Determinants of a Modern Purchasing Department

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 department is a modernised one or not. One can use this checklist as a set of goals which you aspire.

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

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

 Articles on Materials Management.....

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Crisis in Purchasing & emergency Planning

Negotiation Questions from suppliers that can Surprise you
The Supplier Code of Conduct
Entering into a Time and Materials Contract
Supplier's bid Comparison Formula
Supplier Diversity Program
Determinants of a Modern Purchasing Department
Negotiating With Suppliers Over their Policies
Procurement Project Management Plan
The Purchasing Risk Analysis
Inventory Audit Checklist
Hazards Of Purchasing profession
Tactical vs Strategic Purchasing
Demystifying Group Purchasing Organizations
Suppliers' Secrets For Negotiating With Purchasing
Cost Savings Reporting: Dot Your I's!
Code of Ethics in Purchasing
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