Rapid change and development in technology is causing businesses to face greater uncertainties. Increasing competition makes it necessary for the capital to be used more efficiently and to transfer business activities to suppliers that make them better and cheaper than themselves.
It has become difficult to recruit and retain intellectual capital that is needed today, professionals with management knowledge and technical expertise in planning, developing and operating more effectively. Increasing diversity makes it difficult to choose the right technology and make a purchase decision. Many senior executives who understand this strategic importance are rethinking their risks and responsibilities in this area and many businesses plan to focus on their own capabilities without developing competitive advantage. They are reducing their activities in some areas and they are going to apply to outsourcing. To go down in size to the extent that an operator concentrates on his capabilities requires not shrinking as a market share or target but shrinking physically. Departments that are not as competent as the competent are terminated and the departments that are doing these tasks are outsourcing (utilizing outsourcing) and specialized firms are made.
The most important reason for outsourcing or global resource utilization is that small firms have the resources and capacity to deliver competitive advantage while meeting priority and supportive activities.
Since an organization, a client of a corporation can be a supplier of another organization, supplier relationships and customer relationship management are on the agenda. Calling suppliers and customers as stakeholders / partners is due to want to see them as “partners” in a sense.
When looking at the activities required by the procurement function; quality security, storage and depot placement, surveillance and acceptance, transport into business, negotiations, finding supply, planning needs. Responsibilities are; determining the boundaries of the supply source, aggregation and continuous extraction. It is a way of guiding new sources of supply and coordinating with supply sources. The main purpose of the procurement function here is; we can say that we support manufacturing or resale organizations by providing affordable purchasing at the lowest total cost.