The procurement cycle comprises key steps that a company should make in order to obtain products or services. Management should understand that this process is becoming more of an art instead of an automated process. It is the road to success for responsible management, when handling public or corporate funds. It starts from identifying the correct needs of the company, to the final step of granting the product, or contract, to a certain supplier, all these, ultimately leading to increased profits.
By definition, procurement represents the process of obtaining goods and services from preparation and processing of a requisition to the approval of the invoice for payment. As Robert Monczka specifies in the book Purchasing and Supply Chain Management, purchasing is responsible for acquiring all the materials needed by an organization, and it is the function responsible for issuing purchase orders and initiating the flow of materials.
“Measurement is the first step that leads to control and eventually to improvement.” – H. James Harrington, CEO of the Harrington Institute.
Across the years, companies have traditionally and exclusively measured their success in terms of financial achievements. In the rapidly emerging business world it appeared the need for a much broader range of measures, in order to keep companies and organizations on track into achieving their goals. This is how the fulminating interest in dashboards, scorecards and KPIs can be explained, and Procurement and Supply Management is no different.
In addition to focusing on generating the best ideas through research and analysis, marketers need to also focus on the process of deploying these ideas into the market, making sure they reach the consumer in a timely and effective manner. To describe this process, the term employed is the Marketing Supply Chain, which consists of the people, processes and technology that make possible the creation and delivery of the marketing artifacts to the target consumers.