Policies and procedures guide the day-to-day activities of the purchasing department and establish the relationship with your suppliers. This video discusses the importance of ethical conduct, social responsibility, and legal regulations in establishing those business relationships.
- We all have policies and we all follow procedures. … Now, some of us don't like to admit that, … but you have principles that guide your life … and you follow certain ways of going about … the day-to-day activities of your life. … Well, business organizations do the same, … and they set out those principles and procedures … in formal company policies. … Policies establish the rules … that guide a business organization, … and they determine the standard operating procedures … of the organization. … An effective policy accomplishes this in a clear, … concise, and unambiguous manner … that leaves little room for interpretation. … Purchasing policies provide specific guidance and support … by defining the responsibilities … of the purchasing department, … guiding the conduct of all purchasing personnel, … and identifying appropriate buyer-seller relationships. … Let's take a look at some specific purchasing policies … that help to accomplish these objectives. … Nothing is more important in the purchasing world …
- 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.