Understanding the Purchasing Function
Translated by
ScribdTranslationsUnderstanding the Purchasing Function
Translated by
ScribdTranslationsSidi Mohamed Ben Abdellah University
Higher School of Technology - Fès
Marketing and Communication Techniques
Exposé:
The Purchasing Function
Framed by: Prepared by:
Mr. Fouad ANSWER *Mlle ELFARIS Laila
Miss LAZRAK Hasnae
Plan
Introduction
I- Definition and evolution of the purchasing function
A- definition
B- evolution
C- impact of the purchasing function on the company's activity
II- The objectives of the purchasing function
A- Supplier Management
B- Assurance of the fluidity and reliability of flows
III- The purchasing process and the importance of the buyer's role
A - purchasing process
1- purchase in an industrial company
2- purchase in a trading company
B- the profession of buyer
1- the evolution of the buyer profession
The importance of a good buyer
3- the role of the buyer in the case of SMEs
IV - the new facets of the purchasing function
The purchasing function is at the heart of the company's competitiveness.
B- the objectives of monitoring
V- purchase management
A traditional approach to the purchasing function
B- modern approaches: Supplier Management
C- Case of SMEs
VI- the performances of the FA
FA as a source of profitability for the business
B- the vector of innovation
VII- The development tools of the purchasing function
1- Internet
2-e-procurement
3-sourcing
4-TIC
5-the EDI
6-Intranet
conclusion
Introduction
La rentabilité de l’entreprise dépend en grande partie des choix réalisés lors de
the acquisition of production goods, raw materials, goods
or various services necessary for its operation.
Because purchases account for an average of 60% of a company's revenue.
is today identified as strategic in an economic environment of
increasingly competitive
I- Definition and evolution of the purchasing function
A- Definition:
The purchasing function is the function ensuring the availability of the E/s of
products and services essential to its activity, in accordance with its needs
security, performance, and total cost
B- The evolution of the purchasing function:
1- In financial terms:
In the early 1980s, the purchasing function represented between 40 and 60% of the revenue.
of industrial E/s business. At the end of the 1980s, this share represents
between 50 and 70%.
The movement continues and purchases are reaching 60 to 80%.
2- In functional terms:
The buyer was only interested in the raw materials and the products of the screen.
As a base, he is currently responsible for sorting suppliers in order to establish connections with them.
long-term relationships. He is responsible for the adaptation of processes
procurement performers.
The purchasing function becomes an element of the strategy in the company
So the performance of the purchasing function requires a good buyer who can evolve.
to functions of manager or director in the purchasing department or of
the supply.
C- The impact of the purchasing function:
The purchasing function has a direct influence on growth.
performance of purchases in such a way that they can:
Provide the cost and quality of service.
Plan the overall framework of the activity of the E/se.
Succeeding in the Supplier/Client relationship.
Well detect the implicit needs of internal clients.
II - The objectives of the purchasing function
A- Supplier management:
Supplier management has two aspects:
Calling on a single supplier places the company
In a privileged client position
The use of multiple suppliers allows for the benefit of
specific advantages of each supplier and distribute the risks
B- Ensure the continuity and reliability of flows:
The purchasing function ensures the continuity and reliability of the
raw materials, finished or semi-finished products; since the design of a
product until its receipt by the customer
III - The purchasing process and the importance of the buyer's role
A- purchasing process
1- Purchase in an industrial company:
The steps of the industrial purchasing function are as follows:
The first consists of determining the actual needs of the company.
The second step is to determine who can trigger the authorization.
of purchase, from which supplier and in what quantity.
Purchase in a trading company
Distributors have focused their efforts mainly in two directions:
An evolution of distributor-manufacturer relations in order to reduce the
stocks
the reduction of order procurement costs through the use of the tool
computer science
A- Buyer profession:
1- The evolution of the buyer profession:
Traditional Buyer Category Manager
ITS HIERARCHICAL LEVEL HIS/HER HIERARCHICAL LEVEL
Middle management. Senior executive.
HIS QUALITIES HIS QUALITIES
Negotiation tactician. High-level strategist.
Man product. Multifunction (products; marketing and logistics).
Work on the short term. work on the long term (one to three years).
YOUR MISSIONS HIS MISSIONS
Focuses solely on the produced offer of Interested in products and all services
industrial. offered by suppliers.
Is situated in a context of confrontation with its Consider manufacturers as partners.
suppliers. Manage a profit center.
Manage a cost center Relys on in-store sales analyses.
Little concerned about in-store sales. seeks to optimize the sales space of its
Does not act on the implementation of the ray. category.
Participe aux actions promotionnelles des Responsible for promotional actions
stores. stores.
Gère les approvisionnements sans prendre en Optimize logistics costs.
account for the entire supply chain.
2- l'importance d’un bon acheteur
The buyer is characterized as having a global vision of the objectives of
the company and must be able to meet the specific expectations of the different
department, master all the steps related to purchasing, negotiate the
purchase and supply conditions and establish relationships with suppliers
potentials
3- cases of SMEs
The reduced size of a company's purchasing team forces the buyer to lose.
a lot of time
IV - the new facets of the purchasing function
The purchasing function is at the heart of the company's competitiveness.
Far more than an intermediary between the requests of the E/s
and the suppliers, the buyer now intervenes at several levels
from the E/se, he positions himself as a "facilitator" for the applicants
The buyer has become an essential player to ensure competitiveness
of the company.
V- Purchasing Management
A - traditional approach to purchasing management
Know the upstream market
Expressing needs
Provoking the offer
Evaluate, select the suppliers
Negotiate with suppliers
Commander
Ensure the tracking and receipt of the order
B- the modern approach: supplier management
In many organizations, procurement is no longer a simple
administrative process: It becomes a strategic data.
1-supplier management:
This term means that the business is seeking to gain a competitive advantage by
the establishment of strategic relationships with suppliers.
The buyer-supplier partnership:
This partnership is based on a 'long-term mutual dependence between
a buyer and the suppliers.
C- Cases of SMEs
In order to make their 'voice' heard, SMEs are meeting at
the purchasing group for a product
VI - the performance of the purchasing function
The purchasing function as a source of profitability for the company:
Because purchases account for an average of 60% of sales.
Today, the purchasing function is identified as strategic.
He is increasingly associated with the management of the company and
seat on the Management Committee.
B- The purchasing function as a vector of innovation
In a context of constant competition for innovation, the FA plays a key role in
the company, since the buyer:
Encourages the introduction of technological innovation in the manufacturing of a
product
master the development relationship