What is Procurement/Purchasing job?
"I joined my company in the role of an Internship Administrator. At beginning time, I intend to follow the Marketing field, but just after 3 months work for purchasing staff position, I've been attracted completely by this position where every key decision and successful contract can affect on the business results of a big corporation. Beside that, there are many interesting missions and challenges everyday" a student said.
Purchasing definition:
Purchasing is the process of collecting or buying goods and services. That is a preparation or consideration all demands as well as receiving and payment. It's related to:
(1) Build a plan for buying
(2) Define the standard
(3) Research and choose the suppliers
(4) Analyze the value
(5) Evaluate the financial conditions
(6) Negotiate the rates
(7) Purchase the goods
(8) Manage the supply contract
(9) Control the inventory
(10) Pay and other function involved
Purchasing procedure is usually a part of business strategy, ability of buying materials will decide if other activities can be successful or not. There is no any enterprise may survive with the input materials price higher than the output products revenue and the products cannot be bought with the price higher than the market price.
What work does a purchasing staff have to do?
1. Summary:
General, a purchasing staff has to ensure that the materials and input services to serve for maintaining and developing a production operation will be provided from reliable suppliers as per agreement in advance. The most important problem that is the purchasing staff need to look for the biggest value for the company through dealing delivery time and goods price with suppliers.
2. Specific activities:
Discussing directly with Planning and Production department to build a specific plan for purchasing activities and sort them into a priority order.
Evaluate the ordering plan, make a buying request and manage the selection process.
Send details and support necessary documents for suppliers
Follow up status of orders, ready for handling any trouble related to lack or excess of goods, contact directly with other departments involved.
Tracking orders and confirm production time, delivery time and cost with suppliers.
Evaluate, update and maintain status of orders until end.
Ensure that orders comply with agreement articles in contract, report results to manager.
Manage financial and logistics staff team to receive and handle false invoice.
Define opportunities and perform to get effective.
Contribute to consolidate, decrease cost significantly due to local suppliers.
To have opportunity work at purchasing field, you have to prove a lot of key skills to employers, such as business aptitude, financial management ability, communication skill, negotiation skill, knowledge about foreign market, creative thinking and innovation.
In strategic purchasing environment nowadays, the most successful individuals should know how to combine traditional buying skill and relationship management skill - the ability to listen, understanding, communication and empathy.
The skill of traditional buying, such as financial management, contract management, cost reduction and basic negotiation will be always a background of the buying process.
The present relationship with suppliers is relatively balanced. Buyers and suppliers work together from the beginning time of negotiation to share information, training, support, technical input and ideas to reduce total cost. At the same time, buyers also need to work closely with their clients to ensure that demand will be met and optimize this process.
Evaluate the ordering plan, make a buying request and manage the selection process.
Send details and support necessary documents for suppliers
Follow up status of orders, ready for handling any trouble related to lack or excess of goods, contact directly with other departments involved.
Tracking orders and confirm production time, delivery time and cost with suppliers.
Evaluate, update and maintain status of orders until end.
Ensure that orders comply with agreement articles in contract, report results to manager.
Manage financial and logistics staff team to receive and handle false invoice.
Define opportunities and perform to get effective.
Contribute to consolidate, decrease cost significantly due to local suppliers.
Which skills does a purchasing staff need to have?
To have opportunity work at purchasing field, you have to prove a lot of key skills to employers, such as business aptitude, financial management ability, communication skill, negotiation skill, knowledge about foreign market, creative thinking and innovation.
In strategic purchasing environment nowadays, the most successful individuals should know how to combine traditional buying skill and relationship management skill - the ability to listen, understanding, communication and empathy.
The skill of traditional buying, such as financial management, contract management, cost reduction and basic negotiation will be always a background of the buying process.
The present relationship with suppliers is relatively balanced. Buyers and suppliers work together from the beginning time of negotiation to share information, training, support, technical input and ideas to reduce total cost. At the same time, buyers also need to work closely with their clients to ensure that demand will be met and optimize this process.
Why should you consider to select purchasing job?
As a buyer, you are working for an important position in the company. However, because the buyer usually works behind "the scenes", so many people don't think about considering purchasing as a choice for their job. The top-buyers are being sought very strong around the world so they can reach a top position in their company. It doesn't matter where they are looking for goods suppliers at local or international market? Buying necessary services and human resources as per reasonable price can affect directly to the success of a company, especially in a difficult economy nowadays.
Now, purchasing is becoming a job very "hot" in Vietnam. Especially due to the explosion of information technology present days, the distance between buyers and suppliers seems to be shorter. That isn't only an opportunity, but also a challenge for new buyers. However, with the logistics knowledge in your mind, it will be a useful instrument to help you pass any trouble in this job.
As a buyer, you are working for an important position in the company. However, because the buyer usually works behind "the scenes", so many people don't think about considering purchasing as a choice for their job. The top-buyers are being sought very strong around the world so they can reach a top position in their company. It doesn't matter where they are looking for goods suppliers at local or international market? Buying necessary services and human resources as per reasonable price can affect directly to the success of a company, especially in a difficult economy nowadays.
Now, purchasing is becoming a job very "hot" in Vietnam. Especially due to the explosion of information technology present days, the distance between buyers and suppliers seems to be shorter. That isn't only an opportunity, but also a challenge for new buyers. However, with the logistics knowledge in your mind, it will be a useful instrument to help you pass any trouble in this job.
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