Procurement Engineering At A Glance

Procurement engineering is a common term in the international project literature and the application of this thinking in company models has been very successful. Basically, in addition to having technical information and the basics of designing the equipment required by the applicant unit a ‘procuement engineer’ in a business organization should be fully acquainted with the principles and techniques of business and use software to convert raw data into processed information so that a better decision can be made based on it and the correct purchasing decisions can be formed in accordance with the conditions and specifications of each request.

Indeed, the function of ‘procurement engineering’ is to supply goods with specifications designed by the engineering unit of the organization through reputable and capable suppliers.  The term ‘engineering’ is based on systematic thinking and along with the quantitative and qualitative analysis of the document, it emphasizes  the technical criteria.

The combination of ‘the procuting’ technique beside the logic of ‘engineering’ creates ‘procurement engineering, the result of which increases productivity in the procurement operation. Creation of  updated, accurate, and consistent databanks from the prices of the components and equipment of the suppliers as well as calculation of the finished price of the products could provide the conditions for professional negotiations with the suppliers. Not all  benefits of an organization could be achieved  in the current complex competitive market and the rapid promotion of  suppliers' product levels. However, reducing the costs as well as maintaing the quality could be effective based on  scientific background as well as technical and systematic instincts to the procurement operation.

The main function of the procurement operation is after the process of selecting the supplier, compatible coordination and supervision on the performance of obligations of the supplier with the organization conditions up to the time of delivery of the components conforming with the requirements of the requesting unit, and possibly using erection and commissioning services of the suppliers. With the sharp engineering consideration and inventing the initiative and innovative methods, the procurement engineer can provide an appropriate basis for accomplishing the win-win situation teamwork.

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