What are the main responsibilities of a procurement function in SCM?

• A. Logistics execution
• B. Sourcing and supplier selection, negotiation, contract management, monitoring supplier performance and costs, plus risk management
• C. Managing production schedules
• D. Marketing

Answer: (B)

Procurement in supply chain management is about obtaining the inputs the organization needs under favorable terms while managing risk and value. The main responsibilities include sourcing and supplier selection to identify capable vendors, negotiating terms and prices, and managing contracts to formalize commitments and ensure compliance. It also involves monitoring supplier performance and costs over time to protect value, and actively managing supplier risk to prevent disruptions. This set of activities is distinct from logistics execution (moving and storing goods), production scheduling (planning what and when to manufacture), and marketing (driving demand and customer engagement).