Unit 1 presents an overview of procurement management. This introductory unit is divided into 2 sections:
This section provides a basic understanding of procurement management. The Procurement function, the different perspectives in business and relations with other functions are discussed in the first portion, and the future trends of procurement management and the drivers of change are reviewed in the latter part of the section.
The first portion of this section looks at a framework to identify the main structural features of an industry that influence competition and profitability. The competitive environment, the organisation’s resource capabilities and its competitive priorities are then discussed. The section ends with an examination of how all these are linked to the procurement strategy and their impact on the procurement decisions.