Procurement, Suppliers

Topics: Procurement, Supply chain management, E-procurement Pages: 6 (1800 words) Published: August 3, 2013
Green procurement for green environment As a model company need to have its products, services, facilities and occupation not only in maximizing its profit by reducing costs, but with a vision to raise its benefits along with raising the benefits to the community around it. Green procurement become an important vision the companies and in the other hand to its customers. People would love to use friendly products that have no bad impact on the environment with high quality. Companies use sustainable procurement process will meet its customers need.

Recent issues about the economic, change of climate, powers, healthy and healthy foods that we face companies need to move towards high success by going sustainability. For example ‘ Arab Open University is an international university, who implemented the green procurement on its educational institution, its procurement department used to purchase a suitable kind of papers, cleaning items, healthy foods, and furniture to achieve the educational objective efficiency.

Procurement is the purchase process for products, services or facilities from outside sources. The concept of the procurement process is buying the business stuff (products, services and facilities) with high value and low cost, “quality along with quantity” as an objective for procurement. Procurement in the right place and the right time can provide to the institution, companies, government and even to the individuals a competition environment and it reduces the possibility of fraud cases. The difference between effective procurement “long term procurement” and regular procurement, the first will get plus advantages such gaining partners with long term or and Co-partner with suppliers which create committed and respect to each other. On the other hand regular procurement will only repeat the buying process without any plus advantages. The Advantages of procurement have been established by many leader firms around the world, and procurement is a important function in many several firms. Here we can give an example on the implementation of electronic procurement, Company that work with an electronic procurement system could minimize procurement for 8 to 15%. Many several firms are recognize the needing to set up the procurement process according to its advantages especially the E-procurement which reducing costs and rising the degree of competitive. Procurement supports a chain relationship between purchaser and sellers by doing more than just ‘purchasing. (Yi-Ming 2009 ,Chin-Fu 2009, Wen-Hsiung 2009) procurement involve strategic actions such as sourcing, negotiating with suppliers, and coordination with product improvement. Procurement is more than make purchasing decisions online, its process which relating the suppliers with purchasers into the procurement network. An significant subject that emerge from this major is that for efficient administration of the Supply chain, companies required to choose suitable relationships with suppliers and arrangement management processes such that they appropriate with nature of those relationships For example, in the case of competitive spot bidding, a firm wanted to set in place processes that will allow it to examine the market thoroughly and shop around for getting low possible prices. Cairo Amman Bank is suitable example right here. The procurement department in CAB wider bank n Amman, it has over than 1500 employee, CAB has a uniform to its employee renewed every year (Black suit, white shirt, and green tie, black belts and black shoes) three suites three tie three…etc for every employee which mean it required a huge budget in the past CAB used to buy a local products with high prices and high quality. CAB decided to purchase the uniform from china with high standers quality and very low costs the idea started with uniform but it ends with huge quantity of other products and stuff for the bank such as the annual gifts for the clients of bank. Now CAB...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Indirect Procurement Essay
  • Procurement Management Essay
  • Procurement Process Essay
  • international procurement Essay
  • Essay about Strategic Procurement
  • Supplier Relationship Management Essay
  • Procurement in Sri Lanka Essay
  • Procurement at Betapharm Corp. Case Essay

Become a StudyMode Member

Sign Up - It's Free