CIMA E1 Syllabus E1. Operations management - Procurement - Notes ^{7 / 21}

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