Purchasing is important, particularly because of its impact on costs and its relationships with your suppliers, who are a crucial part of your supply chain success. Learn how the purchasing function contributes to company goals and the four things needed to create a successful purchasing department.
- Have you ever heard of a chief purchasing officer? … Like a chief executive officer, a chief information officer. … A member of the highest level of executives in the company, … but this person is responsible only for the purchasing … function. … Well, we are now seeing more and more US companies … elevate purchasing to this very significant level, … and that's the number one thing I want you to take away … from this session. … Purchasing is important. … Now why is that? … First and foremost, purchasing is very important … to the company's success because of its impact on costs. … In many manufacturing companies today, more than half … the cost of making a product is attributed to the company's … suppliers. … The people who provide materials and components … and assemblies to your factory. … And it's the purchasing group that buys those needed … goods and services in a manner that provides maximum value … for your company. … By the way, that's a pretty good definition … of the term purchasing. …
- 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.