Question

How does procurement play a role in the value chain process? Give an example.

Answer 1

The procurement is called the first gate when it comes to value chain process. The procurement helps in ordering high quality products in the market s it analyzed various vendors and suppliers after negotiation and analysis. When quality products are get through procurement process from the vendors, Then the final product manufactured by this quality raw material will also be very high. This overall process will be helpful in getting the high quality production. For an example procurement department set out the standard for the available product into the market. And when the organizations procure quality product for production then the output becomes very qualitative. So whole value chain process is therefore influenced by the procurement process.

The procurement processes are providing the key quality products that are then increase the value of the products that offered to the clients. The nature of the products that are procured by the procurement department will be helpful to improve the value of the products. So value of the manufactured products will also be improved

Therefore, the entry point of the value chains is the procurement. The company must identify the suppliers that are delivering quality products that lead to a high product quality in the firm.