Understanding the Meaning of Procure
Procure is a term that is commonly used in the business world, but what does it really mean? In simple terms, to procure means to obtain or acquire something, typically through effort or purchasing. It involves the process of sourcing, purchasing, and obtaining goods or services for an organization.
The Procurement Process
Procurement involves a series of steps to ensure that the right goods or services are obtained at the right price and quality. This process includes identifying needs, selecting suppliers, negotiating contracts, and managing relationships with vendors.
Examples of Procurement
One common example of procurement is when a company needs to purchase office supplies. The procurement manager will identify the needs of the organization, research suppliers, negotiate prices, and place orders for the necessary supplies.
Case Studies
Case Study 1: Company A needed to procure a new software system for their operations. After conducting market research and evaluating different vendors, they were able to procure a system that met their requirements at a competitive price.
Case Study 2: Government agency B needed to procure construction services for a new infrastructure project. By following a strict procurement process and evaluating bids from different contractors, they were able to select a qualified vendor and successfully complete the project within budget.
Statistics on Procurement
According to a survey conducted by the Institute for Supply Management, procurement professionals play a crucial role in the success of organizations. The survey found that 80% of respondents believe that procurement is a strategic function that can drive business value.
- 80% of respondents believe that procurement can drive business value.
- 65% of companies have a formal procurement strategy in place.
- 50% of organizations have seen cost savings through effective procurement practices.
