Procurement

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Interaction between operations and finance function

Procurement

Procurement considers the buying of everything within an organisation. It is a key element of strategy, and if it is handled well, it can support the core operations.

The finance functions interacts with procurement.

Interactions with the finance function include the following:

  • Establishing credit terms with suppliers

  • Establishing prices

  • Administering and approving payments

  • Recording order details

  • Maintaining inventory records

  • Budgeting

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