Question

What are the primary goals/roles and objectives of purchasing?'

Differentiating among purchasing and public procurement, and list the advantages of the e-Procurement System.

Identify the reasons favoring having multiple suppliers

Answer 1

Primary goals and objectives of of purchasing are :

1- Building and maintain relationship with suppliers.

2- Getting the best value on goods.

3- Coordinating relevant documentation.

The main difference between purchasing and public procurement is intent. Purchasing is tactical in nature ( I need something, I buy it) ; whereas procurement is strategic in nature ( I specify my needs, contact potential suppliers, compare bids, negotiate a contract, and then I finally buy it.)

Advantages of e-procurement system-

1- Reducing cost.

2- Process efficiencies.

3- Spending controls and compliance.

4- Visibility of spend.

5- Higher productivity.

Reasons for favouring multiple suppliers are:

1- Promote innovations.

2- Provides multiple procurement channels for goods and services.

3- Drive up competition and driving down price.

4- Displays your company's interest in and commitment to the economic growth of your community.

5- Allows access to the whole different network.