Six elements of purchasing management theory
1. Quality
Quality means different things to different people, high quality products and services is to meet or exceed customer requirements or expectations of products and services. The meaning of quality is different from person to person, depending on each person”s position in the supply chain. For customers, for example, high quality products mean in terms of performance, appearance and price to meet the need of the products; For product design personnel, the quality is the nature of the products meet the functional requirements; For manufacturing personnel, quality means with the minimum cost to produce products that meet the order specifications. The definition of other relevant quality include:
(1) products or services to meet the specific needs of all of the features and properties.
(1) products or services to meet the specific needs of all of the features and properties.
(2) suitable for use.
(3) meets the requirements.
(4) product features to meet the requirements of its should reach, including reliability, maintainability, and safety.
If the definition of quality to meet or exceed customer requirements or expectations, also figure out how to measure quality. “Total quality” (TQM) concept built on the basis of all the relevant personnel to actively participate in, it pay more attention to the system procedure and process, rather than focusing on providing goods and services. Total quality shows that in the supply chain, suppliers, customers and employees will enter decided the quality of the link. Inspection and evaluation of suppliers, for example, replaced by the following methods: common to eliminate defects, focus on prevention rather than detection and correct mistakes. Supplier must be as “Allies” at this stage, it needs as well as its customers have enthusiasm, their obligations to quality management, rather than to “review” supplier by the buyer.
If the definition of quality to meet or exceed customer requirements or expectations, also figure out how to measure quality. “Total quality” (TQM) concept built on the basis of all the relevant personnel to actively participate in, it pay more attention to the system procedure and process, rather than focusing on providing goods and services. Total quality shows that in the supply chain, suppliers, customers and employees will enter decided the quality of the link. Inspection and evaluation of suppliers, for example, replaced by the following methods: common to eliminate defects, focus on prevention rather than detection and correct mistakes. Supplier must be as “Allies” at this stage, it needs as well as its customers have enthusiasm, their obligations to quality management, rather than to “review” supplier by the buyer.
2. Quantity and delivery time
Different departments within the enterprise when faced with a number of problems, because of the different department interests, they have different requirements for each number. As production department put forward the demand for purchase or inventory quantity can meet the requirements of production, production will not happen because of the shortage; Inventory management attention is how to improve the level of products and services as much as possible, reserve more goods to meet the needs of the production department; Procurement staff is more concerned about the economy of each time order, the order number whether economy, how to reduce the order cost; The financial department is concerned with how to reduce the inventory goods to tie up money, for them, the lower the inventory, the better.
On the demand quantity, inventory quantity and ordering quantity is balance between the challenge every procurement staff, because do not always need the number of orders. It is suitable for individual requirements, such as change or replace a new machine tool factory, but most of the procurement activities are for regular regular demand. Order the application of some order again and again in the policy. Although the amount of the purchase from the point of view of long-term and need the same number, but different procurement policy will lead to different order quantity.
china sourcing agent
On the demand quantity, inventory quantity and ordering quantity is balance between the challenge every procurement staff, because do not always need the number of orders. It is suitable for individual requirements, such as change or replace a new machine tool factory, but most of the procurement activities are for regular regular demand. Order the application of some order again and again in the policy. Although the amount of the purchase from the point of view of long-term and need the same number, but different procurement policy will lead to different order quantity.
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