Savings and lower costs are also discussed in detail to yield more profitable results.
The competitive world of today is forcing businesses and organizations to save and survive by reducing costs. The procurement unit is one of the critical departments established in organizations and institutions to save and reduce costs.
Organizations must have assets in order to carry out more beneficial purchasing activities, to ensure fair competitive conditions, to create accuracy and transparency, to use the budget effectively and efficiently, to convey project goals and objectives in more detail and to advance the process in a timely manner.
Purchasing department’s job description includes: finding the best price for the goods/services planned and to be purchased can also include ensuring these goods/services are of the desired quality, reducing unnecessary costs, accelerating processes, improving relations with suppliers, managing agreements, and finding the right suppliers for production steps.
The purchasing department should also be able to monitor the current data. It should be able to follow the latest regulations and developments. Engage with international suppliers and be able to use online tenders and open research systems. Ability to automate manual transactions using the systems of such technical and technological infrastructure.
It should be noted that the procurement department is associated with almost all departments. In particular, it collaborates with the finance, accounting and production departments, if any. An organized purchasing department will help you keep your business one step ahead.
If we can explain the functioning of the procurement unit through an example; If you think you're going to buy a PC for your business, there are lots of details about your needs, quality, features, price, model, brand, level of satisfaction, warranty period, technical support, whether it's enough for you or whether it's a fault condition. This ranking varies for each account and unit.
As a result, you can figure out what purchasing really is. Neither the profit alone nor the price element should be considered as a sole consideration in purchasing. Negotiating is just as important as these two things. In order to make an optimum purchase, efforts should be made to buy the best product by negotiating with suppliers. It is necessary to proceed with comparisons and in a conscious manner.
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What Does a Procurement Engineer Do?
Who is a purchasing engineer? What does he do?
"Purchasing Engineer; it is a professional title given to the person with strong research skills who can manage negotiation and purchasing processes of companies and who plans the price, quality and logistics of the materials to be purchased." 1.
Businesses that used to work with highly-accepted suppliers in their immediate vicinity are rapidly giving up on this old approach. Businesses that are aware of the diversity and opportunities in the market are pursuing a more efficient business process by purchasing engineers at their purchasing departments. The supply, price and logistics of the purchased materials were not taken into account, causing losses for businesses without noticing. Purchasing engineers are the people who perform more advantageous purchasing transactions with many ideas and plans to solve these problems.
The technical specifications of the product to be purchased must be observed and the contracts and procurement process must be secured by purchasing engineers. It is necessary to conduct a price study by taking prices from many suppliers in the market. The quality and price of the service should be optimal.
Pre-calculation of cost also forms the basis of a healthy purchase. You can make the purchase with the best possible offer. You should pay attention to details such as currency and track the exchange rates efficiently.
There are also systems, which make it easier to monitor all these processes with the impact of technology. Purchasing software, which controls purchasing processes completely, makes small details easy for you. SmartProcure provides convenience to your purchasing department and manager with its advanced software infrastructure.
1. https://www.kariyer.net/pozisyonlar/satin+alma+muhendisi