Job expirat
BASIC MANAGEMENT FUNCTIONS AND RESPONSIBILITIES OF PURCHASING FOR THE MAINTENANCE ORGANISATION IN A CONTAINER PORT ENVIRONMENT
BASIC FUNCTION of PURCHASING:
? To help produce more profit for the company.
? Working responsibly in order to save every possible dollar.
? Purchasing really also a sales organisation.
RESPONSIBILITIES OF THE PURCHASING DEPARTMENT
A. Fully Delegated items
1. Obtaining price.
2. Selecting vendors.
3. Control of negotiations.
4. Awarding purchase orders.
5. Follow up delivery promises.
6. Adjusting and settling complaints.
7. Selecting and training of purchasing personnel.
8. Vendor relations.
9. Control of financial commitments.
B. Responsibilities often shared with other areas of the operation
1. Obtaining technical information and advice.
2. Receiving sales presentations and arranging for sales opportunities with interested personnel.
3. Establishing specifications.
4. Scheduling orders and deliveries.
5. Specifying delivery method and routing.
6. Inspection and market research.
7. Purchasing.
8. Inventory and warehousing policy and/or control.
9. Forward buying and hedging policies and procedures.
I0. Construction contracting.
11. Service contracts and agreements.
12. Sale, of scrap, salvage and surplus.
13. Purchasing for employees.
14. Contracting for machines and equipment.
15. General considerations of quantities.
16. Make or buy determinations.
17. Actual carrying out of negotiations.
I8. Customs procedures and problems.
C. Responsibilities often divorced from Purchasing but of particular interest
1. Warehousing and receiving.
2. Payment of invoices.
(All possible job titles or descriptions related to the Purchasing Activity; Buyer, Purchasing Agent, Purchasing Officer or other will be assumed to mean NEGOTIATOR. All staff within the Purchasing Activity are negotiators.)
WHY WE NEGOTIATE
1. To clarify
a. Terms and conditions.
b. Battle of forms.
c. Legal considerations.
d. Small suppliers
2. Specifications
a. Technical requirements.
b. Use of supplier knowledge.
c. Reasonableness
3. Define delivery requirements
a. Unrealistic deliveries cost money.
b. Suppliers capacity loading.
c. Cash flow.
d. Inventory turns.
e. Design changes.
TO DO YOUR TOTAL JOB
(Why some individuals within the Purchasing Activity don?t or won?t negotiate ? what will get you FIRED.)
1. Low quantity or value
a. UNTRUE ? NEVER: Even a short telephone conversation for low volume or value items saves money. ?YOU MUST ASK?!!!
2. Insufficient time to do job
a. Work in an a, b, c order
b. Costs coupled with quality and delivery must bear equal importance
3. Fear of conflict, losing or mistakes
a. Rocking the boat
b. No one likes to be defeated
c. Risk minimization
d. Learn by our mistakes
4. Embarrassed to ask for concessions, Haggling
a. Your in the ?wrong business?
b. Supplier friendships
c. The negative side of gratuities
WHEN TO NEGOTIATE
1. Complex specifications
a. Supplier knowledge
b. Unclear technical requirements
c. No firm design exists
2. Original procurement
a. No previous purchase history
3. Lead time does not permit competitive bidding
4. When the interests of both parties might be maximized
a. Additional related business
b. Long term agreements
5. Fixed price due to patents or business custom
a. Cash discounts
b. F.O.B. points
c. Special stocking
d. Other items
6. When competitive quotations or sole source proposals indicate
a. Unsatisfactory prices
b. Unacceptable deliveries
c. Unacceptable terms
d. Specification variances
R E M E M B E R ! ! !
The seller is paid to:
I) Meet a sales forecast (goal),
II) Maximize profits,
III) Sell you on his products and company. He/she has more training in the art of selling
persuasion than you have in the art of buying or negotiating.
1. Be tactful, poised with self restraint
a. Swearing or anger will no
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Negociabil
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