How do you think certain decisions in Supply Chain Management are made? Things like choosing the right supplier, or the right materials; are not decisions made blindly. One needs a certain level of supply chain expertise to make these crucial decisions for one’s business. This is why Procurement and Supply Chain courses are extremely valued by organizations worldwide.

If you want to understand the role of Procurement in Supply Chain Management you have come to the right place. Here is how Procurement is important in SCM:

Selecting A Good Supplier

A business can only do some things. They need suppliers to provide them with resources such as raw materials, transportation, and more. Choosing the right supplier for your business needs is very important.

When you study Procurement, you understand the factors that need to be considered when selecting a supplier. Every business has different requirements and priorities so depending on the organization the factors will differ. But in a general sense, factors such as delivery time, quality of resources, and reliability of the supplier contribute to the final decision.

Contract Management

A certificate in Procurement and Supply Operations will cover various topics, including Contract Management. These contracts can be with suppliers regarding matters of quantity or cost or any other details that might be important for the business.

To ensure that both parties respect the contract and meet their obligations, the terms must be fair and reasonable. Studying Procurement and Contract Management equips you with the knowledge of how contracts should be drafted. This also includes learning about the various issues one might encounter and the ways to solve those with minimum legal costs.

Risk Management

The bigger the business, the bigger the risks. Every day you will need to make difficult decisions that can make or break your business. Risks such as delivery delays and material quality are common. You must be ready with an alternate plan to minimize losses in your business.

As a Procurement and Logistics Management professional, you must be good at risk management and mitigation.

Improvement In Quality Control

A lot is dependent on Supply Chain Management, including the quality of the final product that reaches the customer. It all begins with sourcing the right materials. When you learn Procurement you gain knowledge about all your options and how the quality of your product can vary depending on the raw material you choose.

So the only way you can improve your overall quality right from the start is when you understand each step of the process. Learning Procurement will help you choose the right source, materials, suppliers, equipment, storage method, and transportation.

Inventory Optimization

Proper inventory optimization and management are essential for saving costs and resources. Depending on the business type, the storage level and duration of the inventory will vary. Knowing how to properly optimize the storage availability to make the most out of the space and pay the lowest possible prices is crucial.

Having Procurement knowledge will benefit the business in more ways than one. A Procurement Manager can take full responsibility for the inventory and ensure that there is never a shortage of stock while also maintaining the right budget.

Learn Procurement With UniAthena

Supply Chain Management wouldn’t be a smooth functioning machine without Procurement. Explore UniAthena to find free online learning options to learn Procurement and its role in Supply Chain Management. In just 3 weeks you will be qualified to manage inventories and other responsibilities that come under Procurement and Contract Management. Enroll now!