Corporate procurement policies are developed to serve as guidelines for all the employees and especially for the whole procurement office staff. This is to make sure that everyone will comply and meet the goals of the company. The most typical of these procedures is the definition of procurement to ensure common understanding of the term. More importantly, it discusses how each procurement staff must give value to money.
Procurement involves huge sum of money because the process engages in purchase of goods and services. For this reason, negotiating skills, as well as corporate procurement policies, are among the essentials. These are to make certain that the company will be able to buy products or services that are either of low cost or reasonably priced. To do this, competition plays a big role. This is where businesses are invited to submit proposals to bid for the project. The one that offers the lowest price or the best terms will win it.
Corporate procurement policies also discuss the procurement strategies, as well as the roles that will be played by the employees responsible for the procurement. Each will have to attend to the needs of every business unit to be able to manage the business process well, placing high consideration in budget allocation. In addition, these policies adhere to the legal structure concerning procurement. The team has to see to it that all procurement activities are performed with lawful considerations.
The welfare of the suppliers, believe it or not, is also a part of the corporate procurement policies. Specifically, organizations expect the procurement team to deal with vendors fairly, professionally, and with integrity and courtesy. Harmonious relationship must be established, but the competitive approach must still be maintained to achieve cost savings and quality goods and services. No negotiations must be done outside the office and procurement policies.
To establish consistency of the procedures, the corporate procurement policies also discuss about the procurement process, from contracts to purchase orders, panels, evaluation criteria, company terms and conditions, and others. Even the social responsibilities of the business are talked about to be able to share with the employees the social issues that it wishes to address.
If the company is implementing Information Technology in the entire business process, it is sure to utilize electronic procurement, which is popularly known as e-procurement. Therefore, it is likewise mentioned in the corporate procurement policies.
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