What is the goal of purchasing management?

1. Provide needed materials and services for enterprises. This is the most basic goal of purchasing management. Initially, the procurement department was set up for this purpose.

2. Strive for the lowest cost. In a typical enterprise, the activities of the purchasing department of the enterprise consume the most funds. In addition, the economic leverage effect of enterprise procurement activities is also very obvious.

3. Minimize inventory and losses. One way to ensure uninterrupted supply of goods is to keep a large inventory. And maintaining inventory will inevitably occupy funds and can no longer be used for other purposes.

4. Maintain and improve your products or services. In order to produce products or provide services, the input of each material must meet certain quality requirements, otherwise the final product or service will not meet the expected requirements, or its production cost will far exceed the acceptable level.

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Misunderstanding of purchasing management

Purchasing and outsourcing play a very important role in enterprise operation, and their influence is often reflected in cost and quality most directly and obviously. For engineering companies, trading companies and other enterprises, due to the large proportion of procurement and outsourcing, procurement management is more significant.

However, according to the investigation and management consultation of several different types and properties of enterprises, many enterprises have misunderstandings in procurement management, and some of them have almost become common problems.

Be sure to "shop around" when buying.

Managers of many enterprises think that managing procurement only needs to "shop around". Usually, the person in charge of purchasing needs to provide at least three quotations when reporting the purchase plan, and the manager will examine and approve the price comparison of the three, and then choose the one with the right price (in most cases, choose the one with the lowest price).

This method is very simple. In purchasing management, this purchasing method is called "inquiry purchasing" or "purchasing". But is there a problem with this management method? Yes, and there are still many problems.

In fact, many managers may find that the method of "shopping around" often fails.

The root cause of the problem is that there is no supporting qualified supplier management mechanism. In this case, the purchasing manager finally signs to select the supplier, which seems to have absolute decision-making power, but because the purchasing personnel can make inquiries freely, they have actual decision-making power. If we don't change this management mode, it's futile to "shop around" anyway.

The key to solve this problem is to define a range of inquiry activities for purchasing personnel, that is, "qualified supplier evaluation". "Qualified supplier evaluation" was originally the concept of quality management, but from a broader and practical point of view, it means that managers delimit a range according to a standard of quality and cost.

This range can be directly decided by the top managers of the enterprise, or it can be decided by a Committee. In a word, the purchasing supervisor can't decide this range alone, nor can he jump out of it. He should be responsible for the decision support information within this range in every purchasing activity.

Bidding is "effective in one fell swoop"

Bidding as a procurement method gives people the impression that it is objective, fair and transparent. Many managers think that bidding can introduce competition, reduce costs and everything will be fine.

But sometimes bidding is not "done overnight". Why bid? Under what circumstances should the tender be invited? Is there any other situation where a more suitable procurement method can be adopted? This involves the choice of procurement methods. There are many commonly used procurement methods. Commonly used are: bidding procurement, competitive negotiation, inquiry procurement, single-source procurement, etc.

Bidding: Except when the end users and relevant laws and regulations require bidding, and when the cost information and technical information of the procurement content are not well grasped, it is best to adopt bidding, one of the purposes is to obtain cost information and technical information.

Competitive negotiation: when bidding, we may encounter such a situation: either the number of bidders is not enough, or the price and ability of bidders are not ideal, and sometimes repeated bidding still fails. Whether to continue bidding is very distressing-it is not to recruit, it is not to recruit. In fact, at this time, we don't need to find a tender, we can adopt the way of "competitive negotiation".

Competitive negotiation is very close to bidding, with similar functions, but it is more flexible and efficient in procedure, and can be used as a supplement to bidding procurement.

Inquiry purchase (i.e. purchase): For the purchased goods (including materials or services) that we have a good grasp of the cost information and technical information and there are many suppliers competing, we can select qualified suppliers in advance, and then adopt the inquiry purchase method of "shopping around" within the qualified suppliers.

Single-source procurement: If we have fully mastered the cost information and technical information of the purchased goods, or only one or two suppliers can supply them, the company should try to establish a long-term cooperative relationship and strive for stable cooperation, long-term price concessions and quality assurance. On this basis, single-source procurement can be adopted.

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