CPP and CPPM Training course to define procurement broadly, “Procurement†is the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from “purchasingâ€, procurement involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods.
The Process Sourcing Analysis Model should be used by companies who are planning to outsource processes to one or more suppliers. This model allows buyers to understand which of their processes they should source and which would be best managed by their internal training organization. A sourcing team has two sets of internal stakeholders: the people who use the things that are bought, and the executives who manage overall costs. The people who consume the spend category will accept cost reductions as long as the process is: started in another department; doesn't mean a change in suppliers; and doesn't jeopardize a good relationship with the supply base, generate complaints or affect issues such as delivery reliability, service, or payments. If a competitive approach to sourcing isn't a viable option, it's worth considering what the alternatives are, such as collaborat- ing with suppliers:
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