NetSuite Procurement online training
Procurement includes various activities related to the procurement of goods or services.
What is the purpose of procurement? In general, our procurement team works to source
consumables that offer the most value at competitive prices. However, not all companies
define purchases the same way. Many companies think of procurement as encompassing all
stages, from gathering business needs and procuring suppliers, to tracking receipt of goods
and updating payment terms.
Procurement includes the goods and services necessary to support a company in its day-to-
day operations, such as procuring, negotiating terms, purchasing items, receiving and
inspecting goods as required, and keeping records of all steps in the process. Includes all
activities related to the procurement of services.
Sourcing is an important step in understanding the supply he chain as it helps a business
find reliable suppliers who can offer goods and services at competitive prices that meet the
needs of the business. This is true whether your company is looking for raw materials for
manufacturing, marketing service providers, or new office supplies.
Direct Procurement: It refers to procuring everything necessary to produce the final
product. For manufacturing companies, this includes raw materials and components.
Indirect Procurement: It usually involves the purchase of items that are essential to
day-to-day operations but do not directly contribute to the company's bottom line.
Procurement of goods: Broadly refers to the procurement of physical items, but also
includes items such as software subscriptions. Effective sourcing of goods generally
relies on good supply chain management practices.
Service Procurement: We focus on sourcing people-based services. Some companies
may employ private contractors, temporary staff, law firms, or on-site security
guards. You can include both direct and indirect procurement.