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Procurement process
Suppliers play a key role in supporting the manufacturing flow management process and the development of new products. Organizations with international operations may utilize global sources. It is ideal that a relationship is developed where both stakeholders benefit and there is a decrease in the lead time for the product’s design and development.
The purchasing function may create rapid communication systems, such as electronic data interchange (EDI) and Internet linkage to ensure speedy communication. The process related to acquiring products and materials from outside suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling, and quality assurance, many of which includes the task to coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new sources or programs.
