Competition and technology are redefining the ways business is
to be conducted today. The old and the by gone methods and
concepts are giving way to the new ones. Purchasing being a key
business function can't remain aloof. After all, for many
companies Purchasing is their real customer face Modernisation
of Purchasing function is a priority.
The purchasing function has changed dramatically over the last
several years. And it continues to change and evolve almost
daily.
Following are criteria that determine if your Purchase deptt. is
a modernised one or not. One can use this checklist as a set of
goals to which you aspire.
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1.The head of purchasing reports directly to the CEO of your
company
2.Your department is responsible for procurement in
"non-traditional" spend areas such as healthcare benefits, fleet
management, facilities and construction, temporary labor, and
travel.
3.Purchasing is actively involved in senior management level,
long-term strategic planning
4.The purchasing staff is responsible for manually placing only
a small percentage of your organization's purchase orders
5.Logistics and inventory functions either fall under
Purchasing on the organizational chart or are integrated into
the work of purchasing staff |
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6.Maverick buying is a thing of the past
7.When dealing with large, frequently used suppliers, no paper
is exchanged between the time that a need for a product or
service is defined until the time that the supplier receives
payment
8.No major sourcing process is conducted without the use of
a cross-functional team
9.You are buying from global sources and
measuring non-domestic spend as a percentage of total spend
10.Your department has social responsibility goals and
measurements in place |
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