Buyers are expected to find value for their company’s money and, fortunately, there are some excellent tools to assist in this effort. This video shows you three ways to increase value and discusses specific models you can use to help determine a fair and reasonable price for your purchases.
- When shopping, either in a store or online,…most of us try to spend our money wisely.…As consumers, we all want to get the best deal…we possibly can.…Well, purchasing professionals are trying…to accomplish the same thing at work.…In fact, a friend at Intel Corporation once told me,…that he is expected to spend Intel's money…as if it were his own.…Buyers are expected to find value…when they spend their company's money.…A good definition of value, is to compare what you get…for your money, and the price you paid…for everything you received.…
Getting more for a lower price,…provides good value for your company.…To a buyer, the price you pay is…the focus of your cost management efforts.…Price is what it cost you to make the purchase.…You can increase value, in three very straightforward ways.…First, by reducing what it cost you for the purchase.…Assuming of course that the quality stays the same.…You are buying the same item, you're just paying less.…Or you can increase value, by getting more…for your money at the same price.…
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.