Procurement of goods through carefully selected vendors that provide high quality of goods at high service level is a must for every company that focuses on generating value.
Critical Issues Facing Procurement:
- Purchase contracts and tenders on international level come with legal and cultural constraints that need to be addressed properly
- Stakeholders involved in procurement processes tend to have diverse interests that need to be managed through maintaining customer-centric approach
- Negotiating for competitive prices and win/win terms and conditions requires special skills from any procurement team
- Globalization and open markets have made the sourcing process extremely challenging in terms of purchasing products of high quality and comparing Total Costs of Ownership between potential vendors
- Understanding letters of credit can be a maze given the profound documentation processes that banks follow