In this chapter, the role of procurement has been defined, and the importance of procurement in the perspective of supply chain management, how firms can choose a suitable supplier, and what the procedure for supplier selection is also have been described. Usually supplier selection or choosing supplier procedure varies from company to company, industry to industry and in fact from product to product—for example, if a company wants to buy some strategic or critical products, some procedures can be more detailed and time-consuming. On the other hand, if a company wants to buy some ordinary products or inexpensive products, such as stationary and paper, some procedures will be less complicated and less time-consuming. In addition, we have discussed the steps involved in a procurement cycle, advantages of e-procurement and covered different arrangements for purchasing.
KeywordsProcurement Supplier Ex-works Transport Monitoring supplier performance Supplier rating Limited tender Purchase request Price lists Purchasing Vendor Free on board Qualified supplier Forward buying Open tender Procurement cycle Purchase Order Cost and freight
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