The role of procurement - AQAThe value of effective supply chain management
Procurement are responsible for the purchase and management of stock and supplies. Procurement have to decide which suppliers to use and hold a vital role in the supply chain.
A supply chain is the process of developing, sourcing, producing and providing goods and services to consumers. A supply chain can involve working with, and relying on a range of other businesses such as suppliers and shipping companies. Some businesses may have a relatively short supply chain, for example a local butchers shop. Some businesses may have a long supply chain, such as a business manufacturing electrical products and distributing them around the world.
An effective supply chain has a range of significant benefits for businesses, such as:
working with suppliers to ensure that key processes are running efficiently and cost effectively
getting goods and services for the best price and value
cut waste and unnecessary costs to create a streamlined process and fast production
More satisfied end consumers, resulting in less complaints and lower returns rates
Ultimately, these benefits are likely to lead to success and help the business reach their overall aims and objectivesA business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims.. An ineffective supply chain could cause huge issues, such as late deliveries and unsatisfactory products, this could impact the overall success of a business.
