My company is a supply of architectural products and services company, which we mainly focus on selling aluminium partition. The reasons that we need to have purchasing instead of making are as the following:
Maintain and improve the product quality for example we need to buy the glass panel and installation worker to sell the full set for the partition system instead of only the aluminium profile to client.
Improve and enlarge our company’s competitive position in the aluminium market due to our competitor are selling the full set of partition system.
Fulfill some customer’s special request through the purchasing process.
Find a competent supplier to support our company’s product.
Our company does not have a department call “Purchasing department” because the purchasing activities are done by two departments: Pricing Team and Project Team. When pricing team received order from Sales Team, they have to contact with the customers to understand their need, and according to their requirement to take the purchasing research to find the suitable supplier. The project team needs to negotiate with the supplier for the price & other pertinent terms. After confirm all the things , the project team will responsible for supply chain management, they must base on the demand forecasting from our customers & the product supply planning from the suppliers to arrange delivery to our customers. The Strategic Stage of purchase in our company is Supportive Stage, because the purchasing activities are viewed by top manager as essential business function. Purchasing is expected to support and strengthen our company’s competitive advantage by providing information about potential changes in the price and availability of materials and this will affect firm’s strategic goal.
The reasons that we consider of buying instead of make :
Lack of technical experience and administrative on those product, buying process and help us to lower the overhead cost. ...
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