purchasing and materials management
1. Describe how Purchasing interacts with other functional areas of the company.
The strategic role of purchasing is to perform source-related activities in a way that supports the overall objectives of a business. It can make many contributions to the success of that organization through its key role as one of the organizations’ boundary-spanning functions. Purchasing can gain important information about new technologies, potential new materials or services, new source of supply, and changes in market conditions through external contact with the supply market. To take advantage of market opportunities by communicating this competitive intelligence, purchasing can help reshape the business’s strategy. Purchasing can help the supplier development and relationship management team by supporting the organization’s strategic success by identifying and developing new and existing suppliers. Getting suppliers involved early in the development of new products and services or modifications to existing offers can reduce development times. Virtually every department relies on the purchasing function within an organization for some type of information or support. Purchasing role ranges from a support role to a strategic functions. Purchasing often has some of the same functions of reporting relationship as logistics. This can helpful for coordinating management. Purchasing and logistics need to work closely in coordinating inbound logistics and associated material rows.
2. What is the impact of Purchasing Strategy on manufacturing inventory?
If an organization purchases from suppliers and uses those products to make a products and sale them, then you have a supply chain. Some are simple yet some can be more complex depending on the size of the business and the intricacy and numbers of items that are manufactured. The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. Then they
The strategic role of purchasing is to perform source-related activities in a way that supports the overall objectives of a business. It can make many contributions to the success of that organization through its key role as one of the organizations’ boundary-spanning functions. Purchasing can gain important information about new technologies, potential new materials or services, new source of supply, and changes in market conditions through external contact with the supply market. To take advantage of market opportunities by communicating this competitive intelligence, purchasing can help reshape the business’s strategy. Purchasing can help the supplier development and relationship management team by supporting the organization’s strategic success by identifying and developing new and existing suppliers. Getting suppliers involved early in the development of new products and services or modifications to existing offers can reduce development times. Virtually every department relies on the purchasing function within an organization for some type of information or support. Purchasing role ranges from a support role to a strategic functions. Purchasing often has some of the same functions of reporting relationship as logistics. This can helpful for coordinating management. Purchasing and logistics need to work closely in coordinating inbound logistics and associated material rows.
2. What is the impact of Purchasing Strategy on manufacturing inventory?
If an organization purchases from suppliers and uses those products to make a products and sale them, then you have a supply chain. Some are simple yet some can be more complex depending on the size of the business and the intricacy and numbers of items that are manufactured. The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. Then they