ABSTRACT
This chapter looks at the basic financial considerations that all executives need to comprehend. Every executive with a desire to lead and manage an organization has to have the basic working knowledge of the financial operations in their company. As most companies mature, so does their structure of a fixed and robust purchasing management functioning department. Procurement can be divided into three separate functions: sourcing, purchasing, and vendor management. Procurement is clearly a vital and growing function of relevance and importance in every organization. Procurement is an internal servicing function that works on behalf of business owners and stakeholders who utilize the materials, products, components, and services purchased by the procurement group. A lucrative tool for those in sourcing, purchasing, and vendor management is the request for proposal. Managing the risks of vendors and suppliers can be a heavy percentage of work hours of those engaged in vendor management.
