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Procurement Is Essentially Delivering Value Through Relationships

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'Procurement is essentially delivering value through relationships'

Procurement and Contract Management

This article is a literature review on the topic ' Procurement is essentially delivering value through relationships' . Procurement has been always considered to be the least among functions like Marketing, Finance, Human Resource Management etc...even though about 60% of the operating cost is for procurement and in cases like a manufacturing company it is even more. The recent Economic crisis has forced the top management to focus on this aspect of the business more carefully. This review explores the various aspects of procurement, in order to understand the concept of procurement some of the basic concepts like buyer and supplier, business relationships and customer value have been defined. Further I have tried to establish how procurement can add value to a business and to do this I have quoted examples from various business websites and journals. The review is also able to describe how a long term business relationship between the Buyer and Supplier can benefit each other both in terms of growth and financially. Every positive side has a negative side to it, I have been able to show some aspects of the negative side of it. Overall it can be concluded that procurement does deliver value through relationships.
Introduction
Procurement process is one of the most essential part of a business or a project. Through this process you are exposed to the potential market that is available to you in terms of business support. The dynamics of this process is such that it allows you to interact with as many businesses available in your region or outside of it. It is a well structured process where room for mismanagement is limited. This process not only supplies the agreed product or services, the supplier takes the collaborative role of a partner and journeys

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