PDF Purchasing Performance: Measuring, Marketing and Selling the Purchasing Function

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  1. PURCHASING AND SUPPLY CHAIN MANAGMENT 4 PP | Emmanson's Blog
  2. Purchasing Performance: Measuring, Marketing and Selling the Purchasing Function
  3. Purchasing performance: measuring, marketing, and selling the purchasing function

Purchasing can also help you save by providing better transparency in how your company spends.

PURCHASING AND SUPPLY CHAIN MANAGMENT 4 PP | Emmanson's Blog

This will, in turn, allow you to negotiate better contracts and free up your cash flow. Supply chain management involves sharing and managing risks with suppliers. This can be done by moving the risks to the suppliers who are best able to manage it.

Or it can be done through diversification of supply. The purchasing department has to identify what goods and services are crucial to the company and take the appropriate steps to secure their supply chains accordingly. Often, this comes down to an economic decision, where higher risks can result in lower prices, or vice-versa.

Passing on risk to a supplier or outsourcing a service often requires more management of the supply chain, not less.

Purchasing Performance: Measuring, Marketing and Selling the Purchasing Function

The challenge of the purchasing department is to get the supplier interested in working with your business, getting them to invest in the long-term relationship. The department also has to manage relationships within your company. It has to work with internal stakeholders such as marketing, finance, logistics and distribution to ensure that they are all aligned. Purchasing departments can help to improve quality by establishing target performance levels for quality and then tracking performance against those targets.

Critical to quality characteristics is a typical metric used to measure things such as durability, the look and feel of the product or the timeliness of delivery.


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Some companies work closely with their vendors to develop their processes and assist them in improving quality. Because the purchasing department is always in contact with a variety of outside businesses, it is in an ideal position to source innovative goods and services that can provide a competitive advantage to your business—an edge in either price, quality or convenience.

Purchasing performance: measuring, marketing, and selling the purchasing function

The purchasing department will also play an important role in helping you source supplies for innovative products or services developed by your own firm. Your purchasing department should identify technology solutions to address your supply chain problems. If the only measure of your organization's purchasing performance is forcing down prices from suppliers then not only is your purchasing team failing to add value, they may also be damaging your supply chain and the medium to long-term competitiveness of your organization.

Purchase Analysis - Delivery Performance

Derek Roylance's Purchasing Performance - Measuring, Marketing and Selling the Purchasing Function is a blueprint to help you identify the performance measures and marketing expertise that matter for your purchasing team. Published Aldershot, Hants, England: This resource is available electronically from the following locations dawsonera Copies on shelf at E-Resource.

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