Purchasing goods and services from outside vendors is a component of procurement. It covers tasks like choosing a supplier, negotiating prices, managing contracts, and carrying out purchase orders. Efficient procurement minimizes expenses while guaranteeing timely input availability. Procurement choices have an impact on lead times, inventory costs, and stock availability from the perspective of inventory. To achieve inventory optimization and supply chain resilience, strategic procurement techniques—like forming supplier partnerships, diversifying supply sources, and utilizing just-in-time (JIT) methods—are essential.
