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Procurement planning is a clear road map for buying required resources for a task, activity or project. It is important because it ensures the timely availability of required resources to enhance timely implementation; Just In Time delivery.
The two factors which determine success of any Procurement Activity are : Cost of Procurement and Time. Both of these factors are subject to many variables within and outside the procurement organization. Control over and proactive policies to face situations so as to meet the targeted Cost and Time can only be achieved through proper and timely planning.
In order to secure the product or service in time or ahead of time required for the project, the procurement planing is very necessary.
Procurement Planning has a vital role linked with in time completion and delivery of products to the customers.It determines the success in business and the confidences of your valued buyers.
Sound procurement planning leads to business success. No short deliveries.Increased profits. Stable Prices.Business growth is obvious reward.
procurement planning is key to success of any project with profit and helps to complete the project in time.Project profit totally depends on material planning and budegeting
1- Cost reduction - economy od scale
2- Better cash situation
3- Get better payment terms
4- Better space usage
5- Get higher quality
Materials planning and budgeting functions are getting more and more important in an integrated materials management set up because planning for materials and working out a realistic budget not only help motivate people, but also serve as a control device.
Material planning is the scientific way of determining the requirements of raw materials components, spores and other items that go into meeting production needs within the economic investment policies. Materials planning function is thus a sub-system in the overall planning activity.
Procurement planning is vital for any entity be it profit or non profit making. It ensures that all departments in the organisations work together in order to come up with a plan if action that will save the company on costs that will be passed to the consumer. Procurement planning will definitely make or break an organisation.
Procurement Planning will help :
Not only with planning you will be able to work in a budget, but you be able to timely evaluate the possibilities, market and offers.
