of the people and
departments are too busy to change.

PROCUREMENT MANAGEMENT3
2.2. Role of procurement professional
It is to note that procurement refers to the process of finding out and agreeing to the terms
and attaining goods, works and services from the external source, often through a competitive
or tendering bidding process. Tay et al. (2015) has defined procurement as the process of
getting supplies, the process by which a firm buys the products and services that it needs
from the other companies. However, it is to note that some of the highly successful
companies often look at their CPOs (Chief Procurement Officers) as the ones to drive
proactively the global procurement strategy, sharing the duties and responsibilities with the
CFOs and COOs on the initiatives of value creation and deploying the global resources for
attaining the final supply chain targets. They are known as procurement professionals. They
are responsible of buying the activity of the business or the organisation. Their primary role is
to buy the goods and services for bringing out the best possible combination of price, service
and quality. It is also to mention that there are a total of three levels of procurement
professionals and they are- a) buyers, b) procurement officers and c) managers (Schapper,
Malta and Gilbert 2017). Buyer is an entry-level procurement professionals and he or she is
responsible of execution of purchasing contracts, issuing the buying orders and reviewing
change requests. Procurement officers are the most common types of procurement
professional. They manages the auctions, complex procurement transactions, tenders and
bidding. Some of the procurement officers are responsible of contract negotiation, issue of
large purchase orders and vendor management.
2.3. Strategic Procurement
It is to note that there are a total of two types of procurement and they are tactical and
strategic. Tactical procurement refers to the plan that is for short time goal. It is basically
used for achieving the short time strategic goal of a company. Here, the short term goals refer
to the goals that a company plans to attain within short period of time, i.e., a year or lesser.