Purchasing management
Purchasing management is the management of purchasing process, and related aspects in an organization. Because of production companies purchase nowadays about 70% of their turnover, and service companies purchase approximately 40% of their turnover, purchasing management is one of the most critical areas in the entire organization and needs intensive management. Purchasing management also covers the areas of outsourcing and in sourcing. Models used to aid purchasing managers include the Newsboy model as well as the Order up To (OUT) model.
Purchasing Process
Purchasing Process includes as usual 8 main stages as follows:
- Requisitioning
- Approving
- Studying Market
- Making Purchase Decision
- Placing Orders
- Receipting Goods and Services Received
- Accounting Goods and Services
- Receiving Invoices and Making Payment
- Debit note in case of material defect
Purchasing Management Process
Purchasing Management Process consists usually of 3 stages:
- Purchasing Planning - Purchasing Planning may include steps as follows:
- Creating purchasing projects and tasks
- Providing related information (files, links, notes etc.)
- Assigning purchasing tasks to employees
- Setting task priorities, start/finish dates etc.
- Assigning supervisors
- Setting reminders
- Control and evacuations
- Purchasing Tracking - Purchasing Tracking consists of:
- Checking task's status and/or history of changes
- Receiving status notifications
- Sorting, grouping or filtering tasks by current status
- Highlighting overdue tasks,
- Purchasing Reporting - Purchasing Reporting includes:
- Comparing actual and estimated values
- Calculating purchasing task and project statistics
- Sorting, grouping or filtering tasks by attributes
- Creating charts to visualize key statistics and KPIs
How to Earn More Money as a Purchasing Manager?
Being a purchasing manager is a busy and sometimes stressful job. The job of a purchasing manager can be very involved and time-consuming. Therefore, it is important to get paid for the work you do. If you are doing your job to the best of your ability, you may feel it’s time to get some more money for your hard work. If this is your case, you will want to try some of these suggestions to help you earn more money in your field. The most important thing you can do to earn more money as a purchasing manager is do your job thoroughly and effectively. It is important to always be aware of the bottom line and ensure you are making decisions that positively affect the company and the money that it makes.
You will also want to make sure that you are conscious of the image that you give for your company. Though you don’t have to be liked by everyone per se, being a team player and getting along with your co-worker, both your superiors and your subordinates, is important to keeping a high morale in the workplace. Everyone knows high morale equals high performance. You will also want to make sure you stay ahead of what is happening in your field. Purchasing management trends are always changing. Knowing what is hot and what is not in the field of purchasing management can make you very marketable within your field and therefore make you a valuable asset to your company. When you are valuable your company will likely pay you accordingly to keep you on their team.
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