Reducing Risks with Effective Procurement and Supply Management

Tingyu Liu

《Frontiers in Economics and Management》 3卷9期 (2022/09) Pp. 321-324

https://doi.org/10.6981/FEM.202209_3(9).0037

摘要

Procurement and supply management is crucial for the success of any organization. It refers to the identification, acquisition, and management of suppliers and resources that are crucial in the running of a firm. That is, procurement and supply management involves the evaluation, selection, and development of official contractual agreements and the management of existing firm-supplier relationships. Procurement and supply management ensures that commodities are adequately and properly acquired to facilitate the success and efficiency of processes and projects. Various steps are involved in procurement and supply management, including planning, selecting suppliers, contracting, ordering, expediting, inspecting commodities, clearing invoices and making payments, and maintaining relationships and records. Several challenges are experienced during procurement and supply management, such as risk management, supplier-related challenges, new technological challenges, errors in data, transparency issues, and dark purchasing. These challenges can be addressed by implementing strategies such as building strong relationships, adapting to change, and increasing agility.

關鍵字

Effective Management ； Identification and Selection of Suppliers ； Negotiations ； Contracts ； Challenges in Procurement ； Solutions ； Risks ； Training

參考文獻

Hong, Z., Lee, C. K., & Zhang, L. (2018). Procurement risk management under uncertainty: a review. Industrial Management & Data Systems.

Shareef, M. A., Dwivedi, Y. K., Kumar, V., Hughes, D. L., & Raman, R. (2020). The sustainable supply chain for disaster management: Structural dynamics and disruptive risks. Annals of Operations Research, 1-25.

Nyamah, E. Y., Feng, Y., Nyamah, E. Y., Opoku, R. K., & Ewusi, M. (2022). Procurement process risk and performance: empirical evidence from manufacturing firms. Benchmarking: An International Journal.

Bag, S., Wood, L. C., Mangla, S. K., & Luthra, S. (2020). Procurement 4.0 and its implications on business process performance in a circular economy. Resources, conservation, and recycling, 152, 104502.

Ageron, B., Bentahar, O., & Gunasekaran, A. (2020, July). Digital supply chain: challenges and future directions. In Supply Chain Forum: An International Journal (Vol. 21, No. 3, pp. 133-138). Taylor & Francis.