The Science of Procurement

Procurement. Purchasing. Buying things. From what I’ve read and heard on the internet, with colleagues and from social media, the field of procurement is coming forward rapidly. It is widely recognized that procurement can add a lot of value to most organizations and hence the function is placed and secured on a higher position within many organizations. This website is here to help you establish a theoretical framework of your procurement activities, introduction to cost calculation, the procurement landscape and the selection and management of your suppliers. Last, but certainly not least, it gives you the framework on how to prepare negotiations.

Procurement is a giant leap forwards compared to purchasing. Where purchasing is in fact mainly all the actions associated with the actual acquisition of the goods, such as placing purchase orders, follow up on purchase orders and booking the receipt, procurement is the complete process and department behind it.

Key questions are:

  • What is the value of the goods?
  • Which alternatives do we have?
  • Which alternatives should be developed?
  • How vulnerable is our supply-chain?
  • What should products/services cost?
  • What should products or services add to our organization?
  • What is the cost structure?
  • How can we cooperate within the supply chain to enhance the total value of the supply chain?

As you can see, there are many questions to be answered – and this is just the tip of the iceberg. This website is developed to help you with identifying which questions you should ask – not necessarily answering all the questions you might have.

Welcome to the Science of Procurement – an interesting field of work where exact science meets human behavior, interchangibly connected by the world of economics around us.