How Do I Choose the Best Procurement Jobs?

Purchasing decision-making refers to the management process of proposing various feasible procurement schemes, evaluating and comparing the schemes, selecting the feasible schemes, implementing and implementing the procurement schemes in accordance with the principle of satisfaction, according to the requirements of the business objectives of the enterprise. Purchasing decisions are an important part of business management. The key issue is how to formulate the best purchasing plan, determine a reasonable amount of merchandise purchase, and create the greatest economic benefits for the enterprise.

Purchase decision

Right!

Purchasing decision-making refers to the management process of proposing various feasible procurement schemes, evaluating and comparing the schemes, selecting the feasible schemes, implementing and implementing the procurement schemes in accordance with the principle of satisfaction, according to the requirements of the business objectives of the enterprise. Purchasing decisions are an important part of business management. The key issue is how to formulate the best purchasing plan, determine a reasonable amount of merchandise purchase, and create the greatest economic benefits for the enterprise.

Chinese name

Purchase decision

Process

According to the requirements of business goals

Results

Propose various feasible procurement options

Purpose

Evaluate and compare options

Good

Create maximum economic benefits for enterprises

Features

Predictive, etc.

Purchasing decision is an important part of enterprise decision, it has the following characteristics:

(1) Predictability. Refers to making predictions about future purchases, which should be based on market forecasts.

(2) Purpose. The purpose of any procurement decision is to achieve certain procurement goals, such as reducing procurement costs.

(3) Feasibility. It means that the decision-making plan chosen should be practicable, otherwise the meaning of decision-making will be lost.

(4) Evaluation. Evaluability refers to the analysis and evaluation of various feasible schemes and the selection of satisfactory schemes.

Enterprises face a large number of decision-making problems in production and operation activities. Decision-making is one of the tasks that managers spend most time and energy on. Scientific decision-making can grasp the correct business direction, promote benefits and avoid disadvantages, promote strengths and avoid weaknesses, and have a positive effect on improving the survival and competitiveness of enterprises. In addition to the general role of risk avoidance and increased vitality, purchasing decisions can also play the following important roles.

1) Optimize procurement activities

Purchasing activities have an important impact on production and operation engineering, product costs and quality. In order to ensure the realization of various objectives of the enterprise, it is necessary to promote the optimization of procurement activities, optimize the procurement methods, procurement channels, and procurement processes, and improve the procurement resources. Good configuration.

2) Achieving just-in-time procurement

In order to meet the needs of just-in-time production, punctual procurement should be implemented, and reasonable procurement decisions make punctual procurement possible.

3) Improve economic efficiency

Under certain conditions such as product specifications, quality, and services, accurate procurement can reduce purchase prices, reduce inventory, and reduce various expenses, so that enterprises can obtain greater profits and improve their competitiveness. Purchasing activities are affected by many factors, and there is a specific relationship between them. Failure to handle any of these factors may affect the improvement of economic benefits.

Purchasing decisions are related to the quality of the procurement work, which is a complex task and must be carried out in accordance with certain procedures. The basic procedures are described below.

(1) Determine the procurement goals

According to the company's overall business goals, determine the company's procurement goals. The overall goal of enterprise procurement is to achieve timely and accurate procurement, meet business needs, reduce procurement costs, and improve economic efficiency. According to the overall purchase target, specific purchase targets can be formulated, such as order volume target, order time target, supplier target, price target, delivery target, etc.

(2) Collecting relevant information

Information is the basis of purchasing decisions, and the reliability of information determines the correctness of purchasing decisions. Information is divided into external information and internal information according to different sources.

* 1) Enterprise external information includes the following:

o Macro-level laws and economic policies.

o Information on sources of supply.

o Scientific and technological information.

o Transport information.

o Peers with the same needs. Where do peers buy from and how much do they buy? Are there more economical materials? Can they purchase jointly to reduce the purchase price?

* 2) The internal information of the enterprise includes the following:

o Material demand. According to the sales plan and production plan, formulate the demand plan, and then combine the inventory situation to develop the purchase plan.

o Availability. Such as the company's inventory capacity, how much inventory costs, the current inventory of goods.

o Financial situation. Such as whether there are sufficient procurement funds, the turnover speed of procurement funds, and the financing situation.

o The purchasing team of the company. Including the professionalism, comprehensive quality, and cooperation spirit of purchasing staff.

(3) Draw up multiple feasible solutions to achieve the goal

(4) Choose a satisfactory plan

In view of the above various schemes, comprehensive analysis is performed to select a satisfactory scheme. The choice of scheme is a process of analyzing and evaluating various feasible schemes. The specific evaluation standards vary from company to company and external environment.

In actual work, even if the market conditions are constant, different types of enterprises will use different judgment standards according to their own conditions. Satisfactory solutions are not necessarily the most profitable ones, but the most beneficial and feasible ones for the enterprise.

There are many contents of purchasing decisions, including the selection of suppliers, the selection of purchasing channels, and the selection of varieties, specifications and quality of purchased goods. There are different decision-making methods for different decision-making content such as purchase timing, purchase batch, purchase price, etc. There are many methods for purchasing decision-making, both quantitative and qualitative. There are mainly purchasing staff estimation method, expected value decision-making method, manager's opinion method, mathematical model method and direct observation method.

1) Purchasing staff estimation method. This method is to convene some purchasers with rich purchasing experience, solicit their opinions on a certain decision-making problem, and then combine their opinions to form a decision-making result.

2) Expected value decision method. This method makes decisions based on historical data.

3) Manager opinion method. This method asks the manager of the department before making a decision. If the company wants to choose the right supplier, the manager's opinion method can be adopted.

* The specific steps are:

o Seek the opinions of managers from various departments such as purchasing, production, technology, sales, and finance, and each manager will give different ratings according to their own standards.

o Aggregation, phasing out some suppliers by score.

o Have managers rate the remaining suppliers.

o Repeated iteratively until the right supplier is selected.

This method requires multiple iterations, is time consuming, and has poor feasibility.

4) Mathematical model method. In order to achieve the goal of the lowest total cost of purchasing and storage, the enterprise must use the economic batch model to calculate the optimal purchasing batch. It is worth noting that the use of mathematical models must pay attention to the conditions of use.

5) Direct observation method. When deciding on simple problems, the decision makers of the procurement department will eliminate the non-compliant solutions according to certain standards or key procurement standards, and arrange the solutions that meet the standards in order of priority and feasibility, and select satisfactory solutions.

In short, according to the characteristics of decision-making problems, choosing one method or a combination of methods can improve the accuracy of purchasing decisions and reduce procurement risks.

(5) Implementation and feedback

With the procurement goals and a satisfactory procurement plan, specific implementation rules must be formulated to enable the procurement plan to be implemented. At the same time, we should also pay attention to collecting and sorting out new situations and problems in the implementation of the plan, and make necessary adjustments to ensure the realization of procurement goals.

Finally, check and analyze the implementation of the procurement plan. In the implementation and feedback process, the actual implementation situation should be compared with the original decision goals.