Procurement and Supply Function in the Organisation Assignment - 4

Procurement and Supply Function in the Organisation - Assignment Example To improve the profile of the function in organisations, various strategies can be employed. These include partnering with other organisations, fostering achievement of an optimal operating model, prioritisation of supply chain risks, moving beyond cost savings and incorporating systems and technology. As regards, partnerships, it is important that the organisation engage early with the stakeholders. Early engagement with the stakeholders should be done in the planning stage to avoid to be effective. There is also a need for the organisation to establish policies and procedures to enhance efficiency and effectiveness in the implementation of procurement and supply (Government Procurement Development Group, 2010, p.1). The policies help in ensuring that the procurement procedures are accountable, editable, ethical, legal, economically effective and social and environmentally responsible. Procurement describes the process of purchasing goods and services. In practice, it involves the preparation and the processing of a demand of a commodity until the end receipts and approval of the payment for the goods and services. There is a variety of activities involved in the process. These include purchase planning, determination of standards, analysis of value, development of specifications, negotiation of prices, control of the stores and inventory, financing, administration of the supply contract and disposals (Government Procurement Development Group, 2010, p.1). Procurement and supply function in an organisation determines if the operations of the company will continue and as such it should be done in a way that creates savings or efficiencies and other sources of added value. Capital reduction is an opportunity of creating savings and increasing efficiency in procurement.