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Procurement Methodologies for the Construction Sector

As competition in the construction market intensifies, establishing a procurement department is a key process for creating and managing contacts in construction projects. Purchasing activities cover the entire process from the determination of needs to the end of the project, and can become an ideal model for integrating the strategic direction of the organization.This article attempts to examine the best practices for procurement in the Construction sector. Let us differentiate the terminologies of PP Organogram.

The purchasing process refers to the purchase of goods, services and equipment from another organization in a legal and ethical manner. Purchasing involves managing the sourcing process, as well as the order management process. Procurement involves the strategic implementation of Purchasing.

Procurement’s active interaction with both internal customers and the external suppliers, through Supplier Relationship Management. The organogram outlines illustrate the difference between Procurement and Purchasing.

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Ting Houng Xue, DPSM
Ting Houng Xue has several years of experience in the specialised field of procurement for the construction industry. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). She completed the Diploma in Procurement and Supply Management (DPSM) on June 2020 at SIPMM Institute.

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