Improved purchasing management efficiency
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Purchasing management is the most important part, since a good approach to configuring purchasing activities has a direct impact on the value of the final product. This applies to companies engaged in retail and wholesale trade: purchasing volume is an important part of the economic activity of such companies.
PURCHASING MANAGEMENT OBJECTIVES:
- Ensure a constant supply of raw materials for uninterrupted production. Downtime of equipment and personnel increases costs and reduces revenues by decreasing production volumes.
- Build up a small inventory of raw materials that will allow you to continue producing goods for a period of time if there is no supply. For example, if your suppliers are geographically distant and deliveries are infrequent, there may be delays due to supplier fault or force majeure.
- Search, analyze and select suppliers with the lowest price and quality requirements.
PURCHASING MANAGEMENT TASKS
The management of each company establishes its own purchasing management tasks, depending on the characteristics of production and the particularities of the company. The most common are the following:
- Analysis of market prices.
- Purchase goods for production at a reasonable price.
- Controlling the quality of procurement.
- Continuous work with suppliers (delivery plan, logistics, documentation).
- Organization of the order fulfillment mechanism according to current needs (Internet ordering, electronic document management, remote work format), etc.
THE PURCHASE MANAGEMENT PROCESS:
- Identify the need. Determine the requirements of the goods to be purchased based on the expected characteristics of the final product.
- Stock analysis. Update your stock levels and, if there are shortages, identify quantities that need to be purchased.
- Searching for and choosing a supplier. Examine commercial offers, choose one or several suppliers, verify that they are legally constituted, enter into contracts, determine the conditions, negotiate the price and the periodicity of supply.
- Order preparation, placement and control. The automation of operations, from order preparation to payment and receipt of the order, shortens the time between deliveries and optimizes the work of your purchasing department. Constant control of compliance with the supplier’s conditions and obligations.
- Receipt and inspection. Defective products must be returned and replaced. These conditions should be stipulated in the contract with the supplier at the contract signing stage. At this stage it is also important to organize correctly the storage of the orders, respecting the technical storage capacities with the conservation of the consumer properties.
- Documentation. It involves the signing of incoming documents, payment for goods and possible reclamation work if there are disputes with suppliers about the conditions, quantity and quality of raw materials purchased.
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Mission
To be the leading company that helps the development of the entire industrial sector, always distinguished by the quality of its services, human resources, organizational efficiency and recognized trajectory.