Procurement is a concept that refers to the process by which Suppliers they obtain means for certain economic groups or individuals, allowing to reach a level of satisfaction or utility in their production.
Sourcing allows the consumer needs of individuals and organizations to be met. To do this, there needs to be a supply of goods (either raw materials or manufactured products or in circulation) or consumption of services, which will be used to carry out supply activities.
From a commercial point of view, the supply allows to acquire materials necessary for the development of certain economic activities, being the suppliers those who facilitate said materials. On the other hand, we have to say that supply is formed as a basic and necessary process for the subsistence and achievement of people's satisfaction levels, being a fundamental part of these.
On the other hand, from the economic point of view, the supply can be part of the logistics organization of a company, forming the supply chain of said company.
For this to happen, there needs to be some control, cohesion and coordination between the points that link the chain: controlling the phases of the process of offering products from suppliers and the distribution of goods and services to the final consumer.
Stock management plays a fundamental role in this sense, since the supply allows the requirements and demands to be met in the required times. When this is fulfilled, the efficiency of the goods and services manufactured, together with their corresponding levels of demand They will be improved, making good deliveries of goods and services and proper customer service.