Seven key points
The IDE-CESEM business school points out seven points that must be optimized in the purchasing function of
face to gain competitiveness:
1. Supplies, on time. The basic premise is to get the right materials and services with the right quality, in the right quantity and at the right price, and from the right supplier. But if the flow of the supply is not ensured on time, all of the above is meaningless.
2. Inventories, to a minimum. It is easy to order large quantities so purchases are a part - along with inventory and warehouse management - of a larger sector: supplies.
Joint strategy
The procurement scheduling, the purchasing plan, is always carried out in line with the strategies of the rest of the functional areas. That is, it takes into account, as a minimum:
1. The computations of those responsible for managing the stock and warehouses.
2. The sales forecast by the head of the commercial department.
3. Estimated raw material needs by production.
4. The budgets prepared from the financial department.
The relevance of purchasing management in organizations is explained because, to a large extent, benefits are achieved thanks to sales margins and cost reduction. In an industrial firm, the cost of the material can be 60% of the total cost of the product. If purchasing management is optimized, reducing the price of the product by 1%, that amount becomes profit.
POWERS OF THE HEAD OF THE SERVICE
The purchasing manager is the maximum and direct person in charge of the organization, coordination and control of all the activities related to the management of the service under his charge. According to Jordi Pau Cos and Ricardo de Navascués, authors of the “Comprehensive Logistics Manual” (Ediciones Díaz de Santos, 1998), the competencies assigned to a purchasing manager are usually similar in all types of organizational structures. Specifically, its functions can be grouped into:
Directives
- Create and direct programs for the selection and evaluation of supply sources.
- Choose the most suitable suppliers for the company.
- Promote collaboration and synergy with other departments of the company.
- Direct the people who make up his department, training them when necessary.
- Prepare the manual budget of the department.
Organizational
- Organize the work that is carried out on a regular basis within your department, so that they are carried out efficiently and effectively.
- Indicate the objectives to be achieved in each period and the means available to achieve them.
- Guide and hold the personnel under his command accountable to negotiate with suppliers according to the established standards of ethics and cordiality.
Of control
- Direct a program of constant evaluation of existing suppliers. You must report relevant changes in your capacity or behavior that may affect the quality, prices or continuity of the service.
- Monitor that suppliers meet delivery dates.
- Controlling the degree of achievement of the objectives set, applying the appropriate corrective actions.
DIAGNOSIS
Julián Delgado Díaz, director of the Production and Quality Area of the IDE-CESEM school.
“The concept 'price healthy 'is basic for the negotiation"
When it comes to shopping, what are the keys to negotiation?
The objective is to arrive at a solution that satisfies the particular interest of the supplier and the buyer. Therefore, the negotiation is based on the winner-winner philosophy, aimed at achieving a good agreement for both parties, which implies that something must always be given. A concept that serves as a reference is the “healthy price” of a product: what a thing really costs, including the reasonable profit of the entrepreneur, without forgetting the market situation (conditions of supply and demand).
What is the basic objective of effective purchasing management?
Increasingly, purchases are seen as a source of profit. Since there are always estimates of costs, sales, labor ... if the buyer manages to reduce the price of purchases, that profit becomes direct benefits for the company.
What trends is the current purchasing function following?
Purchasing management is not left out in the search for total quality. The products will have the quality demanded by customers, which means that the buyer must find and develop competitive sources of supplies. If the buyer purchases quality products, he eliminates or minimizes his quality control costs. Another trend - widely established in automotive companies - is just-in-time: reducing stock to a minimum, ensuring that suppliers serve the quantities ordered in a short space of time, depending on demand. Both trends mean cost savings, but require very specific agreements with suppliers, who become our partners or partners. With co-marketing, or associated manufacturing, this integration is greater.
Fountain:
http://www.emprendedores.es/
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