From the course: Supply Chain and Operations Careers: Certification Tips and Tricks (2019)

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Basics of sourcing and procurement

Basics of sourcing and procurement

From the course: Supply Chain and Operations Careers: Certification Tips and Tricks (2019)

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Basics of sourcing and procurement

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- In a perfect world, when you want to buy something, you'd always have lots of suppliers to choose from. All you'd need to do is place an order and your stuff would magically appear. But in the real world of supply chains, it almost never works that way. In this video, we'll look at purchasing and the kinds of things that go on in a corporate procurement department. First, procurement needs to know what the company is likely to buy. This is a type of business planning which could involve analyzing your purchasing history and looking ahead at your new product development. Then you need to understand where you can buy those things and how much it's going to cost. There are lots of factors that can come into play. For example, suppliers often charge a different amount based on how much you buy. You might hear this called a price break or a volume discount. But while a volume discount can be great, it might mean that you…

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