3.2 The role of procurement

• What is the first main function of procurement?

  Identifying Needs
• What are the key steps involved in procurement?

  Identifying needs, supplier selection
• Procurement is critical for cost reduction, maintaining quality, and improving efficiency.

  True
• Stages in the procurement process

  1️⃣ Identify Needs

  2️⃣ Select Suppliers

  3️⃣ Negotiate Contracts

  4️⃣ Receive Deliveries
• Match the procurement strategy with its advantage:

  Competitive Bidding ↔️ Lower costs

  Negotiation ↔️ Customized agreements

  Long-Term Contracts ↔️ Price stability
• Negotiation in procurement allows for customized agreements and terms, but it can be time-consuming and complex
• Procurement is the process of acquiring goods and services needed for a business to operate effectively
• Steps in the procurement process

  1️⃣ Identify Needs

  2️⃣ Supplier Selection

  3️⃣ Contract Negotiation

  4️⃣ Receive Delivery
• What does the "Identify Needs" stage in the procurement process involve?

  Determining required goods
• Ensuring the correct goods are delivered on time is part of the "Receive Deliveries" stage.


  True
• What is an advantage of long-term contracts in procurement?

  Price stability
• Sustainable procurement prioritizes environmentally friendly products over cost.


  True
• Supplier reliability is a common challenge in procurement, as suppliers may fail to deliver on time or compromise quality.


  True
• Steps in the procurement process

  1️⃣ Identify Needs

  2️⃣ Supplier Selection

  3️⃣ Contract Negotiation

  4️⃣ Receive Delivery
• Effective procurement ensures businesses have the resources to operate efficiently.


  True
• Match the procurement step with its description:

  Identify Needs ↔️ Determine required goods and services

  Supplier Selection ↔️ Choose best suppliers based on quality and price

  Contract Negotiation ↔️ Agree on terms of supply and payment

  Receive Delivery ↔️ Ensure timely and correct delivery
• What are the key stages involved in procurement processes?

  Identify needs, select suppliers
• Competitive bidding lowers costs but may prioritize price over quality
• What is a key advantage of competitive bidding in procurement?

  Lower costs
• What are three key benefits of strategic procurement for businesses?

  Cost reduction, quality, supply
• What is the primary goal of supplier selection in procurement?

  Choose the best suppliers
• Effective procurement reduces costs and improves efficiency in business operations.


  True
• What is the main objective of contract negotiation in procurement?

  Agree on supply terms
• Negotiation in procurement can be time-consuming but allows for customized agreements.


  True
• Suppliers offer diverse options, allowing businesses to choose based on reliability and quality standards.


  True
• Sustainable procurement builds long-term partnerships with sustainable suppliers.
• What is a potential outcome of delivery and quality issues in procurement?

  Customer dissatisfaction
• Procurement is the process of acquiring goods and services needed for a business to operate effectively
• Choosing suppliers is based on factors like quality, price, and reliability
• Procurement is the process of acquiring goods and services needed for a business to operate effectively
• Effective procurement allows businesses to source materials at competitive prices
• Strategic procurement improves quality and reduces costs.


  True
• Long-term contracts may reduce flexibility if business needs change.


  True
• Long-term contracts in procurement ensure price stability but reduce flexibility if needs change.

  True
• Identifying needs is the first step in the procurement process.


  True
• Match the procurement function with its description:

  Identifying Needs ↔️ Determine the goods and services required

  Supplier Selection ↔️ Choose the best suppliers

  Contract Negotiation ↔️ Agree on supply terms

  Receiving Deliveries ↔️ Ensure timely delivery
• Choosing the best suppliers based on quality, price, and reliability is part of the supplier selection stage.
• What is a key disadvantage of competitive bidding in procurement?

  Prioritizes price over quality
• Suppliers in procurement ensure the availability of necessary goods and services.
• What do suppliers and businesses agree on during contract negotiation in procurement?

  Supply terms