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Explain the contribution of purchasing function to profitability and efficiency of an enterprise?
Wiki User
∙ 9y ago
You have to purchase products in order to make a profit. If you just say you have a product and then don't sell it, you will become broke.
Wiki User
∙ 9y ago
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What Differences exist between proactive purchasing and reactive purchasing?
Proactive purchasing is when you are for the product and reactive purchasing is when you react badly to the product. This is a consumer's way of thinking.
What is the relationship between purchasing and marketing?
the five relationship between purchasing and marketing
How does strategic sourcing work?
Strategic sourcing is a method of purchasing re-evaluating a company's purchasing of products. The process involves systematically checking and evaluating the total price of the supply market (What a company is purchasing), cross referencing it with what they could be purchasing, and establishing a new supply chain. (Purchasing the more cost-effective materials)
What is strategic Procurement or strategic Purchasing?
Strategic purchasing is a methodology used in many businesses to realize the greatest amount of benefit to the company while still effectively managing the costs associated with the acquisition of raw materials and operational components. As opposed to tactical purchasing, which tends to see the purchasing process as somewhat distanced from other functions within the corporate structure, strategic purchasing attempts to promote the most efficient use of all materials throughout the company. The goal ofstrategic purchasing is to increase the bottom line of the company through the most judicious use of purchasing approaches and strategies. One of the ways that strategic purchasing takes place is through the analyzing how money is spent for purchases currently. The idea is to determine if there is any way to enhance the purchasing process through adjusting the guidelines associated with requisitioning materials or placing orders with suppliers. Often, this type of spend analysis will reveal one or two small ways to make the process more efficient and possibly save the company time and money. Strategic purchasing also involves building rapport between purchasers and suppliers. Working together, it may be possible to streamline the advance time needed to process an order with the supplier, thus reducing the need to maintain a larger inventory. Depending on the volume of business done by the company with the supplier, it may also be possible to find ways to expedite delivery as well. The use of strategic planning also means automating as much of the planning process as possible. Tasks that are routine can often be set up for completion by software or other automatic means. This frees purchasing agents to focus on other aspects of the purchasing process and thus increase the chances of using available resources with more efficiency. In the end, strategic purchasing is all about redefining buying habits, processes, and behaviors so that the company enjoys the most benefit. From this perspective, strategic purchasing is not an event, but an ongoing process that involves the interaction of purchasing professionals with suppliers, and the management arm of the corporation.
What is the relationship between purchasing functions and marketing department?
The answer is that marketing and purchasing both uses money. and etc. Such as if i buy an outfit im purchasing something and the marketing department would get benefits.
Explain the contributions of purchasing function to profitability and efficiency of an enterprise?
explain the functions of the purchasing department
What is the impact of purchasing and supplies management on organizational efficiency and profitability?
impact on organizational profitability
The design or organization of a text is its?
Patterns in the organization of purchasing, identi- fied contextual factors that influence its design or analyzed the contribution of the PO to purchasing.
What services does enterprise car hire have?
Enterprise car hire has a variety of services. Some of these include business rentals, renting a truck, or even purchasing one of their many kinds of vehicles.
What promotes economic expansion by purchasing capital goods improving efficiency and research and development?
Private investment
What are some questions to ask before purchasing a high-efficiency furnace?
Some questions to ask before purchasing a high-efficiency furnace are as follows: Is it safe to use? Is it cheap to maintain? Does it emit harmful gases? Are the spare parts readily available? Can one reduce energy bills?
Is there any money to be made in pig farming these days?
The profitability rests first with the business acumen of the farmer. Larger operations are more profitable because of the purchasing power, however, they also cost more to run, of course, which is why business sense is key. Pork is a traded commodity so profitability would also depend on the market.
When purchasing a laptop what do I gain by purchasing one that has 4ghz?
Intel never quite reached 4GHz with the Pentium 4. ... With each subsequent generation Intel inched those clock speeds higher, but preferred to gain performance through efficiency
WhAT Is Example of enterprise resource planning?
Enterprise Resource Planning - ERP' A process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc.
Increasing Fuel Efficiency in Hybrid Crossovers?
When purchasing a Hybrid Crossover you can save money and increase fuel efficiency by putting on low-resistance tires. You may need to negotiate getting low-resistant tires put on when you purchase your hybrid crossover. Otherwise switch them out after purchase. It will be worth it in the long run in the money you save on greater fuel efficiency. Decreasing resistance by 20 percent may result in a five percent increase in fuel efficiency.
What is enterprise resource planning?
Enterprise Resource Planning - ERP' A process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc. For more details visit sage software
Why is purchasing and supplies still fragmented?
Purchasing and supplies may still be fragmented due to decentralized decision-making, lack of a centralized system, different department priorities, and historical practices. Implementation of a unified procurement strategy, technology integration for better communication, and collaboration between departments can help to streamline and consolidate purchasing and supplies processes, leading to increased efficiency and cost savings.
