Procurement is the "Real Value" Factor in IFM.....
Procurement, a key component of the IFM services framework,,refers to the strategic element of materials purchasing. A procurement team analyses the expenditure on goods and services and applies in the market knowledge & expertise to ensure optimum value for money while simultaneously enforcing strict quality adherence and transparency during the entire process.
Procurement involves, purchases planning, standards determination, specifications development, supplier research,value analysis,price negotiation, making purchases, and contract administration and monitoring.
This specialized service model emerged to provide a one-stop solution to clients who faced multiple challenges.With a professional procurement team in place, various wasteful situation can be avoided- there by significantly contributing to efficiency and profitability.
The Evolution
During the two world wars, this function gain increased focus due to the accelerated place at which raw materials, supplies and services needed to be obtained to feed the war effort. From the 1950s through the 60s, purchasing continued to gain stature as the technique for performing the function because more refined and the no. of trained professional increased. The emphasis became increasingly managerial-and with the introduction of major public bodies and enter-governmental organization such as the UN,procurement developed into a well recognized science.
The following decade saw emphasis on purchasing strategy as the need to obtained needed items from suppliers at realistic prices increased. The 1990s saw the first major ship in this sector as procurement started to become more integrated into corporate strategy. A broad -based transformation of the business function was set in motion, propelled by the development of supply managements software solutions to automate the source -to-settle process.
During the global recession of 2008-2009, procurement was ensconced at the very crux of the business strategy as the need to optimize the corporate spending became a matter of paramount importance. Post 2010, CPOs were recognized as important business leaders to began talking on border operation responsibilities
The Future:
Procurement is well on the way of becoming an 'exact' business science. By 2020, this sector will be driven by technology.
We are seeing massive strides forward in the development and application of technology,The use IOT devices is on the rise. From less then 4 Billion devices in 2014 to a project 25 Billion by 2020, these devices are being used in more areas.
As more devices get internet-enabled, the digitization of product will revolutionize traditional industries, these technological advancements are being manifested in IT product & services too. Business software is not only reducing requirements for manual human intervention- armed with artificial intelligence and predicative capabilities, it is enabling faster and more accurate forecasting, planning & resource allocation.
Advantage India
India is the most sought- after investment destination in all sector of globalized activities.E- platform like Onesource will play an extremely important role. such cost effective & time saving solutions are critical in a country which world's highest penetration of smart phones & other mobile devices. User of such devices rely heavily on technology to make purchases.
