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HomeProcurementEffective Procurement Practices for Mass Consumption Products

Effective Procurement Practices for Mass Consumption Products

Purchasing or procurement activities are a part of our daily lives and are often not given much thought by individual buyers. However, in an organisational setting, it can cause a massive change within the revenues and achievements of the Corporate Social Responsibility and value creation goals that a company sets for itself.

Mass consumption products have an inelastic demand which means that the demand is unaffected by the change in price. This implies that the customers will keep buying the products even though the price is high.

On the other hand, keeping the price of these products low is in the best interest of the companies selling them because it could give them a great competitive advantage and make the operations sustainable in the long run (Etzel, Walker & Stanton, 1997).

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Fabian Lee, DPMM
Fabian Lee has substantive years of experience in the Fast Moving Consumer Goods (FMCG) sector. His key experiences and responsibilities include procurement strategy, corporate and business strategies, key account management, and corporate communications. Fabian is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). He is currently completing a course at SIPMM Institute on Diploma in Purchasing and Materials Management (DPMM).

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