Understanding Procurement Processes and Responsibilities

The video tutorial provides an in-depth look at procurement, its role in supply chain management, and key concepts such as purchase requisitions, purchase orders, and supplier management. It explains the procurement process, its strategic importance, and the connection with demand planning. The tutorial also covers procurement standards, types of procurement, and the importance of finding reliable suppliers. Through examples, it illustrates how procurement decisions impact business operations and profitability.

What is procurement primarily associated with?

• Businesses

• Non-profit organizations

• Government agencies

• Educational institutions

Which of the following is NOT a responsibility of the procurement team?

• Manufacturing products

• Researching suppliers

• Improving suppliers

• Converting purchase requisitions into purchase orders

What does the procurement process typically involve?

• Only the final act of purchasing

• Only the initial act of researching suppliers

• Both the initial and final acts of purchasing

• Only the act of negotiating prices

What signals the procurement team to initiate purchasing?

• Sales team

• Demand plan

• Marketing team

• Finance department

What is lead time in procurement?

• The time it takes to research suppliers

• The time it takes to negotiate with suppliers

• The time it takes for a supplier to deliver goods after an order is placed

• The time it takes to process payment

Who is responsible for determining the details of what, when, and where products are needed?

• Procurement team

• Demand planning team

• Sales team

• Marketing team

Which department often centralizes controls for the procurement process?

• Human Resources

• Sales

• Marketing

• Accounts Payable

What is one of the most important aspects of improving procurement processes?

• Increasing the number of suppliers

• Minimizing cost

• Reducing lead time

• Maximizing inventory

What does direct procurement refer to?

• Obtaining items for day-to-day operations

• Obtaining items required to produce an end product

• Hiring individual contractors

• Purchasing office supplies

Which type of procurement focuses on procuring people-based services?

• Indirect procurement

• Direct procurement

• Services procurement

• Goods procurement