Purchasing department: its structure and purpose

Many companies and organizations in their work come to a conclusion about the need to create special structural unit, called the purchasing department.Its main task is to search for and cooperation with suppliers of high-quality materials and raw materials, as well as a set of qualified specialists able to organize efficient work in the department.With the right approach, a new division, of course, require additional time and costs, and financial resources, but in the future will bring many more benefits, since it will contribute to the maximization of profit.

The most important point is considered to be the process of the formation of a new division, since it is necessary to set clear goals and objectives which it must perform, as well as to outline specific responsibilities and job requirements.No less difficult issue is the selection of personnel.The Procurement Division should be under the guidance of an intelligent, outgoing person who is capable not only in the shortest possible time to make decisions, but also to find individual approach to each counterparty.The Head also includes the creation of a job description, binding on all employees of the company.This document shall contain the rights and duties of staff, a measure of responsibility for violations or deviations from the work schedule.Each item must contain clear information readily understood by all employees.

Specialists division develop a list of products necessary for the regular replenishment of the company, and then begin to search for contractors.With their choice should be based on the objectives pursued by the department.For example, if the goal of the company is to reduce the cost of the finished product by reducing the prices of purchased materials, while experts are searching for raw material of acceptable quality, but at a lower price.Working with suppliers is one of the most important moments, because with proper negotiation expert can achieve significant discounts on the goods did not have to sacrifice quality characteristics.From the foregoing, it is clear that the department really helps to reduce costs without compromising the firm.

When a purchasing department, the head of the process should be divided into several phases or stages, each of which has a specific task and motivation for action.In general terms you can imagine four stages:

  1. job descriptions are compiled, approved by a list of employees matching the presented criteria.Instruction should be designed so intelligently to a specialist, not a single question about what the company does and its specific division, and what are his responsibilities.Simply put, on the first stage, the structuring of the department, that is, the distribution of the functional requirements of each employee.The structure of the department should be based on rational allocating tasks.At best, all suppliers should be distributed so that one employee had no more than five companies-contractors.
  2. planned system of personnel development, for example, be estimated to hold further seminars or sending special achievers colleagues refresher courses.
  3. A system of compensation of employees, including the rate schedule and a bonus scheme, which allows to reward individuals for success in work.Various bonuses and premiums are highly motivated to improve their own abilities, and for the company it serves as a tool to increase efficiency.
  4. As a final step necessary to allocate the organization system of control.Procurement Division applies to units in which turn a lot of financial resources.Their intended use must necessarily be controlled and regulated.