A Reflection on Procurement Process Management and Methods for Cost Control

DOI: https://doi.org/10.62517/jbm.202409209

Author(s)

Jingwen Gao

Affiliation(s)

Financial Management Department, Suzhou Branch, Bank of China Limited, Suzhou, Jiangsu, China

Abstract

Cost control in procurement is a paramount objective for commercial banks, as there are various methods available to lower procurement expenses. However, it is essential to prioritize procurement quality over simply reducing costs. This study begins by rectifying four common misconceptions regarding procurement. Subsequently, it presents four crucial aspects of effective procurement process management in commercial banks: precise identification of procurement needs, meticulous preparation of procurement documentation, strategic negotiations informed by astute decision-making, and conscientious contract management. Ultimately, the conclusion emphasizes that procurement personnel should approach and resolve complex situations in the procurement process with a pragmatic and meticulous work ethic, complemented by professional expertise and innovative skills.

Keywords

Procurement Cost Control; Precise Identification of Procurement Needs; Strategic Procurement Negotiations; Procurement Contract Management

References

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