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Purchasing

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kunal
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13 views8 pages

Purchasing

Uploaded by

kunal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

Purchasing
In a global business environment, the purchasing function plays a crucial role in
acquiring goods and services. It involves a strategic approach to sourcing,
negotiating, and managing supplier relationships.

DN by Durgesh Nandan
The Purchasing Process
Identify Needs Evaluate Suppliers Place Orders

Departments submit requests for Research and assess potential Generate purchase orders and
goods or services based on suppliers based on quality, price, initiate the procurement of
operational requirements. and reliability. required items or services.
Types of Purchasing Methods

1 Open Bidding 2 Single Sourcing 3 Framework


Agreements
Public process where Engaging with a single
multiple vendors can submit supplier for a particular Pre-agreed terms with
bids for a specific contract or product or service due to suppliers for repetitive
project. reliability or cost benefits. purchases over a specific
period.
Vendor Selection Criteria
Product Quality Financial Stability
Assessing the reliability and consistency of Evaluating the vendor's financial status to
the supplier's products or services. ensure long-term partnership viability.

Operational Capacity
Reviewing the supplier's ability to meet production and delivery requirements consistently.
Negotiation Strategies

Preparation Value Creation Relationship Building


Research the market, understand Seek opportunities for mutual Foster positive relationships by
supplier positions, and set value and develop creative demonstrating respect and
negotiation objectives. solutions to enhance the deal. professionalism throughout the
negotiation process.
Contract Management
1 Creation
Drafting, reviewing, and approving contracts with clear terms and conditions.

2 Execution
Finalizing contracts, obtaining signatures, and ensuring all parties understand their obligations.

3 Compliance
Monitoring and enforcing contract terms, managing changes, and addressing disputes.
Purchasing Performance Metrics

10% 98 4.8
Cost Savings Supplier Compliance Inventory Turnover
Measure the percentage reduction in Track the percentage of orders Calculate the number of times
procurement expenditures compared fulfilled on time and in accordance inventory is sold or used in a
to budgeted costs. with specifications. specific period.
Future Trends in Purchasing
Blockchain Integration Enhanced transparency and traceability in supply
chain transactions.

AI-Based Automation Streamlining repetitive tasks, predictive analytics, and


demand forecasting.

Sustainable Sourcing Increasing focus on environmentally friendly and


ethically sourced materials.

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