Procurement and supply/contract management involves the purchasing of and/or the process of tendering for goods and services that an organisation requires to operate in addition to awarding contracts and ensuring they run smoothly.
Individuals working in this area will require an understanding of the complete supply chain from the identified need for a service or product within the organisations, a thorough knowledge of the provider market, the tendering, selecting and awarding process to relationship and asset management.
An organisation can spend more than two thirds of its revenue on buying goods and services, so even a modest reduction in purchasing costs can have a significant effect on profit.
The Chartered Institute of Procurement & Supply (CIPS) are a professional body which helps organisations achieve all-round excellence in procurement and supply management. They exist to promote and develop high standards of professional skill, ability and integrity among all those engaged in purchasing and supply chain management.