What Is a Procurement Department?

Purchasing refers to an enterprise business activity in which an enterprise obtains products or services from the supply market as enterprise resources under certain conditions to ensure the normal production and operation of the enterprise. It refers to a business activity in which individuals or units obtain products or services from the supply market as their own resources under certain conditions in order to meet their own needs or to ensure the normal production and business activities.

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Purchasing means that an enterprise obtains products or services from the supply market under certain conditions.

(1) The so-called procurement is the process of obtaining resources from the resource market

The suppliers that can provide these resources have formed a resource market. In order to obtain these resources from the resource market, it must be purchased. In other words, the basic function of purchasing is to help people obtain all kinds of resources they need from the resource market.

(2) Procurement is both a

Common procurement forms are divided into strategic procurement (Sourcing), daily procurement (Procurement),

It is the buyer's plan based on the determined supply agreement and terms, and the company's material demand time plan.

Purchasing outsourcing means that the enterprise will gather all or part of its procurement business activities while concentrating on its core competitiveness.

1. Quality ^[3]

Divided into direct materials (BOMmaterial) and indirect materials (

Gather information, inquiry, price comparison, bargaining, evaluation, sample request, decision, purchase, order, coordination and communication, reminder, purchase inspection, sorting payment

Purchasing decisions should be based on proper business orientation, reflect a cross-functional approach, and be aimed at improving the company's bottom line costs. ^[4]

Occupation profile

1.1 Occupation Name

1.2 Occupation Definition

1.3 Career Level

This profession is divided into four levels, namely: buyer (

Purchasing staff (commodity manager)

1. Lack of effective communication during the procurement process. In the previous procurement work, as a separate functional department, the procurement department worked relatively independently, and rarely had direct contact with other departments in the enterprise, and the procurement staff rarely contacted

Current status of the industry ---- High-quality procurement talents are rare: International procurement, enterprise procurement ^[2]

The National Occupational Standards for Purchasers is the eleventh batch of national occupational standards issued by the national government-accredited professional qualification assessment and appraisal agency (formerly the Ministry of Labor and Social Security). "Formally promulgated. Beginning in 2010, the professional qualification certificate of the national purchaser will be identified and issued by the "Ministry of Human Resources and Social Security" after the merger of the Ministry of Labor and the Ministry of Personnel, and the new certificate will be issued. The issuance of the National Purchasing Certificate and the inquiry from the official website of the country indicate that the vocational training and certification of procurement management personnel in China has been officially incorporated into the legal track of the national examination system, which is universal across the country, without industry and geographical restrictions and distinctions. The national purchaser certificate and skill appraisal have become qualification certificates for procurement employees in seeking, serving, remuneration and benefits. It is the government and enterprise employers recruiting and hiring material procurement management cadres and staff, as well as matching skill levels with wages and pensions. The important basis for the integration of insurance and medical insurance is also a valid certificate for notarizing the skill level of overseas employment and foreign labor personnel. With the merger of the Ministry of Labor and the Ministry of Personnel, the merger of professional qualifications and professional titles has become an inevitable trend.

The State Council's Decision on Vigorously Developing Vocational Education clearly states that: Employers must strictly implement the rules of training before employment and training before employment to obtain vocational school diplomas, vocational qualification certificates, and occupations. Priority is given to those who have qualified for training.

In order to further cooperate with the government to vigorously promote the national professional qualification certificate system for purchasers, and through effective vocational training and national certification, the comprehensive quality and professional ability of procurement management cadres in China's enterprises (employees) and institutions can be effectively improved. The Ministry of Human Resources and Social Security authorizes our center to conduct comprehensive training for national professional qualifications of purchasers. Those who pass the examination can obtain the National Vocational Qualification Certificate of the People's Republic of China issued by the Ministry of Human Resources and Social Security. "(National Vocational Qualification Certificate Level I and Level II).

