international procurement management
1. why is purchasing important ?
1) Purchasing plays a key role in identifying and getting the lowest possible price to help company to lower cost in order to make more profit.
2) If purchasing can bring in high quality products, the products will be in good quality and selling more.
3)Purchasing can help to identify supplier who has best technology that can benefit the organization.
Purchasing is a basic function of any industrial enterprise. Since any industrial enterprise Manufacturing goods (tangibles goods) (products) need raw materials and components for converting them into finished goods purchasing function is of major purchasing department is responsible for purchasing materials of right type, in right quantities, at the right price, made available at the right time and procured from the right supplier.
Purchasing refers to the function of processing of materials, supplies, machines, equipments, tools, spare parts and services required for meeting the needs of production department and maintenance department. Purchasing implies the act of exchange of goods and services for money. In its narrow sense, purchasing refers merely to the act of buying on item at a price. In a boarder sense, purchasing is a managerial activity involving planning and policy formulation, research and development strategies required for the proper selection of materials and sources of supply, negotiating with supplies for best price terms, placing purchase orders follow-up to ensure timely delivery, co-coordinating with other departments. Receiving, inwards inspection, stores and accounting
2. Sourcing process In business, the term word sourcing refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services:
Source: To identify suppliers who are capable to supply goods or services that meet your specifications.
Process : 1) establish requirement (low price or high volume )
1) Purchasing plays a key role in identifying and getting the lowest possible price to help company to lower cost in order to make more profit.
2) If purchasing can bring in high quality products, the products will be in good quality and selling more.
3)Purchasing can help to identify supplier who has best technology that can benefit the organization.
Purchasing is a basic function of any industrial enterprise. Since any industrial enterprise Manufacturing goods (tangibles goods) (products) need raw materials and components for converting them into finished goods purchasing function is of major purchasing department is responsible for purchasing materials of right type, in right quantities, at the right price, made available at the right time and procured from the right supplier.
Purchasing refers to the function of processing of materials, supplies, machines, equipments, tools, spare parts and services required for meeting the needs of production department and maintenance department. Purchasing implies the act of exchange of goods and services for money. In its narrow sense, purchasing refers merely to the act of buying on item at a price. In a boarder sense, purchasing is a managerial activity involving planning and policy formulation, research and development strategies required for the proper selection of materials and sources of supply, negotiating with supplies for best price terms, placing purchase orders follow-up to ensure timely delivery, co-coordinating with other departments. Receiving, inwards inspection, stores and accounting
2. Sourcing process In business, the term word sourcing refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services:
Source: To identify suppliers who are capable to supply goods or services that meet your specifications.
Process : 1) establish requirement (low price or high volume )