Procurement is an important part of business operations, and there are many terms and definitions involved, and each area has its own unique meaning and interpretation. Here are 10 definitions related to procurement:
1.*Business: refers to an individual or organization that provides raw materials, parts, equipment and other resources for an enterprise. A merchant can be a manufacturer, wholesaler, distributor, or other type of business entity.
2.Procurement: refers to the purchase of raw materials, parts, equipment and other resources in order to meet the needs of production or operation. Procurement is a process, including demand analysis, business selection, inquiry, contract signing, order issuance, inspection and other links.
3.Chain: refers to all activities and processes from the merchant to the end user of the enterprise. **The chain includes procurement, production, logistics, sales and other links, which is the basis of enterprise operation.
4.Procurement contract: refers to the legally effective agreement signed between the enterprise and the businessman, stipulating the rights and obligations of both parties to ensure the smooth progress of procurement activities.
5.Procurement cost: refers to the expenses paid by the enterprise in order to purchase the required resources, including procurement**, transportation costs, customs duties, insurance, etc.
6.Inventory management: refers to the management and control of enterprise inventory, including raw materials, parts, work-in-progress, finished products, etc. Inventory management aims to ensure that inventory is adequate, timely, and cost-effective.
7.Risk management: refers to the process of **, evaluating and controlling possible risks in the procurement process. Risk management includes the control of commercial risk, delivery risk, etc.
8.* Business management: refers to the process of selection, evaluation and management of * * * business. Vendor management aims to ensure the reliability and competitiveness of vendors while reducing procurement costs and risks.
9.Procurement strategy: refers to a set of plans and plans formulated by enterprises to guide procurement activities according to their own conditions and market environment. Procurement strategies include strategies in terms of business selection, procurement channels, procurement methods, and risk management.
10.Electronic procurement: refers to the process of procurement activities through the Internet and other technical means. E-procurement can improve procurement efficiency, reduce costs, enhance transparency, and at the same time achieve collaboration and information sharing with suppliers.
The above are 10 definitions related to procurement, covering the aspects of business, procurement, chain, procurement contract, procurement cost, inventory management, risk management, business management and procurement strategy. These definitions are of great significance for understanding and mastering the basic concepts and practices of procurement management.