Elaborate on the purchasing function as part of supply chain management and its importance.

 

Purchasing is the management of the acquisition process. This includes deciding which suppliers to use, negotiating terms and conditions, etc. It must satisfy the firm’s long-term needs and support the firm’s capabilities to produce goods and services.  Elaborate on the purchasing function as part of supply chain management and its importance.

*AFTER COMPLETION MUST RESPOND TO TWO/THREE CLASSMATES, PRICE IS INCLUDED

Mod 3 Week 1 Purchasing in Supply Chains

Hu’dene Wright

 

Dr. Flores and Classmates,

Purchasing is one of the processes in the supply chain management (SCM) which involves procuring the materials or services from a supplier.  A business can select one supplier or multiple as well as private or public suppliers; there are pros and cons and governing regulatory policies to consider when making your selection.  But management must carefully select the supplier that will distribute their products, negotiate terms and conditions as well as consider the long-term effects of their decision.  One method to ensure they have the correct supplier would be to review the supplier’s quality management procedures and key performance indicators (Carvalho., H. & Cruz-Machado, V. (2011).  Another consideration should be the supplier(s) transparency and accountability for their practices.  Much like your business, the supplier must prove to you they are efficient in the service or products they provide.  Ensuring the values and strategic business plan of your supplier aligns with and compliments your plan provides a certain level of reassurance to management, stakeholders, and customers.

The efficiency and the processes they have in place that will protect your products can add value to the creditability of your business.  Choosing the right supplier, as a part of the SCM, can result in a long-term profitable opportunity for both management and the supplier and lead to agility.

 

Carvalho., H. & Cruz-Machado, V. (2011). Integrating Lean, Agile, Resilience and Green Paradigms in Supply Chain Management (LARG_SCM). Supply Chain Management, Pengzhong, L.(Ed.). DOI: 10.5772/14592. Retrieve from

Purchasing in Supply Chain Mgt

Kenneth Leiker

The purchasing function within Supply Chain Management (SCM) is one of the more critical steps as this has to be a very reliable process in order for it to work for the business.  Suppliers, with whom the business buys from in the purchasing process, are a direct reflection of the business and can have a huge impact on customer satisfaction overall.  These suppliers must have the same, keen interest in performing a superb job and getting the highest quality parts to the business in the most efficient time.  Purchasing also has another dimension and that is of cost to the business.  This process should be done in the interest of maximum savings to the business while maintaining the highest standards of products to meet customer demands.  Many times this purchasing can be done in bulk to save additional costs on product and shipping with the only down side being a potential cost for storage of goods awaiting sale or use.

 

Overall, purchasing can have a substantial impact on a business and must be done in a smart, efficient, and strategic manner to reap the maximum benefits from the process!

 

Ken

 

Reference:  com/articles/what-is-supply-chain-management.php

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