Procurement is an important aspect of production management.” Explain how an efficient procurement policy benefits an organization

Benefits of efficient procurement policy
(i) It is cheaper for the entity to obtain materials as they are able to obtain discount
(ii) Time saving – an efficient policy saves on the time required to acquire supplies
(iii) Quality – an efficient procurement policy ensures that only quality supplies are obtained
(iv) An efficient policy eliminates any delays in production due to unavailable raw materials and this profitability is not affected
(v) An efficient policy vets all the vendors/supplies and ensures that only the reliable supplies are awarded the tenders
(vi) An efficient policy ensures that only the minimum number of human resource is maintained in the procurement department thus eliminating unnecessary duplication of effort and cutting of wage cost.

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