Contents

• Introduction 5
• Procurement and its Function 5
• Role of Procurement in an Organization 6
• Processes involved in Procurement 6
• Procurement in Organization’s Supply Chain Process 7
• Strategic and Technical Issues in the Procurement Management 8
• Conclusion 10
• Works Cited 11

Description

This report is based on the following requirement -
Ramsey (2001) states that “It is possible for Purchasing to generate and protect competitive advantage, but it is extremely diffcult, and will tend to be the exception rather than the rule in all sectors of the economy. Consequently it may be stated, with confidence, that purchasing activities are intrinsically operational rather than strategic in nature.”
In response to Ramsey (2001), Mol (2003) counter argues, that “the field of strategic management has enough positive things to say about the strategic potential of purchasing to conclude that purchasing is strategically relevant. In fact, purchasing can even be said to have become more relevant in recent years as firms have outsourced more activities and increasingly look towards suppliers to create added value. This indicates strategic advantage not only resides within the firm but also between the firm and its partners.”
In a 2000-word report, critically appraise Ramsey (2001) and Mol (2003) arguments, and discuss the strategic relevance of procurement based on:
-  the purpose of the procurement function and its role in the organisation
-  the processes involved in procurement and their wider relevance to the organisation’s 
supply chain processes
-  strategic and tactical issues in the management of procurement