PROCUREMENT MANAGEMENT

Procurement Management

Introduction3

Background of Procurement Management4

Problem Statement4

Positioning the Study: Supply Chain Management5

The Dynamics of Procurement Management7

Work definition of Procurement and Research Limitations9

Maturity Models of Procurement11

Strategic Procurement Management - Developing Competences & Professionalism14

Distribution of Procurement Activities18

Procurement and Innovation20

Conclusion21

Procurement Management

Introduction

This research would critically evaluate and synthesize procurement management with the perspective of complexity science for the order of absorbing and understanding the dynamics of procurement management as a specialized entity, with relation to the wider procedures of supply chain management, associating consumption and production, demand and supply. The research takes on and later established an approach of complexity science bound to the crucial notion of managing the contradictions and oppositions for the purpose of comprehending this intricacy of procurement management. Moreover, employing the demarcation amid endogenous and exogenous procedures, this research investigates regarding the way the technologies of procurement management travel into a complex endogenous procedure. Therefore, the research generates imminence into the degrees of determinism and degrees of freedom that operate simultaneously for the dynamics of procurement management; procurement management operates contrary to the efficiency and efficacy.

Background of Procurement Management

The answer to the question “How can we evaluate the dynamics of procurement management?” has been primarily explained by the procurement management that is going through discontent with the status quo, where the procurement organization was considered as an administrative, reactive, and insignificant part of the business by other entities in the organization. However, the potential, for the procurement organization for being important in the organization is argued to be immense. Procurement management, for the order of altering the situation of procurement organization, was informed that they must gradually precede the procurement organization toward increased significance and sophistication. This must be done by developing strategies which are lined up with the entire organizational strategy counting in the establishment of tools, systems, processes, and procedures. This procedure altered the standpoint of the procurement organization that facilitated the procurement entity in contributing to the employment of the idea of supply chain management.

Problem Statement

The literature claims procurement as allied to the strategic development of the organization and this claim has been persistent since several decades. However, a novel outlook has been given to procurement by globalization, outsourcing, and the organizations that operate on an international level, engaging the organizational supply and sources from the international markets apart from just the consumers served all across the globe. This implies that, with the outsourcing of nonstrategic and manufacturing activities by the organizations, the reliance of their supply base rises for input into their service offerings and goods, along with the “spend for labour internal and salaries” exceeded by “spend with the supply base”. The coordination concerns with the supervision of the supply markets (out-suppliers) and management of a vast supplier base (in-suppliers), for the order of complying with a number of internal stake holders having external supply. Procurement, due to the responsibility of procurement, has also been considered as a significant factor in realizing the concepts in the supply chain ...