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One of the biggest procurement issues include hamper in supply of the inputs from the supplier. If supplier refuses to provide resources or inputs at the specified time, it can result in serious consequences such as delay in the manufacturing of the product, spoiling the image of the company, decrease in cash flows and customer dissatisfaction. The quality of input is also a major constraint in procurement. Another factor is cost. An organization can incur great cost savings if it chooses the right supplier which is cost effective as well as quality focused. Logistics issues are also very important in timely supply of raw materials.
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