Purchasing management

articleissues
article = y
refimprove = November 2007
expand = November 2007

Purchasing management is the management of purchasing process, and related aspects in an organization. Because of production companies purchase nowadays about 70% of their turnover, and service companies purchase approximately 40% of their turnover [citeweb
url = http://www.mb.utwente.nl/ompl/chairs/utips/education/
title = UTIPS education
publisher = University of Twente
date = 2006-02-13
accessdate = October 2007
quote = Production companies purchase nowadays approximately 70% of their turnover, service companies purchase approximately 40% of their turnover!] , purchasing management is one of the most critical areas in the entire organization and needs intensive management.

Purchasing Process

Purchasing Process includes as usual 8 main stages as follows:

#Requisitioning
#Approving
#Studying Market
#Making Purchase Decision
#Placing Orders
#Receipting Goods and Services Received
#Accounting Goods and Services
#Receiving Invoices and Making Payment

Purchasing Management Process

Purchasing Management Process consists usually of 3 stages:

#Purchasing Planning
#Purchasing Tracking
#Purchasing Reporting

Purchasing Planning

Purchasing Planning may include steps as follows:

*creating purchasing projects and tasks
*providing related information (files, links, notes etc.)
*assigning purchasing tasks to employees
*setting task priorities, start/finish dates etc.
*assigning supervisors
*setting reminders

Purchasing Tracking

Purchasing Tracking consists of:

*checking task's status and/or history of changes
*receiving status notifications
*sorting, grouping or filtering tasks by current status
*highlighting overdue tasks

Purchasing Reporting

Purchasing Reporting includes:

*comparing actual and estimated values
*calculating purchasing task and project statistics
*sorting, grouping or filtering tasks by attributes
*creating charts to visualize key statistics and KPIs

References