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Procurement

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| The Future Role of Procurement in the Global Supply Chain | | Strategic Sourcing and Procurement | | Quiqueena Cintadita |
Presented to:
Tim Parker

Msc. Logistics and Supply Chain Management
December 10 2015 |

Role of purchasing has changed from year to year. Years ago, it was considered as a job to buy materials. Now, purchasing is an essential function, which is used as a strategy by companies (Monczka et al. 2010). There are many reasons leading to the changes, such as increase in competition between companies, rise in technology, and growth in customers request (Lysons and Farrington 2012). These changes make the relationship with suppliers more important and therefore transparency is needed. Nevertheless, new concepts are needed which involves technology to keep a track to organize a global supply chain (Monczka et al. 2011). Supply chains are mergers from all activities, processes, and functions, which involve all the suppliers to support organizations or companies to deliver the products and services that customers or consumers needed (Business Dictionary). As a function, purchasing took part in the process of supply chain and all the internal organizations that related with supply chain, such as engineering, manufacturing, marketing, finance, information technology, logistics, and legal. Firstly, engineering, purchasing can help the engineering to reduce the defect. For example, in one global electronic manufacturing company, the purchaser made a standard, which was right dimension and good quality for every pallet that the supplier would send. This had a good impact and the defects and damage of the shipping was declined. Second, purchasing helps manufacturing to choose the right supplier, and to provide an extra supplier to avoid delay process in manufacturing, which can lead to a big loss for the company. This is also

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