Procurement vs Purchasing

BusinessProcurement and purchasing are both widely used terms in the business world. Generally, they are referred to in the same way. People will talk about procurement if considering a purchase, for example, and they will often generally reference one as if it were the other. However, even though purchasing and procurement overlap in some important ways, they actually refer to two different types of interactions.

Procurement involves a lot more than just trading money for an item. It is meant to describe the acquiring of goods and services for a place of work overall. Working in procurement for a company involves following several steps to obtain all the items the business needs. For example, once an organization decides it needs a specific product, they must acquire a list of places that sell said product. If the company has an approved vendor list, they will most likely choose from said list. If not, however, they turn to purchase orders or sales representatives. A lot of qualifying must go into choosing a company to provide a product.

Before signing off on a product, however, a the business must research best prices and contract terms for their desired product. How far the company is willing to go to get a product is discussed in this stage, and vendors are considered from all angles. When the ordered product arrives at its destination, the business then must inspect it. They have the option to reject it if it somehow is not in concordance with the purchase order.  Once the company finally accepts a purchase, they approve the invoice and pay the supplier. A payment must be filed away in purchase records for the company’s taxes and any future audits.

As you can see, purchasing is a subset of procurement, and the two are not mutually exclusive. Procurement is a process that touches every facet of a business, however purchasing itself just affects on department. When procuring a product, a business must make sure the company they work with supports the way they have carefully branded themselves. Businesses generally seek out other businesses that are like-minded, with the same values. Marketing is key, and every procurement is viewed as a step toward the company’s overall goals.

All in all, I would like to stress that procurement and purchasing should not be used interchangeably. The procurement process is a lot more in depth and should be handled as having an effect on the entire business.

Oil Prices on the Rise?

Economy

The oil industry has not been doing so well in the past few years. It has had to deal with a dramatic decrease in price, as supply has increased and demand has decreased. More specifically, the price of oil has dropped 70% in the past two years, worrying oil barons and economists alike. This is, in part, due to fracking in the United States. This country has been using this technique of hydraulic drilling to increase accumulation of oil on their own soil. They were not aware that such a tactic would so detrimentally affect their economy. Additionally, large oil production companies have been wary to cut down production in fear of the competition being favored. Such conditions have sent oil prices plummeting all over the world. However, there is speculation that the oil price plunge has hit bottom, and it will now begin to rise again.

This hopeful projection stems from the fact that oil prices have gone up since the start of the new year. Prices per barrel are up almost 2% since January. This is in part due to production outages in countries on which the world relies for their oil, such as Nigeria and Iraq. Such an increase in the past few months bodes well for the future of oil, which could also give the global economy a much-needed boost.

Other factors that have added to the rise of oil prices per barrel include a sharp decrease in investment. When oil is doing well in the markets, investors make ‘exploration investments’ that help fund exploration to find new sources of oil. However, when prices began to drop, investors put all oil exploration efforts on hold. Also, there is simply not as much demand for fuel as their once was in the world. As society is becoming more environmentally conscious, there is a growing demand for energy efficiency. One part of efficient energy is finding sources other than oil from which to draw power. Fuel efficient cars, for example, make the demand for oil much lower than they have been in the past.

The International Energy Agency (IEA) has taken into account all the available information, and is not convinced the prices of oil will continue to rise. The demand for oil reached its highest point in the middle of the year 2015, but has slowed down, leading the IEA to believe that the demand for oil will remain flat this year.

It will be interesting to watch how increased oil prices affect demand, and if these prices will continue to increase in the next few years.

Economic Factors That Influence People’s Behavior

Economic Factors

Depending on a person’s needs and wants, you can grasp the economic factors that influence their behavior. Everyone has their perception of the products and resources that are important in life. Yet, there are economic factors that you should put into consideration before purchasing a product. There are products a person needs versus a product they want. Economic factors a majority of people should put into account are income, desires and credit market.

