In every large and small Logistics enterprise, Procurement is the first step in the process of production and business of its services. This is also one of the important stages to ensure that enterprises have enough essential materials to serve the production and business process of services.
When making a purchase, businesses need to pay attention to a few pieces of information and purchasing lists. These common requirements are condensed and known as the “5 right”: right quality ingredients, right time, right quantity, right price, and the right source.

However, Procurement activities also have potential risks that can cause delays and reduce supply chain efficiency. More seriously, it can affect the reputation of the business. Aware of the above problems, CJ GMD introduces to you 4 risks associated with common solutions in Procurement that businesses need to grasp and develop an improvement and development plan.




1. Supplier or brand specification: One of the key issues of the procurement process is the supplier or product brand specification. If the specifications are not clearly defined, or the supplier does not meet these requirements, the procurement process may be interrupted and prolonged.

Solution: Set specific and detailed requirements about the supplier or brand they are looking for. These requirements may include accuracy, price, quality, delivery time, and warranty requirements. Making these requirements will help the process of finding the right supplier and making a more accurate decision.

2. Inadequate supplier selection: Without a complete and accurate supplier evaluation process, or if the selected supplier does not meet the company's requirements and standards, the procurement process will be severely impacted.

Solution: The company should ensure that they have searched and selected the right suppliers before starting the procurement process. This can be achieved by conducting research and evaluating suppliers before making a selection decision.

3. Insufficient contracting experience: Contracting is an important part of the procurement process, but if a company lacks experience or knowledge of contracts, it can get stuck in terms that do not fully represent the requirements and characteristics the company is looking for or contract risk.

Solution: The company should have specialists or contract attorneys to ensure that they have sufficient knowledge and experience to provide complete and accurate contract terms. These professionals can help ensure that contracts are executed properly and efficiently.

4. Administrative organization: Another major problem in the procurement process is when the company does not have the right administrative organization to carry out the process. Lack of management and organization can lead to loss of time, resources, and money, or inefficiencies in the procurement process.

Solution: The company should have a sound administrative organization and be able to ensure that the procurement process is carried out efficiently. The organization should ensure that there are sufficient resources and personnel to ensure that the procurement process is carried out as quickly and efficiently as possible.