The necessary professional knowledge of procurement is as follows:
One, procurement profit leverage effect
Procurement in business management has an important position in the first place because of the existence of procurement, "profit leverage effect". Top managers of enterprises to find ways to work on procurement, for the enterprise "squeeze" out more profits, but also because of this makes the procurement department is more and more by the micro-profit era of the senior managers of enterprises to pay more attention.
As an example, it is every income of $100,000, it will get $10,000 profit, and this $100,000 income will be $50,000 for procurement, we assume that the purchasing department after the efforts to reduce the purchase cost of 2%, then in the profit will increase by $1,000, if the change to get this $1,000 profit by increasing the sale of the words, then to increase sales by 10% in order to realize that sell more than $10,000 to do. That is, sell an extra $10,000 to do so.
But do not simply compare 2% and 10%, because to reduce purchasing costs by 2% does not seem difficult, but in practice, we may have to work for the 2% of the effort, and sometimes after the effort but still may not achieve the goal.
Two, procurement to reduce costs and technological innovation
In addition to the direct reduction of procurement prices, procurement can also be an indirect way to contribute to the improvement of the competitive position of enterprises. This indirect contribution comes in the form of standardization of product varieties, reduction of quality costs and shortening of product delivery times. In practice, these indirect contributions are often more tangible than direct monetary savings.
Responsibilities of the Purchasing Department
I. Core Responsibilities
1. Ensure the normal supply of products and services required by the unit to support the smooth operation of the unit's production and other business activities;
2. Continuously improve the purchasing process and the process of supplier management in order to improve the quality of the goods;
3. Control and reduce all costs associated with the purchasing Costs, including direct procurement costs and indirect procurement costs;
4, the establishment of optimal supply support system;
5, the use of suppliers of professional advantages, and actively participate in product or process development;
6, the establishment and maintenance of the enterprise, the company's good image;
7, the management and control of procurement-related documents and information. In particular, to collect information about the quality of goods accidents, focusing on the goods that cause product quality or equipment failure information, this information will also serve as an important basis for evaluation of suppliers.
Second, other duties
From the perspective of procurement management, other duties include the development and implementation of procurement policy, strategy, process, objectives and improvement plans and procurement and supplier performance measurement, the establishment of supplier auditing and accreditation, assessment and evaluation system, to carry out self-assessment of the procurement system, the establishment of the training of a stable and creative professional procurement team and so on.
Responsibilities of Purchasing Management Department
1, Supplier Selection and Evaluation
2, Ensuring the Company's Advantage in Purchasing Price
3, Formulating Purchasing System and Designing Reasonable Purchasing Processes
4, Improving the Purchasing Efficiency
5, Controlling Purchasing Risks
Overall Purchasing Cost
The overall purchasing cost is also known as strategic purchasing cost. >Overall purchasing cost, also known as strategic purchasing cost, is in addition to the cost of purchasing taking into account the cost of raw materials or components in the process of the entire life cycle of the enterprise's products, which includes purchasing in the market research, homemade or purchasing decisions, product pre-development and development of the suppliers involved in the development of the supplier, the supplier's delivery, inventory, production, shipment and testing, after-sales service and other costs incurred in the supply chain of the whole process of the cost on the The cost impact of each link in the entire supply chain.
By function, overall purchasing costs occur in the following processes: development process, procurement process, planning process, quality process, and service process.