Procurement

There are many different fields of supply chain and procurement is a large field in this career. According to Cips.org, procurement is defined as "buying the goods and services that enable an organization to operate." Procurement is another word for purchasing, to make it more simple. In this area of supply chain there is indirect and direct procurement.

Direct procurement is the act of acquiring raw materials for production. The goods are usually purchased in large quantities and from a number of suppliers for the best price possible. The job of an indirect purchaser is vital for the company to remain in business. Acquiring the materials at the best price possible allows for the company to work efficiently while not losing a profit.

Indirect procurement is the act of purchasing services or supplies that are necessary for day-to-day operations. This can include new equipment, office supplies, or obtaining services. An indirect purchaser must assess what will most benefit the company to achieve 100 percent efficiency.

Both jobs are vital to a company and without them a company would not be able to run adequately. It's important to know the difference between these two jobs because they are completely different. They impact the company differently and one must know what their job requires of them in order to be successful in it.

Works Cited:
“CIPS - Chartered Institute of Procurement & Supply.” What Is Procurement and Supply? - The Chartered Institute of Procurement and Supply, www.cips.org/en/membership/why-join-cips/what-is-procurement-and-supply/.

-Lauren Jankowski