hello
you had nice questions
but as you see things are totally different and they are changing every day, across the globe, recently many companies in europe asia and america collapsed and the only way of survival is cutting costs strategies however 98% of companies and organisations world wide embarked on procurement and supply chain management as the leading cost cutting strategy. so may dear an effective procurement department whether foreign or is strongly needed for your companys survival
In the traditional sense, there is a significant difference in that purchasing merely reflects the act of acquisition, while procurement encompasses more elements of the supply chain (re logistics, transportation etc.).
here some of the answers for yo questions
1)AIMS OF effective PROCUREMENT
-cutting over input costs
- identifying world class suppliers
- maintaining of quality stardards thru quality purchase.
-ensuring continuous organisations operations thru steady supply of inputs
-buying all inputs needed in operations and productions.
-risk identification, assessment of its impact to the organistion
-disposal of under utilised resources like capital assests old equipments etc
2) ORGANISTIONAL STRUCT
- it will depend on yo but i advise that you use an incorparated branch of themain company in order to avoid to big taxes . the issue will be tax and other charges if you use another company or name as foreign procurement
3) function OF OFFICE
-theseare similar to the aims ofoffice
4)PLACE
-choose a strategic location near suppliers for easy monitoring and to avoid travelling costs.
5)LAWS
-the office must be stardardised with company laws and ethics, international procurement code and european laws of markets
6)RISK
as a procurement proffessional risk assessment and minimisation is one of the obectives,and fx of proc department
Based on the above, the importance of differentiating between purchasing and procurement while interesting is at the end of the day an exercise in futility. Therefore you need to look beyond the scope of functional distinctions to see and understand the broader role your profession plays in the day-to-day success of your organization.
Then, and only then will you be able to make the contribution in which all purchasing/procurement professionals are capable of providing.
FROM THE ABOVE U CAN IDENTIFY THE EFFECT OF PROCUREMENT ON THE ORGANISTAION
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