Summary of Unit 5
Procurement management are concerned with the acquisition of capital equipment because they represent significant cash outlays and are often of strategic importance representing a significant opportunity to enhance revenue, manage assets and reduce costs.
This unit also discusses the challenges of services procurement, which requires the Procurement function to maintain a close personal relationship with suppliers, strong internal relationships and tremendous cross-functional cooperation.
The final section of this unit explores make-or-buy strategic decisions for any firm. That each of these decisions can be reviewed and reversed at a later date, as conditions warrant, adds to the challenge of maintaining an appropriate mix of in-house activities and procured goods and services, which requires effective Procurement management inputs in exploiting market opportunities and developing competitive sources.