Chundru Ranga Rao
Dr. A Prabhu Kumar
Abstract
Procurement process is an important function in any business. According to the studies 60 to 70% of the cost is involved in materials cost component. Many Micro, small and medium enterprises not aware of the procurement process in detail and most of the time they are procurement materials on spot purchase instead of three months in advance and most of the organizations do not have procurement planning. For this purpose we have conducted a field research for micro, small and medium enterprises in India to understand the present procurement process by using business canvas model and their business complexity while procuring the materials and analysed 34 companies starting from engineering, manufacturing, food processing and printing works and compiled the data, value proposition, pros and cos of company business process and improvement measures are discussed in this research paper.
Keywords- Procurement Strategy, Competitiveness, Design Thinking, Business Canvas Model