History Procurement Business Q34301950

the history of procurement in business

Expert Answer

procurement’s historical focus in many organizations was toachieve the lowest possible cost from potential suppliers.Oftentimes these suppliers were pitted against each other in“cutthroat” competition involving three- or six-month lengthcontracts awarded to the lowest bidder. Once this lowest bidder waschosen, the billing cycle would almost immediately start again andanother low bidder would get the contract for the next severalmonths. Today procurement has a much more strategic orientation inmany organizations, and a contemporary procurement manager mighthave responsibility for reducing cycle times, playing an integralrole in product development, or generating additional revenues bycollaborating with the