Procurement

• Purchasing

  The process of buying goods and services.
• Purchasing EOS

  Occurs when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.
• Procurement

  Involves selecting suppliers, establishing the terms of payment and negotiating the contract.
• Supply chain


  Refers to all the businesses, people and activities that take part in the production process from the supplier to the customer.
• Logistics

  Refers to the movement of goods, services, information and money throughout the production process.
• Factors affecting choice of supplier

  • Cost
  • Quality
  • Range of products
  • Speed of delivery
  • Flexibility of supplier (eg. can it meet unexpected rises in demand)
  • Reliability of supplier
  • The suppliers reputation
  • Contract terms