The purchasing and supply objectives (Purchasing (To ensure the continuous…
The purchasing and supply objectives
A process used by company’s to ensure that their supply chain is efficient and cost-effective
To maximize overall value generated
The higher the supply chain profitability or surplus, the more successful is the supply chain
To look for sources of revenue and cost
Appropriate management of the flow of information, product or funds is a key to supply chain success.
Purchasing is the act of buying the goods and services that a company needs to operate and/or manufacture products.
To ensure the continuous flow of production
Purchasing department helps in ensuring the interrupted production flow through continuous supply of raw material, components, supplies, tools etc. and good equipment with repair and maintenance services.
To increase the asset turnover
The efforts of purchase department result in formation of fixed assets and maintenance of a certain level of investments in inventories
To develop the alternate sources of supply
Exploration of alternate sources of supply of materials increases the bargaining ability of the buyer, minimization of cost of materials and increases the ability to meet the emergencies.
To established and maintain the good relations with the suppliers
Maintenance of good relations with the supplier helps in evolving a favorable image in the business circles