Procurement is an essential part of project planning. Yes, if you don’t have all the essential raw materials will you even be able to do something? Hence procurement falls under the most basic process in the project management and product building. But procurement itself comes with a lot of process and phases. Every organization depending on the industry they belong comes with its own separate procurement process. For example, pharmaceutical companies have a process which is way too stringent and has to meet all regulatory guidelines. Likewise, food & beverages too have strict guidelines to follow. Here are some general processes involved in procurement.Efficiency
Any long process involving a larger team will always turn out to be less efficient and the reason being- communication. Yes, the first team handling will give a brief to the next and the other understands half of what is said. Hence the same goes through the whole process and efficiency is completely affected. To ensure efficiency to your project management & procurement especially, you have to implement the right project guidelines.Transparency
For a critical business like pharmaceutical, transparency is the key to success. Meeting regulatory guidelines and ensuring safety of customers are very critical factors. Under the procurement management process, transparent operations should be ensured. Several professionals have challenging times in addressing these issues.Timely Delivery
When a customer asks for something, you need to deliver it on time. Any business which fails to do so will hardly survive in the market. Several businesses have failed to deliver on time and that is the reason why they could stay relevant in the market for long. For example, let us say a pharmaceutical company is waiting for its vendors to offer all the raw materials to begin production. Unlikely, it may not happen because the vendor is delaying. This will cause chaos in the relationship of the vendor and the manufacturer. In turn, the manufacturer cannot meet the market demand on time.Cost Effectiveness
It is not about spending more for quality and spending less on a larger quantity. Cost effectiveness is all about spending the right amount. Often, if you find a vendor who offers cheaper raw material, you end up going to him even though he/she is not meeting your specifications. But at the end of all, it matters how much you spend to get the right materials for the right cost. Procurement managers often analyze these factors before indulging in procurement.