What is the importance of procurement in an organisation?

A procurement department is mandated to execute 3 Main Functions:

1. Manage the organization’s spending. A good procurement function is pivotal in deploying an effective Annual Buying Plan, leveraging robust forecasting, market analysis, purchasing processes, and cost reduction methodologies.
2. Support operations by ensuring the timely acquisition of high quality, low cost, inputs and raw materials to be converted into products and services purchased by an organizations’ internal customers. An organization exists to create value for its customers. The procurement function is pivotal in supporting value creation processes.
3. Protect the organization from risk by deploying risk management methodologies such as Failure Mode and Effects Analysis (FMEA). Contract management, and price shock mitigation and avoidance provide huge benefits to an organization, stakeholders and customers.