Purchasing management

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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 ^[1], purchasing management is one of the most critical areas in the entire organization and needs intensive management.

1 Purchasing Process
2 Purchasing Management Process
3 Purchasing Planning
4 Purchasing Tracking
5 Purchasing Reporting
6 References

[edit] 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

[edit] Purchasing Management Process

Purchasing Management Process consists usually of 3 stages:

Purchasing Planning
Purchasing Tracking
Purchasing Reporting

[edit] 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

[edit] 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

[edit] 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

[edit] References

^ UTIPS education. University of Twente (02/13/2006). Retrieved on October 2007. “Production companies purchase nowadays approximately 70% of their turnover, service companies purchase approximately 40% of their turnover!”