In the last decades, purchasing has assumed greater responsibilities in a wide range of areas, including those not seen as traditional purchasing activities, as companies strive to maximise profits and create competitive advantages for themselves through their supply practices, below I have compiled a report on the main functions of effective purchasing in the industry. I hope it will be a useful guide to help you through the coming weeks at Bensons as you learn the ropes of the company and indeed the industry itself.
Quality has always been one of the key issues in purchasing. The traditional definition of quality meant meeting specifications or conformance to specifications. In the total quality management context, the definition was enlarged to represent a combination of corporate philosophy and quality tools directed towards satisfying customer needs. With influence over materials and services from suppliers, the purchasing function plays a key role in the final quality of the final product or service. Even in its simplest definition quality continues to represent significant challenges, in its broader context it may well determine an organisations ability to survive and prosper in the years ahead. Quality in the simplest sense refers to the ability of the supplier to provide goods and services in conformance with specifications; quality also refers to whether the item performs in actual use to the expectations.
Purchasing by specification is one of the most widely used methods in the industry, a lot of time and effort has been expended in making it possible to buy on a specification basis. It is becoming common practice to specify the test procedure and results necessary to meet quality standards as part as part of the specification as well as instructions for handling, labelling, transportation, and disposal to meet environmental regulations. Traditional advantaged of buying with specifications include: .