Dear Sir, Can please explain what are all the value added service a procurement manager can execute ?
From India, Chennai
From India, Chennai
Dear Magesh,
May I know why are you raising this query? Are you student or working professionals? If latter, then what type of work do you do? What is the nature of your industry? What type of raw material do you purchase in general?
The biggest value that procurement professionals add is by maintaining the procurement spend at a specific level. This is much easier said than done. To do this requires a great amount of coordination with production and sales, coordination with stores personnel.
Value addition also comes from fostering a collaborative relationship with the suppliers. For this purchase managers need to make their own Vendor Development Plan (VDP).
Value addition comes from the implementation of the various tools of strategic procurement. How one-time personnel management has transformed into HR Management, same way erstwhile Materials Management has transformed into Supply Chain Management (SCM). SCM requires the free flow of material as well as information. No blockage of inventory at any place. By reducing inventory at various stages i.e. inventory of raw material, work in process inventory and inventory of finished goods, procurement professionals reduce the working capital blocked up various stages. Can there be any better "value addition" than this?
In fact "Purchase" management is a little misnomer. Ideally, it can be called the "Savings" department. Every penny saved in purchase straightway goes to the profit.
I handle extensively training programmes on "Purchase and Inventory Management" related subjects. To know more about my training activities in this field, you may click the following links and download the respective documents:
Dinesh V Divekar - Procurement Faculty
Programme Structure for Various Training Programmes in Purchase and Inventory Management
Thanks,
Dinesh Divekar
+91-9900155394
dineshdivekar(at)gmail(dot)com
From India, Bangalore
7736May I know why are you raising this query? Are you student or working professionals? If latter, then what type of work do you do? What is the nature of your industry? What type of raw material do you purchase in general?
The biggest value that procurement professionals add is by maintaining the procurement spend at a specific level. This is much easier said than done. To do this requires a great amount of coordination with production and sales, coordination with stores personnel.
Value addition also comes from fostering a collaborative relationship with the suppliers. For this purchase managers need to make their own Vendor Development Plan (VDP).
Value addition comes from the implementation of the various tools of strategic procurement. How one-time personnel management has transformed into HR Management, same way erstwhile Materials Management has transformed into Supply Chain Management (SCM). SCM requires the free flow of material as well as information. No blockage of inventory at any place. By reducing inventory at various stages i.e. inventory of raw material, work in process inventory and inventory of finished goods, procurement professionals reduce the working capital blocked up various stages. Can there be any better "value addition" than this?
In fact "Purchase" management is a little misnomer. Ideally, it can be called the "Savings" department. Every penny saved in purchase straightway goes to the profit.
I handle extensively training programmes on "Purchase and Inventory Management" related subjects. To know more about my training activities in this field, you may click the following links and download the respective documents:
Dinesh V Divekar - Procurement Faculty
Programme Structure for Various Training Programmes in Purchase and Inventory Management
Thanks,
Dinesh Divekar
+91-9900155394
dineshdivekar(at)gmail(dot)com
From India, Bangalore
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