The performance of seven different types of procurement
Based on the characteristics of different types of procurement, we can complete the task more appropriately. Now I will bring you the specific performance in procurement management. In the following seven aspects:
1. Characteristics of small organizations with a single product
1. Purchasing personnel do not have much say in strategic direction.
2. Procurement decisions are divided, and other departments have no say.
3. Procurement and supply activities are not professionalized, and buyers are responsible for many procurement projects.
4. The purchasing manager may report to the production management department or the financial department manager.
5. The status of personnel in the purchasing and supply department is low.
2. Assembly line production organization
1. The purchasing department has a great say in corporate strategy.
2. High professionalism in production activities, such as raw materials, inventory control, etc.
3. There are also professional requirements in procurement activities.
4. The purchasing and supply manager may be a functional department.
5. Personnel in the purchasing and supply department have a higher status.
3. Important manufacturing industries
1. Raw materials account for a high proportion of costs.
2. Continuous supply is very heavy.
3. Requires strong professional knowledge.
4. The head of the purchasing department belongs to senior management, and purchasing work requires well-trained participation.
4. Extractive industry
1. There is no procurement of raw materials.
2. The cost of capital goods is very high. For example, mining equipment is often expensive.
3. Important spare parts and maintenance are required. Due to the harsh working environment, the equipment is easily damaged, and the loss caused by shutdown is huge.
4. Often in remote places.
The timely supply of equipment and spare parts is very important in the mining industry. The inventory of equipment and spare parts is of high value. To ensure the normal production, the purchasing department must ensure the performance of the equipment and control costs and inventory. . In some large companies, the top management may be directly responsible for managing procurement.
5. Distribution and retail industry
1. Procurement expenditure accounts for about 80% of the total cost.
2. Do not change the product form.
3. Influenced by fashion.
4. Stimulate demand through advertising.
5. Inventory selection and control are very important.
Competition in this type of industry is fierce and net profit is relatively low, usually less than 5. Because of the high proportion of procurement spend, procurement specialization is critical. The purchasing executive is at the top. There is a well organized purchasing department that liaises with the marketing department.
6. Service industry
In the service industry, it mainly provides personnel with professional skills. In the service industry, materials generally account for a small proportion of total expenses. For important materials and equipment, procurement is usually done by functional departments rather than the purchasing department.
7. Public facilities industry
Mainly includes:
1. Public facilities industry.
2. Local authorities.
3. Government departments.
4. Medical and health care departments.
5. Army.
In the public transportation industry, except for the public facilities industry, other departments and organizations generally have no sales revenue, and their funds are provided through government taxes, local charges, etc. Procurement is generally arranged by departments responsible for government procurement, and sometimes specialized agencies are entrusted with procurement. ;