What are the functions of suppliers?
Functions of Suppliers
Each stage of the procurement process is an opportunity for more profit for the company. Amrep Inspect includes choosing the best supplier, getting the best prices, ordering the right amount of goods, an efficient method of transportation, and minimizing losses from defective goods – in short, everything where a company can reduce procurement logistics costs and thereby achieve greater profits. And all the tools the purchasing manager uses in his work exist precisely to help him make the right decisions and control the process of goods movement. Global supplier Management.
The roles and responsibilities of a purchasing manager may vary from company to company.
Model “performer”
When the volume of production or the importance of future sales for each item of goods is known with a high degree of certainty, the critical task of the purchasing manager is reduced solely to the strict implementation of the purchase plan.
Model “expert”
The expert’s task is to find goods that will be sold quickly.
Genius Model
The task of the “genius” is to find a seller who is ready to provide the highest quality product at the lowest prices and offer substantial payment deferrals, and best of all, payment upon sale and with the right to return unsold copies.
The logistics model
Sometimes, due to the characteristics of some markets, as well as the scale and age of the company, the tasks of finding suppliers and the lowest prices are not the main ones for the
purchasing department. All suppliers are known, the conditions are agreed upon, and they are not subject to significant changes. In such a situation, the main task of the purchasing manager becomes optimization, i.e., ensuring the flow of resources by the logistical rule “Seven N.”
Based on introducing a motivation system for purchasing managers, Amrep Inspect must develop a clear purchasing policy. Depending on the model of buyers preferred for the implementation of this policy (“expert,” “executor,” etc.), it is necessary to select personnel, create a system for its control and use the indicators of the motivation system.
The primary purpose of the purchasing manager is to provide the production or trading process of the company with resources (goods and services).
To achieve this goal, the Amrep Inspect put forward the following functions:
- Ensures the availability of goods in the optimal quantity and assortment.
- Provides planned indicators for the turnover of product groups.
- Prepares orders for suppliers.
- Tracks order fulfillment.
Regularly monitors the availability and sales of high-demand goods to prevent their shortage. We can study new proposals from suppliers and market conditions at Amrep Inspect.
Summarizes and brings the received information to the management.
Timely informing the company’s divisions about new offers and receipts of goods ensures the availability of the necessary information about the goods in the information and accounting system of the company.
Depending on the tasks performed, areas of professional knowledge and skills are determined.
The purchasing manager must know :
- methods of managing financial flows in logistics;
- all components of the supply contract;
- factors to consider when choosing a supplier and carrier;
- ways to improve the efficiency of procurement management using information technology;
- the use of electronic data interchange when interacting with suppliers;
- procurement methods;
- operations that make up the “Purchase” business process;
- functions performed by various intermediaries in the process of order fulfillment;
- the procedure for drawing up the contract;
- sanctions applied in case of failure to comply with the terms of the agreement;
- ethics of business communication.
The Purchasing Manager must be able to:
- offered by suppliers;
- make an overview of the supplier market;
- analyze supplier reliability;
- examine the terms of delivery provided by suppliers;
- negotiate with suppliers (in terms of determining prices, terms of delivery, etc.);
- compare offers received from different suppliers;
- analyze and draft contracts;
- build strong business relationships with suppliers that strengthen the image and reputation of your company;
- fulfill all agreements with suppliers promptly, and do not leave any issue unresolved;
- take measures to pay off debts in settlements with suppliers.
To successfully perform professional duties, a buyer needs to have an analytical mindset, and systems thinking, be attentive, be able to act effectively in stressful situations, control their activities, be able to plan and prioritize, have a large active vocabulary and be able to intelligibly convey their thoughts to people with different level of education.
A special place is occupied by communication skills, such as persuasion, negotiation, mastery of basic communication techniques, the ability to compromise (with suppliers and other departments of the company), activity, perseverance, the ability to achieve one’s goal, responsibility, and decency, stress resistance, endurance and patience in conflict situations.
The purchasing manager works with large volumes of information. This is information about suppliers, the delivery order, transportation, and payment. The analytical activity of the purchasing manager is to compare prices, quality, and delivery times and choose the best option; in product market analysis. At the same time, a special place is occupied by the decision-making process in a short time.
Purchasing manager works in the office. Its activities are carried out using telephone, fax, Internet, and computer (work with professional programs, databases, Internet; writing reports, etc.).
Difficult for most professionals in the field of procurement logistics are conflicts with the sales department (production department) and problems of interaction with difficult suppliers (for example, with monopolists in the market). Production Management solutions.
Amrep Inspect provides directions for advanced training of a procurement manager are:
- We are improving the methods of professional communication.
- Training in negotiation skills.
- You are mastering planning the working day and organizing the procurement process.
- Development of teamwork.
- Improvement of knowledge in production, the study of types and types of products, customer demand, sales technologies, and legal aspects of procurement activities.
