Friday, May 3, 2019

The Purchasing Cycle Essay Example | Topics and Well Written Essays - 1250 words

The Purchasing Cycle - Essay ExampleFor a purchasing process to be effective, the incision must ensure it understands the telephoners goals and plans. The roughly successful industries that may have managed to provide a very efficient purchasing process in the US include Food and beverage industries and electronic and computers industries.To achieve this objective, the purchasing department must understand the business requirements. It is also required to buy products and go from the honest source, at the right price, quantity, time, and the correct specifications as required by customers. The overall aim of this objective in manufacturing companies is to ensure that the raw materials needed in the production process are acquired, in the right quantity and quality and from viable sources. The implications this has is that if the wrong raw materials are bought, the entire production process is stalled and the company might end up making losses or producing poor quality products that do not meet the customers specifications(Matthews & Schneller, 2011).For the purchasing process to be efficient and effective, there must be keen undermentioned of the whole process and knowledge of the supplier markets. Opportunities must, therefore, be identified, internal operations managed and all focus direct towards achieving this objective. In identifying opportunities, suppliers with the highest quality and cost friendly products are selected. Ensuring diversity in suppliers selected could also be in force(p) to the company. The purchasing department has the responsibility of choosing the best suppliers, using the most viable criterion to choose the most current suppliers as they are usually very competitive. Internal operations involve managing procurement staff effectively, formulating policies and strategies. Proper leadership in the purchasing department, collaboration and teamwork helps in achieving this objective (Matthews & Schneller, 2011).For the purchasing

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