Monday 21 September 2015

What is procurement ? | Odoo

Procurement is "The action of obtaining for required products".  On confirming Sale Order or checking minimum stock rules for replenishment, a demand of stock will be generated. So procurement is the process to prepare and process on that demand.  
Procurement is the central place where system decides what to do against demand. Whether to purchase or to produce upon product's routes. The process of procurement is often part of a company's strategy because the ability to purchase certain materials will determine if operations will continue or not. A business will not be able to survive, if it's price of procurement is more than the profit it makes on selling the actual product.

In a nutshell, Procurement = Acquisition process to obtain required materials.


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