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procurement function

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Re: procurement function

Post  id2013 on Thu Aug 07, 2014 12:49 pm

Fransisco njuu,
Before going to the factors to consider for organizing the procurement function, you have first to cogitate the Options for adopting when organizing the procurement function. This will lead also to determine the factors for organizing the procurement function. For example, among of Five options known for organizing the procurement function, few them to mention such as Matrix Structure, Hierarchy Structure, Galax star/Cluster structure, Centralization/Decentralization structure.

So by taking up one of the above options you can have the following factors to take into account;-
-Nature of an organization that includes how big/small organization is. Is it scattered or have various branches including HQ, i.e globally, regional wise located?
-Nature of business operations of an organization. That is what is the principal business/ core business of an organization
-Nature of tasks of procurement function need to be performed.For instance if you adopt Matrix Structure as an option for organizing your procurement function, you refers only for specific project that will have different specialist in the project, so the presence of Procurement function will be able to coordinate and have joint meeting with other peer key specialist people on issue of procurement, including Engineers, and so forth. When the project finish up, then it is end of such organizing process.
-Policy of an organization your present is another factor
-Transaction Volume/Procurement Value/volume has been spent in procurement issues
-Organization strategy an organization has of which well organizing the procurement function will leverage towards the organization strategy to reduce cost and increase the profit margin

Those above are major factors, though other people may group them according to their wish but for my understanding it stands on those above.
I submit.


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procurement function

Post  fransisco njuu on Wed Jul 30, 2014 9:22 pm

guyz can you help me on this question
state the factor to consider in organizing the procurement function??

fransisco njuu

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