THE IMPORTANCE OF PURCHASING MANAGEMENT

Text     : Muhammad Syahmi Bin Mohd Zaludin
Images : Google Images

In the name of ALLAH, The Most Gracious and The Most Merciful,

Manage the purchasing wisely!

Assalamualaikum. For the second post, we would like to discuss about the importance of purchasing management.

Purchasing management is considered by many organization as an important and essential component for any business. Those companies recognize the cost savings that can be obtained from an effective purchasing decisions that will lead their companies to rise more and become prominent in the field of business nowadays.

The main importance of a purchasing management is the cost control. 

Control the cost efficiently!

The purchasing manager will eventually analyze which suppliers are supplying the best quality of raw materials and assembly parts at the reasonable prices. Starting from this point of advantages, they will review the background of the supplier in form of their on-time shipments, reputation and warranties.
 
Switching suppliers is costly and finding the best suppliers is a must to all company who would like to meet the customer requirement and at the same time grab the opportunities to become the leader in the industries. 

Second, the purchasing management need to secure their supply chain.

 

Supply chain!

The company who act as the buyer from another supplying firm need to ensure  that all of the necessary raw materials and assembly parts  appears on time with expected quality and quantities according to the order. 

Delay of shipment will bring disaster

In case there are any delay of shipment, the effect will eventually affect the whole supply chain. It will create loses to be bear by the company and gives bad experiences to the customer whom we are dealing with.

Third, the purchasing management is playing the role in ensuring the customer satisfaction.

In most companies, the purchasing managers have two typical obligation in their minds which are the quality of the product and also the on-time deliveries.

Customer satisfaction is the key towards success!

 

Good quality product gives great satisfaction!

Poor quality of products or services will give bad reputation to the company. It leads towards rejection of any further demand from customers. They may change their supplier if we happen to deliver the goods not according to their requirement. Thus, the purchasing manager and purchasing team need to play a critical role in shaping the customer's experience with the company they are dealing with.

Put this smile on your customer faces!

Don't annoy your own customer!

In a nutshells, purchasing management are playing essential roles in an organization. In order for them to generate more profitable gains, they need to start it with a great team of purchasing management. Through purchasing, we are able to create anything and delivered them to the customer according to the right price, right quality, right quantity, right place and right time.