Africa < br Trading habits: purchase by sight, one-handed payment, one-handed delivery, or consignment on credit.
Order quantity: small quantity, many varieties, urgent shipment matters needing attention: Pre-shipment inspection of imported and exported goods implemented in African countries, which increases our costs in actual operation, delays our delivery time and hinders the normal development of trade .
South Africa < br Transaction habits: Credit cards and cheques are widely used, and "customer first pays later"
Note: Due to limited funds and high bank interest rates (about 22%), they are still accustomed to see payment or installment payments, and generally do not open sight letters of credit.
Morocco < br Trading habits: Use low reported value and cash payment.
Precautions:
Morocco generally has higher import tariffs and stricter foreign exchange management. The D / P method has a greater risk of foreign exchange collection in the country's export business. Moroccan customers and banks colluded to pick up the goods first, delayed payment, and repeatedly urged us to pay at the request of domestic banks or export companies.
Turkey < br For imports into Hong Kong, 6.3% to 13% of taxes are payable.
United States <br /> Trading habits: less samples and larger quantities, but larger orders and lower profits.
Denmark < br Trading habits:
Danish importers are generally willing to accept a form of payment when they do their first business with a foreign exporter. Thereafter, cash vouchers and 30-90 days forward payment or acceptance documents are usually used. Orders starting with a small amount (sample consignment or trial sale order)
In terms of tariffs:
Denmark grants most-favoured-nation (MFN) treatment or more preferential GSP to goods imported from some developing countries, Eastern European countries, and countries along the Mediterranean coast. In practice, however, tariff preferences are rarely received in steel and textile systems, and countries with larger textile exporters often adopt their own quota policies.
Precautions:
Requires the same sample, and pays great attention to the delivery time. When a new contract is performed, the foreign exporter should specify the specific delivery time and complete the delivery obligations in a timely manner. Anyone who violates the delivery date and causes delayed delivery may be cancelled by the Danish importer.
Portugal < br For imports into Hong Kong, the tax is 6.3% to 13%.
Spain <br /> Transaction method: Payment by letter of credit, the credit period is generally 90 days, large chain stores about 120 to 150 days of order volume: about 200 to 1,000 orders each time Note: the country enters There is no tariff on products. Suppliers should reduce production time and focus on quality and goodwill.
United Nations < br Notes:
Chinese companies first apply to become their suppliers, and secondly they take the initiative to apply for bids. Strive to enter the short list on the basis of establishing credibility. The United Nations has recognized some outstanding suppliers through its long-term contacts with suppliers. In the case of some smaller purchases, large-scale bidding is not carried out, and suppliers on the short list are proactively contacted and the transaction is immediately made. Those who can enter the short list are generally the top ten companies of a certain product, which is equivalent to directly entering the final in the competition, which is very beneficial to winning the bid. Of course, this requires the quality of the enterprise itself and the quality of the product.
It is worth noting that responses to United Nations communications must be answered whether or not they are bidding. The UN requires that suppliers be disqualified without responding 3 times. Therefore, if the address, telephone, fax or e-mail address of a business is changed, the United Nations should be notified in a timely manner.
The procurement of the United Nations is different from general business dealings. It attaches great importance to openness, transparency, equality and integrity, and never bargains. Therefore, companies must quote the real price when quoting, that is, the final price. Doing business with the United Nations must be cheap and good quality. You cannot make a one-time profit and make money. You must make a profit by establishing credibility and long-term purchasing relationships.
Middle East < br Trading habits:
Through indirect transactions through agents, direct transactions performed indifferently. Compared to Japan, Europe, and the United States, the product requirements are not very high.
Pay more attention to color and prefer dark items. But the profit is small and the volume is not large, but the order is fixed.
Precautions:
Special care must be taken by agents to avoid price reductions in other ways. Attention should be paid to follow the principle of Yinuoqianjin. As soon as a contract or agreement is signed, it should be fulfilled due diligence, even if it is verbally promised. At the same time, we should pay attention to customer's inquiry. Keep a good attitude and don't worry too much about a few samples or sample mailing fees.
Eastern Europe < br The Eastern European market has its own characteristics. The level of product requirements is not high, but if you want to achieve long-term development, large quality goods with poor quality have no potential.
Mexico < br Trading habits: Generally, L / C spot payment terms are not accepted, but L / C forward payment terms are acceptable.
Order quantity: The order quantity is small, and it is generally required to see the order.
Precautions:
The delivery time is not too long. The country's procurement needs to meet the conditions and relevant regulations as far as possible, and secondly, it is necessary to improve the quality and grade of products to meet international standards. The Mexican government requires that all electronic products must be imported with a Certificate of Quality Standard (NOM) from the Mexican Ministry of Industry and Commerce in advance.
Russia <br /> As long as the Russians do business, direct wire transfers via TT are more common after signing a contract, and they are required to ship on time. It is rare to open an LC, but it is not easy to find a connection, only through a show or a local visit .
The local language is mainly Russian. English communication is rare and difficult to communicate. Generally, translation assistance is sought.