Understanding Procurement Considerations in Supply Chain Management

Abstract

ne of the most important considerations in managing supply chains are the procurement considerations. The subject research is the study of understanding procurement considerations in supply chain management. Supply chain management focuses on the ultimate consumer as the starting and ending point for all intra- and inter-company activities. If the end product or service offered to the consumer does not include the exact features, the accurate quality, the factual price and the precise timing of delivery, then the supply chain will be failed in its mission. Procurement considerations separate procurements into three phases: planning, sourcing and managing. These phases are further divided into eight distinct, but interrelated considerations. Pakistan Air Force is being selected as procurement organization to evaluate the understanding of procurement considerations. For conducting this research, the phenomenological paradigm, inductive approach and Qualitative methods (Semi structured/ unstructured interviews) are used. The secondary data was obtained from the PAF and DGDP websites. In addition, various sources like academic journals, textbooks, magazines, websites etc. were also used for secondary data collection. The researcher has carefully considered ethical issues involved in this research work and feel a great accountability towards people who were requested for help, access and co-operation. Certain factors are found which influenced and are manipulating variations in current procurement viewpoints, developments and procedures nowadays. However, based on certain limitations in the traditional model of procurement, certain findings like how E-Procurement differs from manual procurement is described and the future trends of procurement are suggested. For successful procurement in future, how company’s workflows and supply chain management system can benefit from eprocurement are recommended and it was justified that it is not simply a technology that can be plugged in, switched on and expected to yield steady and reliable returns. Conclusively, a good strategy only works keeping in view various procurement considerations, if due care is taken in its implementation.