WHY PURCHASING MANAGEMENT IS MORE COMPLICATED TODAY COMPARE TO THE PAST?
What is Purchasing Management? Purchasing Management is the management of purchasing process, related aspects in an organization and responsible for purchasing activities. Nowadays, Purchasing Management is important in an organization.
The Purchasing Management also has their own objectives where it is to purchase the required material at minimum possible price by following the company policies, to keep department expenses low and many more. Today as we know, Purchasing Management is more complicated compare to the past because there are many factors.
One of the factors is difficult to get the good supplier. It is because nowadays many suppliers offered with high price for the product but low quality. This is happened because the supplier wants to get more profit easily without think that it can give bad reputation for the company to their customer. That why the Purchasing Management must choose the best supplier for their company.
For the second factors is about personal relationships. Purchase orders are placed with
suppliers with whom the user has a friendly relationship; this is one
reason why long relationships between organizations may exist. As a
result such suppliers may not be as competitive as the internal
customers think they are.
For the third factors is lack of good contractual arrangements. Contracts, when
available, are stated in general terms, they are not complete and a clear description of the product or
supplier requirements may be missing. Another problem may be, that the
contract is drafted by the supplier using its own legal terms and
conditions.
In conclusion, Purchasing Management is very important in an organization because expected to gain more authority in the corporate hierarchy.
WHY PURCHASING MANAGEMENT IS MORE COMPLICATED TODAY COMPARE TO THE PAST?
What is Purchasing Management? Purchasing Management is the management of purchasing process, related aspects in an organization and responsible for purchasing activities. Nowadays, Purchasing Management is important in an organization.
The Purchasing Management also has their own objectives where it is to purchase the required material at minimum possible price by following the company policies, to keep department expenses low and many more. Today as we know, Purchasing Management is more complicated compare to the past because there are many factors.
One of the factors is difficult to get the good supplier. It is because nowadays many suppliers offered with high price for the product but low quality. This is happened because the supplier wants to get more profit easily without think that it can give bad reputation for the company to their customer. That why the Purchasing Management must choose the best supplier for their company.
For the second factors is about personal relationships. Purchase orders are placed with suppliers with whom the user has a friendly relationship; this is one reason why long relationships between organizations may exist. As a result such suppliers may not be as competitive as the internal customers think they are.
For the third factors is lack of good contractual arrangements. Contracts, when available, are stated in general terms, they are not complete and a clear description of the product or supplier requirements may be missing. Another problem may be, that the contract is drafted by the supplier using its own legal terms and conditions.
In conclusion, Purchasing Management is very important in an organization because expected to gain more authority in the corporate hierarchy.
Our
next CPO challenge is simply that they want their sourcing and
procurement function to be used more and recognized as a
value-generating shared resource by the enterprise. There is nothing
more frustrating than having a well-oiled process, a team with deep
sourcing expertise and world-class technology, only to find rogue
sourcing. Almost the same is to be involved only at the last minute to
negotiate the final contract once a supplier has been all-but selected. A
CPO needs the authority and support from other executives to mandate
the use of the sourcing and procurement function by the entire
enterprise. In the same way that the Google algorithm evolves and
improves every time you enter a new search, a sourcing operation will
actually improve with higher utilization as greater spend volume, more
market information, better collaboration and increased benchmark data
take effect. - See more at:
http://www.mypurchasingcenter.com/technology/technology-articles/cpos-face-10-challenges/#sthash.g6C0OFTa.dpuf
Effective
Use of Sourcing. Our next CPO challenge is simply that they want their
sourcing and procurement function to be used more and recognized as a
value-generating shared resource by the enterprise. There is nothing
more frustrating than having a well-oiled process, a team with deep
sourcing expertise and world-class technology, only to find rogue
sourcing. Almost the same is to be involved only at the last minute to
negotiate the final contract once a supplier has been all-but selected. A
CPO needs the authority and support from other executives to mandate
the use of the sourcing and procurement function by the entire
enterprise. In the same way that the Google algorithm evolves and
improves every time you enter a new search, a sourcing operation will
actually improve with higher utilization as greater spend volume, more
market information, better collaboration and increased benchmark data
take effect. - See more at:
http://www.mypurchasingcenter.com/technology/technology-articles/cpos-face-10-challenges/#sthash.g6C0OFTa.dpuf
Effective
Use of Sourcing. Our next CPO challenge is simply that they want their
sourcing and procurement function to be used more and recognized as a
value-generating shared resource by the enterprise. There is nothing
more frustrating than having a well-oiled process, a team with deep
sourcing expertise and world-class technology, only to find rogue
sourcing. Almost the same is to be involved only at the last minute to
negotiate the final contract once a supplier has been all-but selected. A
CPO needs the authority and support from other executives to mandate
the use of the sourcing and procurement function by the entire
enterprise. In the same way that the Google algorithm evolves and
improves every time you enter a new search, a sourcing operation will
actually improve with higher utilization as greater spend volume, more
market information, better collaboration and increased benchmark data
take effect. - See more at:
http://www.mypurchasingcenter.com/technology/technology-articles/cpos-face-10-challenges/#sthash.g6C0OFTa.dpuf
Effective
Use of Sourcing. Our next CPO challenge is simply that they want their
sourcing and procurement function to be used more and recognized as a
value-generating shared resource by the enterprise. There is nothing
more frustrating than having a well-oiled process, a team with deep
sourcing expertise and world-class technology, only to find rogue
sourcing. Almost the same is to be involved only at the last minute to
negotiate the final contract once a supplier has been all-but selected. A
CPO needs the authority and support from other executives to mandate
the use of the sourcing and procurement function by the entire
enterprise. In the same way that the Google algorithm evolves and
improves every time you enter a new search, a sourcing operation will
actually improve with higher utilization as greater spend volume, more
market information, better collaboration and increased benchmark data
take effect. - See more at:
http://www.mypurchasingcenter.com/technology/technology-articles/cpos-face-10-challenges/#sthash.g6C0OFTa.dpuf
Effective
Use of Sourcing. Our next CPO challenge is simply that they want their
sourcing and procurement function to be used more and recognized as a
value-generating shared resource by the enterprise. There is nothing
more frustrating than having a well-oiled process, a team with deep
sourcing expertise and world-class technology, only to find rogue
sourcing. Almost the same is to be involved only at the last minute to
negotiate the final contract once a supplier has been all-but selected. A
CPO needs the authority and support from other executives to mandate
the use of the sourcing and procurement function by the entire
enterprise. In the same way that the Google algorithm evolves and
improves every time you enter a new search, a sourcing operation will
actually improve with higher utilization as greater spend volume, more
market information, better collaboration and increased benchmark data
take effect. - See more at:
http://www.mypurchasingcenter.com/technology/technology-articles/cpos-face-10-challenges/#sthash.g6C0OFTa.dpuf
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