Do you believe that procurement dept in your company is important and have an effect on company profitability?

Yes, Procurement has high relevance in company's profitability. Today, strategic sourcing function explore opportunities to enhance the material productivity which directly adds to bottom line.

There are many ways we use in my company -

1. Low cost country sourcing

2. Localization

3. Re-sourcing of Min25% of the parts every year.

4. Value analysis / Value engineering - With the supports of Operations / Engineering team.

5. Annual Negotiation

These productivity levers helped us a lot in reducing the cost of materials by4 -5% a year and helped generating lots of free cash globally.

Also, Sourcing function brings in suppliers we can partner with for long term advantage.

Certainly. Purchasing can make the company or brake it.

Yes Procurement is very important to be a succesfull country, and the best way to pick up the right procurement manager is to get some manager inside the country that can deal, negotiate and get the best prices for your company. This is the case of Spainbox that offers procurement services in Spain

http://spainbox.com/mailboxes

Yes indeed.  Procurement after effective sourcing contributes a lot to cost saving and profitability of the organization.  A good procurement manager must have several comparable sources with same specs and quality from whom to choose on the basis of best prices and business terms.  

Indigenisation of sources is important but several countries do not have manufacturing capabilities based on latest technology or quality parameters.  Result: reliance on imports.  Cheap products that lack in required quality standards cost more than expensive products but with better quality.  For example a cheaper piece of production machinery will result in higher break-down time, loss of man-hours, backlog in production schedules, delays in suppliers (whether inhouse or to customers) and eventual loss of business.  Cheap always comes dearer in the end!  A good procurement manager will be able to determine the actual costs and which option to go for.

Yes, Procurement has high relevance in company's profitability.but company policy every company policy is diffrent and suitable for board mamber.........

Planning 

Planning 

any thing we need or Purchase or sale  if amount cross1000 any we need planning dont ignor this is just1000 amount no planning 

Procurement is the back bone of the company. I would say organizations cannot reduce their capital and operational expenditures without effective procurement policies and procedures. Procurement department help other business functions to purchase right product at right time with acceptable quality from right supplier at competitive price.

Procurement is going to impact everything in your company. It will have direct impact on the quality of your raw materials, the costs of your raw materials, the availability of resources for production/maintenance, define large parts of your environmental impact, have a strong impact on your strategic cost risks, and so on.