Procurement Department – 8 Key Roles & Strategies
The procurement department is where it all happens. Every important procurement process starts in this very area where the procurement manager and his/her team discuss their strategies and options. As an upcoming or experienced procurement manager, your role is very important, that is why for today, we are going to discuss what the procurement department is all about.
We’ll cover the roles and the strategies that can be used. There are about 7 key roles that are very important in the procurement department, so we’ll cover those as well.
After you are done reading this article, you should know those roles and possibly already have the right person in mind for procurement roles.
The Procurement Department Defined
Also called the purchasing department, the procurement department is where the procurement process starts and finishes. This is the place where the procurement manager discusses how the procurement process should go with the other team members. This is also where each member of the procurement team does their respective assignments, which is why it is very important for the company or organization that the procurement department must function well, with each member of the team coordinating without problems.
The procurement department is often headed by the director of procurement. He/She’s the one who gathers the members of the procurement department. The procurement director is also the one who assigns the tasks needed during the procurement process while checking to see if each process involved aligns with the strategies that the company wants for the procurement.
Finally, it is also in the procurement department where the final stages of the process are done. When the supplies are received in good condition, the suppliers paid, and contracts are negotiated, the procurement department takes care of all the necessary work to finalize the procurement process.
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The 8 Key Procurement Department Roles
Since we’ve nailed down what the procurement department does and what it is made of, it’s time to check what its 8 key roles are.
Understand that each procurement role is dependent on one another. If the procurement department misses one, then it may present problems for the procurement process itself.
To make things simpler, we at Procurement Tactics created this very simple table so you can recognize each role and its core definition. This table is also present in our Negotiation Gamechanger, so you should check it out today.
So without further ado, here are the 8 key procurement department roles:
Chief of Procurement
|Director of Procurement||
What is a procurement department?
A procurement department is a branch in any company that takes care of procurements
How to construct a procurement department?
To construct a procurement department, you need a Director of Procurement, some procurement managers or directors, and procurement specialists.
What are key roles in a procurement department?
The key roles in a procurement department are sourcing, negotiations, competitor analysis, and supplier performance monitoring.
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