Advanced Business Process Management – Procurement Type Written Assignment

Advanced Business Process Management – Procurement Type Written Assignment

In 3-4 pages, explain how procurement type indicates whether a material is produced in house (via the production process), obtained externally (via the procurement process), both, or none. Give examples. (Trading goods and raw materials are obtained externally. In contrast, finished goods and semi-finished goods are produced in house.) Be sure to cite your sources, Wikepedia is not an acceptable source. Be sure to use APA format.

Be sure to cover that the procurement type can be set to none for discontinued materials and set to both for materials that a company normally produces in house but does not have the resources to produce at the current time

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Procurement Types

The process of procurement depends on the nature of the products. The production of commodities can either be internal or external. Acquisition refers to an external process, by which an organization finds and agrees to terms of acquiring products from an external source. The process is done through competitive bidding or tendering. The procurement process allows organizations to compare quality, quantity, time and location while they acquire products at best possible prices (Meyr, Wagner & Rohde, 2015).

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