Cost Optimization Parameters in Procurement

In procurement process, the main focus is on transactional efficiency and on optimizing process-related costs and inefficiencies throughout the purchasing cycle. The cycle begins with the identification of the need for a material and ends with its receipt. By addressing various such operational scenarios with focus on optimization parameters, the article underlines the importance of procurement cost reduction. Following are the cost aspects discussed in this regard:Optimization parameters with respect to Profit, Revenue, Cost & Inventory.Optimization measures taken by the industries in the form of examples