Purchasing Management

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The purchasing management
Purchasing management directs the flow of goods and services in a company and handles all data relating to contact with suppliers. Effective purchasing management requires knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and transportation and logistics issues. Although a strong knowledge of the products and services to be purchased is essential, purchasing management professionals must also be able to plan, execute, and oversee purchasing strategies that are conducive to company profitability. Sourcing reliable suppliers is a crucial part of purchasing management. Purchasing managers, agents, and buyers usually learn about new products and services from Internet searches, trade shows, and conferences. They meet with potential suppliers in their plants whenever possible. Skills in foreign languages may be helpful for sourcing suppliers in other countries. Purchasing management professionals must always assess potential suppliers in terms of the supplier's ability to deliver quality merchandise at a suitable price on time. Purchasing management professionals must be good negotiators, understand technical product information, have good mathematical ability, understand spreadsheet software, understand marketing methodology, and be outstanding decision makers. Increased responsibilities in purchasing management require good leadership skills, and higher positions often require a master's degree in a business related subject. Entry level purchasing management positions such as junior buyers, assistant buyers, and purchasing clerks, often require a college degree and some product knowledge. Larger distributors may require a bachelor's degree for entry level purchasing management positions. Training and learning typically start in sales, then supervision, and invoice and stock monitoring. Professional purchasing management designations include Certified Purchasing Professional (CPP) in the United States, and Certified Professional Purchaser (CPP) in Canada. Purchasing managers, buyers, and materials managers control budgets, manage staff, and may analyze procurement methods as well as negotiate supplier contracts. Purchasing management professionals must understand tax laws, purchasing trends, ethics, and global outsourcing issues. Buyers and purchasing agents usually deal specifically with purchasing tasks, while purchasing managers usually supervise others, including purchasing agents. However, titles and duties vary greatly between industries and employers. Buyers often have assistants to place orders and keep track of delivery details. Buyers need the ability to select products that consumers will want to buy, so they need to understand trends as well as economic conditions that affect consumer buying decisions. Buyers employed in small stores may be responsible for purchasing the store's entire inventory, while buyers working for larger operations may focus on a few product lines. Merchandise managers may work with an advertising team to create a campaign for the goods they purchase. Follow up is an important part of purchasing management as responsibility does not end in purchasing goods. For example, merchandise managers need to check to be sure the products they buy are being displayed well to attract consumers. Buyers must keep track of customer demands for new products as well as determine how well goods are selling. Purchase Management is a function of materials management in a company. Their basic function is procuring the inputs for production function. This function encompasses suppliers in the market external to the organization and several internal to the organization.

Till recently, the purchasing process simply involved placing an order with the supplier who offered the lowest price. Nowadays, increase in competition and market demand and scarcity of resources have forced organizations to reexamine their purchasing activities. The purchasing...
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