Create a business plan
This step is considered one of the most important necessary to improve and develop the purchasing department, through which the business objectives are analyzed and converted into purchasing objectives, which requires identifying the necessary resources and tools so that the plan of action works at its best. . Risks and crises must not be overlooked. You can counteract this plan or impede its progress; In order to implement preventive solutions to avoid them before they happen; This helps achieve the desired goals of creating this plan, documenting operating programs, and linking company-specific goals to purchasing strategies.
Analysis of the current situation of the company
This step is considered one of the first to be taken before starting to develop the purchasing department. It is necessary to study the current state of the company and know its structure; By considering the organization's production schedules and budgets and desired goals; This helps to identify and discover the necessary needs before starting the development and improvement phase.
Know your strengths and weaknesses
The purchasing department must be studied by evaluating the efficiency and effectiveness of the work performance of its employees; In order to identify areas that need improvement and development; As the presence of weaknesses will prevent the achievement of the planned goals of the company. Weaknesses greatly affect the capabilities and skills of the team, leading to the appearance of gaps during work, which require attention and treatment by conducting training courses for employees in the field of purchasing management and others that help develop the acquisition of skills of employees. , or by providing real opportunities that allow employees to meet with experience and competence in this field to benefit from their experience.
Measurement of the performance of the purchasing function
The performance of the purchasing function, which is an indicator of the success of the purchasing department, can be measured by investigating the following:
- Cost reduction: This is done by comparing the cost of a previously purchased item to the current purchase cost, where the current cost value must be lower than before.
- Quality improvement: It is done by comparing the current quality of the product with the previous quality, noting that there is a change for the better as a result of applying new strategies represented by changing suppliers, or negotiating with the current supplier.
- Reduce transportation costs: Reducing transportation costs is a measure of the effectiveness of the purchase process, which is through the application of new purchasing strategies that require negotiating with carriers, comparing the prices offered and making offers for reach the best service and the best service. at the lowest cost.
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