Answer to Question #313893 in Management for Modi

Question

‘Procurement of capital equipment is more strategic when compared to procurement of other equipment’. Do you agree? Explain from your perspective citing real time example

Answer 1

I agree that Procurement of capital equipment is more strategic when compared to procurement of other equipment. In the procurement of capital equipment, the Procurement function acts to a great extent in a service capacity as a gatherer of information, a process coordinator, a procurement consultant to management and finally a contract administrator.

For example, if a company needs a new supplier to provide an ongoing service for an indefinite period of time such as an email security solution the procurement process helps the company choose the supplier that best meets all of the business’s requirements at a reasonable price. It enables the business to avoid wasting time, money and valuable resources dealing with an inadequate supplier.