Provisioning

economic-dictionary

Provisioning is the act and result of supplying certain resources. This, so that a process can work, for example, in a company, or to gather a reserve that can be used for a particular circumstance such as an emergency.

That is, provisioning is the process by which the necessary goods are obtained to carry out an activity, whether commercial or non-profit.

So, on the one hand, companies must take care of the supply of the inputs they require to develop their production process. Otherwise, they will not be able to supply the demand.

In this sense, it is necessary for the company to calculate based on its historical data what its expected sales are in each period, and it can add a surplus to that to foresee an increase in demand.

It should also be noted that the provision of certain resources is key for the population, such as food and basic services. Thus, the Government must ensure the supply of these elements, which may be limited or suspended due to extraordinary circumstances such as a natural disaster.

Procurement and logistics

Another point to take into account is that the supply is related to the logistics administration. This is the set of operations and strategies that a company must implement in order to efficiently transport its goods to the end customer.

Correct logistics management supposes, therefore, that a firm is capable of supplying its clients with the goods they require. In turn, you must ensure that the business generates an economic benefit.

Other meanings of provisioning

Provisioning can also refer to the equipment that an athlete or explorer needs to perform a certain activity. It can be both the appropriate clothing and the items and supplies that the individual must carry with them.

Another way of understanding procurement is as the process of finding or buying goods, services or works from an external agent. Thus, to pay the lowest possible price, an auction or tender can be held.

Tags:  Argentina economic-dictionary markets 

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