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6 (Six) Core Purchasing Division Strategies-One Of The Risk Management

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6 (Six) Core Purchasing Division Strategies-One Of The Risk Management
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6 (Six) Core Purchasing Division Strategies

After that in the previous article, I commented on 9 simple but effective things in the Purchasing division to increase the company's profit, so on this occasion, I will be speaking about 6 (six) core strategies of Purchasing division-one of them is risk management.

The six core strategies are as follows:

1. Supplier Optimization

One of the most common and well-done by almost all companies is conducting research and research and choosing a combination of suppliers that can provide the most competitive price with good quality of goods.

The relationship factor between companies and suppliers is:

Mutual benefit for the parties, namely companies and suppliers.
Partnership or collaborative relationship between the company and suppliers.
Cooperative technology relationship to simplify the process.
Higher time efficiency and improved product competitiveness.

2. Total Methods and Quality Management

TQM (Total Quality Management) is a quality management system that focuses on customer (Customer focused) by involving all levels of employees in conducting continuous improvement or improvement (continuously).

In the process of TQM need goods and services provider to supply a quality service continues to increase with a commitment to zero faults. They should ensure the best buying practices by using some approved quality tools, (such as six Sigma) while including ongoing measurements and human resource management.

3. Risk Management

Many companies have acquired supplies of raw materials and other supporting goods from diverse countries such as China and India, which have raised concerns about the risk management of this supply chain. Although the price you get can be very profitable, there are threatening dangers and we cannot control.

Some of the potential risks include:
  • Physical damage to the production process.
  • Natural disasters.
  • Labor strikes and disputes.
  • Capacity problems.
  • Inventory issues.
  • Wrong estimate.
  • Delay or delay delivery of goods.
A supply chain management system needs to take note of this risk by taking a comprehensive approach to taking risks across the global supply chain in a sustainable process.

4. Global Procurement

Global Procurement
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Global Sourcing is a mode that is currently trending in purchasing goods for large multinational companies that need to source supply and service from vendors regardless of their home country.

A successful global sourcing strategy should involve some of the following:
  • The final cost, where all the factors involved are incorporated in it.
  • Assess applicable laws in all supplier countries.
  • Currency differences and fluctuations.
  • Time.
  • Culture and language.
  • Transportation and delivery.

5. Vendor Development

The three main factors that have contributed to the awakening of the perceived value of partnership with the supplier are:
  • A complex business model requires companies to move assembly facilities closer to the market and location of its customers to reduce costs.
  • The advancement of technology and research and development capabilities leads to a shorter product life cycle. With the advent of new versions and the latest product innovations, it means that products that have been in production will become obsolete more quickly.
  • Lean Manufacturing and concept cost per unit demands that a manager should continue to find ways to reduce the cost of procurement as well as the procurement of logistics costs. Companies present many suppliers who move their storage warehouses closer to buyers.
The company has realized that to develop a global business model, they need to build partnerships with suppliers through collaboration, by investing in developing supplier capabilities, and by appreciating partnership relationships in the form of long-term cooperative relationships.

6. Purchase Green

Over the last nearly two decades, growing concerns about the quality of the ecosystem have led to a new interest in the field of environmentalism, especially in many customer bases. Professional purchases are now rethinking purchasing strategies and not buying goods originating from companies that ignore the environmental impact in the process.

Some of the issues that have evolved lately include:
  • Ecological factors will greatly influence the decision of the supplier selection.
  • Role "green " purchase of goods in reducing and eliminating waste.
  • The effect of the "green " Purchase on the packaging decision.
  • Effectiveness of compliance with existing regulations, pollution prevention, and resource recovery.
  • Policy on workers.
Ultimately, whatever your purchasing strategy, the result is that you will endeavor to make a cost-effective purchase decision from the expense side of some efficient vendors that will provide guaranteed quality goods promptly and with the requirements in line with your company.

Hopefully, this article can be useful and can add to your insight.


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