The fundamental goal of the Purchasing or Procurement function is to acquire optimum quality and quantity of goods and services for the company in a timely manner, and at the lowest total cost. This also means that procurement is not over when the item is delivered to the site by the supplier. Additional items or services may be needed in future along with the necessary parts, information, guidelines or even training. These all should be facilitated by the purchasing or procurement function.
Traditionally it was thought that competitive advantage was the result of marketing and advertisement expenses and resultantly purchasing was not given due importance. Even in the recent past, purchasing was regarded as being services to production and other functions of the company and thus it was given limited attention to issues concerned in the procurement. But in today`s competitive business world, these traditional approaches can no longer guarantee competitive advantage in all cases. Companies, therefore, have to find other means of succeeding. This is nothing but succeeding through effective utilization of purchasing or procurement processes.
Typically, a company normally spends about 60-70% of revenues through purchasing or procurement, and if this spending is managed efficiently and effectively, company can enhance its competitive advantage significantly. Any savings in purchasing or procurement directly contribute to the company`s bottom line i.e. profit of the company.
On the other hand, Vendor Management allows you to build a relationship with your suppliers and service providers that will strengthen both businesses. Vendor management is not negotiating the lowest price possible. Vendor management is constantly working with your vendors to come to agreements that will mutually benefit both companies.
Today you need to reduce your company`s costs, improve your customer service quality, and increase the synchronization of activities throughout your supply chain. You need to look for cost benchmarking tools that can identify opportunities to generate savings in your procurement, transportation, warehousing, and other relevant operations. You must optimize supply chain management, freight transportation, logistics services and vendor management.
Businesses and professionals involved in the field of purchasing, procurement, transportation, logistics, and supply chain management, import, export and manufacturing and any other areas of business can grab this opportunity by acquiring proper knowledge through learning and training on Fundamental of Purchasing and Vendor Management.
You can learn to operate Tally software online.Tally is a ...Accounts & Finance
QuickBooks is an accounting software program used to manage ...Accounts & Finance
Intelligent and innovative management of working capital ...Accounts & Finance
Professionals in every functional area need to understand ...Accounts & Finance
Bdjobs.com Ltd.19 th floor (East), BDBL Building (Old BSRS)