Managing your income is one factor because without any source of income you will not be able to buy anything. Even if you are rich, or have no financial responsibilities, budgeting your income is vital. The common responsibilities a person should keep in mind are paying bills. Such as transportation to and from work, rent or mortgage, food and the miscellaneous situations that may come up. Due to the way society is set up, people that suffer with low-income, are more inclined to use a vast amount of their money on basic needs. People who have the luxury of generating a high-income are able to distribute their money into more than just their needs. For example, taking a vacation every summer, buying another home, or adding more cars to their collection.

Although, everyone doesn’t have the privilege of having a high-income, people still have desires. We live in a society that is always creating new and innovative products for consumers. With the growth of new products and changes to your life, you will be more inclined to look into purchasing the latest products on the market. A prime example of people wanting the latest product, is the Apple iPhone. Apple has come out with new products every year, which makes people spend any extra money on Apple products just to fulfill the desired urge of purchasing something new.

An economic factor that can be useful to people with a low or high-income is the credit market. Having a credit can be very beneficial, it allows you to buy a product that you may not have the funds for at the moment. However, you will have to payoff or pay the minimum payment before the next billing cycle. People use their credit card for a plethora of reasons. Such as, purchasing large items like cars, houses, or groceries. Signing up for a credit card may sound like a great idea, but the overuse of a credit card can lead you into debt. Depending on what credit card service you are using there are different rates of interest, some being higher than others.

No matter what your living situation is you should always be aware of the economic factors. These economic factors of income, desire and credit market are three out of a bunch, accounted for people’s behavior. If you want to gain more insight on other economic factors you can check out this link here.

Top 3 Fastest Growing Allied Health Careers

Health Symbol

The medical industry is growing fast, which means more opportunities for people looking to start a career path in Allied Health careers.  The health industry is growing so fast that, The Bureau of Labor Statistics reported, that health care is the largest industry in the United States. The health care industry supports over 13 million workers a year. However, with the high rate of growth in this industry, this number will surely change over the next couple of years.

There are numerous health career paths, that are growing fast in the United States, but, I have provided the top three careers to start looking into as a suggestion to make things easier when making a decision.

 

1)  Medical Assistant

This is a developing profession, these experts perform clinical and authoritative obligations at the workplaces of specialists, doctors, chiropractors, and other restorative experts. Their obligations depending on the facility and are influenced by facility size and the strength of their manager. The accompanying is an incomplete rundown of their obligations: noting telephones, welcoming patients, keeping up restorative records, finishing protection printed material, drafting letters, planning tolerant arrangements, setting up research center tests and healing facility stays, and keeping up books and taking care of patient paperwork for billing. If you’re looking to choose this as your career path, you will need post-high school certificate or an associate’s degree, which takes 1-2 years to complete.

 

2)  Diagnostic Medical Sonographers

Another name for this profession is known as ultrasound technicians. These authorities use advanced high recurrence sound wave innovation to take interior pictures of the body. These pictures are captured, recorded, and transmitted to specialists to make therapeutic analyses. These experts are as of now popular, making this a quickly developing profession.

As the American populace keeps on maturing, expanding the need to oversee indicative imaging tests, work development for analytic therapeutic sonographers will increment at high rates. Besides, sonography has been an attraction, when speaking to numerous patients craving to maintain a strategic distance from radiologic methodology that can be dangerous. If you’re interested in this career choice, you can obtain an associate’s or bachelor’s degree in diagnostic medical sonography.

 

3)  Physician Assistant

This specific position is currently in high demand and understaffed throughout the nation. Physician Assistants are prepared to direct administered precaution wellbeing, remedial, and analytic administrations. Working with other social insurance experts, they record medical histories, assess and treat patients, set up and analyze x rays beams and other research facility tests, and analyze therapeutic issues. They are frequently the essential medicinal suppliers in internal city or provincial offices where specialists can’t generally be available.

The growth in physician assistants, are growing at a rapid pace compared to the past. Making this profession a quickly developing occupation. Development can be ascribed to develop in human services benefits across the nation, more prominent dependence on these authorities, and hierarchical endeavors to lessen costs. If you’re interested in pursuing this career path, it will require a completed accredited training program and pass a national certification exam.

 

Of course, these are not the only professions to look into, when deciding on a health care career path. However, these are the most notable career choices to make in the upcoming years. If you’re interested in learning more about different health care professions, then you should take a take a look at this link here.