Procurement is obtaining or purchasing goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies must solicit services or purchase goods, usually on a relatively large scale. It can also include the overall procurement process, which is critically important for companies leading up to a final purchasing decision. Companies can be on both sides of the procurement process as buyers or sellers though here we mainly focus on the side of the soliciting company.
Read About Supply Chain Management
How Procurement Works
Procurement and procurement processes can require a substantial portion of a company's resources to manage. Procurement budgets typically provide managers with a specific value they can spend to procure the goods or services they need. The procurement process is often a vital part of a company's strategy because the ability to purchase specific materials or services can determine if operations will be profitable.
What Is a Requisition, and How Does It Work?
A requisition formally requests a service or item, typically using a purchase requisition form or another standardized document. The requisition process is a standardized way of keeping track of and accounting for all requisitions made within a business.
“A requisition initiates the request for a specific action and also records that action for subsequent reporting needs. For example, employees within a company would use a purchase requisition if they needed additional supplies”
Opportunities for graduates:
Opportunities for graduates of this program exist in government, public and private sector.
“The program aims to train students to incorporate current trends in the profession. Owing to this, the demand for personnel to work in Purchasing and Supplies department has increased and is projected to rise in line with vision 2040"
Read About Supply Chain Management
How Procurement Works
Procurement and procurement processes can require a substantial portion of a company's resources to manage. Procurement budgets typically provide managers with a specific value they can spend to procure the goods or services they need. The procurement process is often a vital part of a company's strategy because the ability to purchase specific materials or services can determine if operations will be profitable.
- Procurement is the process of purchasing goods or services, usually in reference to business spending.
- Business procurement requires preparation, solicitation, and payment processing, which usually involves several areas of a company.
- Procurement expenses can fall into several different categories, depending on the procurement demand.
- Competitive bidding is usually a part of most large-scale procurement processes involving multiple bidders.
- The strategic procurement process is different from purchasing, which is transactional.
What Is a Requisition, and How Does It Work?
A requisition formally requests a service or item, typically using a purchase requisition form or another standardized document. The requisition process is a standardized way of keeping track of and accounting for all requisitions made within a business.
“A requisition initiates the request for a specific action and also records that action for subsequent reporting needs. For example, employees within a company would use a purchase requisition if they needed additional supplies”
Opportunities for graduates:
Opportunities for graduates of this program exist in government, public and private sector.
“The program aims to train students to incorporate current trends in the profession. Owing to this, the demand for personnel to work in Purchasing and Supplies department has increased and is projected to rise in line with vision 2040"