For any business to run successfully, procurement needs to be considered. Procurement is the process of buying raw materials and goods that will be further made into a final product. For instance; if a company makes plastic bags, then the procurement department needs to buy the raw materials of plastic from different vendors and suppliers which will be further enhanced into a plastic bag. These are the 6 Rights of Procurement that will help you in your procurement career.
- Right Quality – The procurement department is first given a fixed budget to buy the raw material. It is the duty of the procurement department to make sure that the material is of the right quality that will further help the company to build its own final product.
- Right Quantity – The procurement department also needs to make sure that along with the right quality of the raw material, the quantity of the material is also set correctly. The fixed budget here usually changes depending on many factors.
- Right Place – This defines that the raw materials and goods land at the right place.
- Right Time – In order to avoid delays and heavy losses, the raw materials and goods must be delivered at the right time.
- Right Price – Since the company provides the procurement department a fixed budget, the quality and quantity for the materials needs to be delivered at the right price.
- Right Source – The right source is the term that defines the source of the raw materials from where it is purchased. This is why the procurement department needs to have good contacts and relations with the suppliers and vendors.
If you wish to get into procurement in your career, then consider enrolling for procurement and supply chain management courses for a better career.