Procurement executes the sourcing and production strategies by placing purchase orders with approved suppliers. Purchase orders should be placed within the parameters of the quotes obtained by sourcing to meet the production schedule.

Some of the legal considerations procurement reviews are lead-time, cost, raw material sources, quality requirements, minimum/maximum order volumes, component revision levels, and incoterms. Organizations can have unique requirements that procurement needs to consider when placing purchase orders, such as material certification, testing, or multiple destinations.

Procurement is responsible for balancing incoming supply to meet changing business conditions by negotiating adjusted quantities and PO due dates. One often overlooked aspect of procurement duties is ensuring on-time delivery by working with suppliers, logistics, and receiving. Procurement also closes the purchasing loop by managing invoice discrepancies to limit PPV (Purchased Part Variances). By ensuring on-time delivery and PPV accuracy, the procurement team supports ongoing data-driven sourcing efforts.