Contracts in procurement management: An investigation on the baby maternity industry

• Published in: International journal of commerce and finance 2019-10, Vol.5 (2), p.195-205
• Main Authors: Becit, Cengiz, Görener, Ali
• Format: Article
• Language: English
• Subjects: İktisat & İşletme & Finans; Pazarlama
• ISSN: 2149-9608

Realization of procurement activities in a rational and highly efficient way is extremely important for enterprises. The enterprises that are able to realize an advantageous procurement transaction compared to other enterprises in the purchasing process will gain an opportunity to get ahead in hard competition conditions. Thus, it will be possible for these enterprises to grow and increase their market share. In addition, the required products to be at the right time and in the right place is very important for the continuation of the operations of the enterprise.Enterprises sign a contract to make a solid agreement with the individuals and organizations they are dealing with, to reduce uncertainties for the future and to perform a rational procurement transaction. Contracts are a legal practice which brings rights and obligations for both parties from the moment they are signed validly. For this reason, contracts in commercial life have found a significant application areas. In this study, the importance of procurement function and its importance for the enterprises is examined first and then the subjects that enterprises should consider in terms of contract management are mentioned. In the last chapter, three contracts were included in the study in order to understand the practice of the subject. Thus, a better understanding of the importance of contract management for enterprises has been achieved.