Procurement Function — Everything a Procurement Professional Should Know

Procurement Most Important JobFunctions

1. Sourcing

Sourcing is the start of every procurement process. You can never negotiate with a supplier without even finding one in the first place. Sourcing starts by checking potential suppliers in the market.

The collection of the supplier’s information is carefully gathered and monitored to ensure that they comply with the corporate policies. 

The suppliers are selected based on their qualifications, risk factors, price and quality of products, and policy compliance. One of the factors to control costs is to find the best and most reliable supplier in the market. 

2. Negotiating

Negotiation is one of the skills that a procurement professional must possess. Having great negotiation skills will allow you to get the best deals for the company. 

Procurement professionals will discuss all the stipulations on the proposals to come into agreement. Professionals should acquire the highest quality products from their potential suppliers that will suit their budget. 

Negotiation is a vital part of the procurement’s function. It affects the profitability of a business if they buy materials that are high in price. Organizations may overspend which will truly affect their revenue. 

before they purchase the needed materials,. Even the slightest decrease in the cost of materials will create an impact on its profitability. 

3. Contracting

The contracting phase happens when the procurement department is done evaluating supplier bids based on price, quality, and value. 

The contract will be awarded to the best suppliers in accordance with the requirements set by the organization. 

The company and the supplier both sign the contract as proof that they will do their obligations accordingly.

4. Monitors the supplier

The contracting phase happens when the procurement department is done evaluating supplier bids based on price, quality, and value. . 

If the procurement department or manager fails to monitor the supplier’s performance, it will greatly affect your supply chain. 

Their agreed time of date must be tracked to see if the invoices are paid promptly. Additionally, this function must keep track of all the records of transactions and the inventory to ensure a smooth flow of the process. 

5. Compliance with protocols

The procurement department must consider that before they purchase the needed materials, it must first align with the organization’s objective. It must also align its purchases with the compliance requirements.

The procurement department must look into protocols and budget approvals in ensuring that purchases are aligned with the organization’s policy. 

6. Utilizing technology

Organizations should learn to adapt to any technological change that will be integrated into the procurement process. This is to streamline and improve the efficiency of the organization. 

Using procurement and sourcing tools will greatly eliminate tasks that take too much time. 

Procurement Salary

The salary in the procurement industry depends on the competency level you are in. Additionally, salary is affected by factors such as education, skills, experience, and the country you live in.

According to Glassdoor, the total salary of a procurement officer is $87,501 in the United States. Of course, it will be different from other countries due to various factors such as living expenses. 

Procurement InterviewQuestions

Of course, when you want to enter the field of procurement, you will need to apply to the industry it belongs to. 

When you are prepared for the interview, there is a good chance that you will be accepted into an organization.

Most companies in the procurement industry do not use the same questions twice or thrice. The hiring manager will always try to cycle the questions depending on the level of experience of the applicant. 

The STAR method is a popular method employed by hiring managers and interviewers. This is to gauge how the applicant can answer critical situations to the best of their abilities. 

The trick to answering these questions is to know the scope of the position that you are applying for. In addition, you must take note to answer each question simply and concisely.