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  • myton replied to the topic Procurement Management in the forum Project Management Knowledge Areas 8 years ago

    From previous events and projects, I’ve dealt with vendor interaction and raw material procurement. When I used to work at a café, I was in-charge of dealing with inventory and procuring the ingredients needed for the store: from the flour used for the baked goods to the espresso bags used. There would always be independent vendors who would come to the café and offer their products for us to serve and they would pitch their idea, their prices, and their desired share of the sales. Every couple of months, the owners and I would discuss whether or not we will update our sources for the products. Choosing which ingredients to buy depends on various factors such as taste, cost, and dependability. First, we have to ensure that the ingredient we get complements the other ingredients that come with what we serve. We also have to make sure that it will sell and that the customers like it. Second, we have to make sure that we are making money from the ingredient. If the cost of the raw material is high, then in turn the price of the product will also be high. From this, we have to see whether the resulting price is reasonable and if the customers will still buy it. We also have to make sure that we are making money from the products that we sell instead of the money going mostly to the procurement of the ingredients. Lastly, we always have to make sure that the vendor we chose to deal with is dependable with their deliveries and products. We always want to make sure that we keep the quality of our products to be at its highest possibility. We do this by making sure that we only have the best ingredients for our products. We also want to make sure that the ingredients get to the store in a timely manner so that there is time for it to be prepared.