Procurement refers to a series of behaviors and activities by individuals or enterprises to obtain products or services from the supply market as resources required by individuals or enterprises under certain conditions in order to meet their needs or ensure the normal operation of enterprise production and business activities.

The common forms of procurement are divided into three: strategic procurement, daily procurement, and procurement out services.

Strategic procurement

Purchasing personnel (community managers) develop and execute plans for purchasing materials based on the business strategy needs of the enterprise. Through internal customer demand analysis, external supply market, competitors, supply base analysis, etc., based on benchmark comparison, they set long-term and short-term procurement goals for materials, procurement strategies and action plans required to achieve these goals, and find suitable supply resources through the implementation of actions, Meet the comprehensive indicators of the enterprise in terms of cost, quality, time, technology, etc.

Daily procurement

Daily procurement is the process in which purchasing personnel (Buyers) send demand information to suppliers in the form of purchase orders based on determined supply agreements and terms, as well as the company's material demand schedule, and arrange and track the entire logistics process to ensure that materials arrive on time to support the normal operation of the enterprise.

Procurement outsourcing

Procurement outsourcing refers to the outsourcing of all or part of a company's procurement activities to professional procurement service providers, while consolidating its core competitiveness. Professional procurement suppliers can assist enterprise managers in overall cost control through their more professional analysis and market information capture capabilities. Reduce the cost expenditures of the procurement process in enterprise operations.

Procurement outsourcing involves the interests of small and medium-sized enterprises, and most of them are unwilling to outsource their procurement business to other third-party procurement agencies. This has increased the difficulty for the development of the procurement outsourcing industry.

Outsourcing procurement can not only lower procurement costs, improve procurement efficiency, and provide specialized procurement services, but also reduce operational costs and improve procurement efficiency for enterprises as a whole. Enterprises can also focus all their intelligence and resources on core business, enhancing their competitiveness in the new competitive environment.