Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations or individuals, generally via a contract.
Simple procurement may involve nothing more than repeat purchasing. Complex procurement could involve finding long-term partners – or even 'co-destiny' suppliers that might fundamentally join one organization to another.
Procurement activities are often split into two distinct categories, based on the consumption purposes of the acquired goods and services:
a) Direct Procurement occurs in the manufacturing settings only. It encompasses all items that are part of finished products, such as raw material, components and parts. Direct procurement, which is the focus in supply chain management, directly affects the production process of manufacturing firms.
b) Indirect Procurement activities (also called Non-Product Related Procurement), concern “operating resources” that a company purchases to enable its business. It’s comprised of a wide variety of goods and services, from standardized low value items (such as office supplies and machine lubricants) to complex and costly products and services (like heavy equipment and consulting services).
Simacon specializes on Non-Product Related Procurement with extensive experience in the following areas:
Service and focus area's may include: