One of the important processes in the manufacturing plant is procurement which is also a control mechanism of the flow of materials into the from the vendor or supplier. Half of the sales revenue depends on purchased materials manufacturing hence the profit potential of effective purchasing activities is huge compared with other practical management alternatives. You should pay less for what you buy or spend wisely.
Commonly consented that it is simpler to buy well than it is to sell well. Wise purchasing can reduce operational costs appreciably and improve profitability. The selection of an appropriate procurement technique is important due to complex decision-making process due to risks and uncertainties.
Importance of Procurement Techniques
Procurement techniques are crucial and should be determined at an early stage due to the impact on the procurement lead-time, and to ensure a realistic timeframe and the expectation for contract award is achieved.