Procurement In Project Management Essay

866 words - 4 pages

Procurement in the main stream of the business world is to ensure organizations has the proper necessities for the selections process of the suppliers. Procurements within an organization helps to develop the right tools necessary when selecting and maintaining performance criteria, speciation’s and defines the terms and conditions in an organization. As set forth by the company the procurement area of the company conveys and develops the necessary values and mission with an in organization. In looking further into the importance of procurements we can determine the alternative methods to procurement, the methods necessary to keep procurement in order and the overall value of procurement with in management project.
Procurement within a project can help organizations create and develop the right elements necessary to obtaining goods and services. In which, allows organization to help streamline the buying process, while making sure the good and services adhere with the market conditions at the present time. As stated by Sollish and Semanik (2012) “Supply and demand continually drive process up and down. As economic conditions change, demand increases or declines, generating shortages or excesses in supply or decreased demand (or combinations) generally lead to reduced prices.” Understanding the market gives the organization the knowledge necessary to making the right buying decisions. Ultimately, the organization has the buying power to take advantage of reduces prices within the markets. Also, gives the organizations the ability to negotiate prices with the suppliers to reduce or maintain cost. Having the right procurement process can thoroughly examine and define the requirements and understand the company objectives and understand the benefits of procurements tools to not only analyze the cost/prices and negotiations. Procurement gives the organization the stability to make decisions based on planning and operational objectives which is important for the organization.
Procurement is a purchase of services, goods or works from an outside source. In addition, procurement gives an outlook of market conditions, economic conditions, and market complexity in order to purchase the necessary product and product substitution for the organization. There are many reason procurement will not fade. However, there is a new way that organizations are cutting cost on procurement itself such as using a system such as e-procurements. E-procurement allows companies to forgo the written proposal bids cutting down on paper cost by submitting bids electronically. As stated by Heaton (2012) “While the typical procurement process has been around for decades, three states are breaking the mold when it comes to how vendors can respond to RFPs. Montana, Utah and Colorado are experimenting with allowing companies to submit their project...

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