For any potential manufacturing company to attain its potentials, the purchasing executive must be successful. This success is measured by his ability to ensure prompt and efficient or uninterrupted supply of purchased materials and services to the organization. The term efficiency as used is referred to the ability of the purchasing executive to procure the required materials and services needed for commercial operations at a reasonable cost which at the same time conforms with quality and quantity specifications.
Purchasing which is the act of acquiring goods and services in exchange for price has also been in existence even before the invention of written records.
Thus , the importance of purchasing function in an organization does not only apply to business organizations but also in other non-profit and service organizations such as churches, government hospitals, schools, charity organization and corporations.
DEFINITION
Professionals have defined buying in various ways; some see it from the point of view of a process of exchange of goods and services for money.
Some others see the term as one of the basic element of trading.
Carter (1976:6) defined purchasing as the “process of defining organizational needs, selling suppliers, agreeing on terms, placing orders and receiving the goods and services”.
Meathy (1987:10) on his part defined purchasing as a “dynamic profit center that is expected to ensure maximum returns in the course of materials exchange for money.
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ROLES OF A BUYER IN MANUFACTURING COMPANY
A buyer ensures that materials of the right quantity, from the right source/supplier, at the right price are delivered/are made available at the right place.
A buyer ensures that adequate plans are always in place with regards to delivery schedules. This is to ensure that both production and machines personnel are not idle.
The major role of a buyer is in the areas of materials pricing, analysis, in attaining this it is essential that the buyer maintains records with regard to suppliers brochures, price lists, condition and terms of contract of every supplier.; this will not only be maintained but must be kept effectively.
Installation of a good information management system can be very helpful to a buyer.
The buyer takes advantages of favourable price situation especially in an unstable market.
Order Processing: This entails the collection and processing of all documents pertaining to the external and internal transitions. Such document would include; customers" orders, shipping manifest, invoices, loading forms, payment receipts, warehouse storage data, pallets collection etc. order processing is generally referred to as the wok flow associated with the picking, packing and delivery the packed materials for onward shipping to the customers location Purchasing manager, buyer and purchasing agents buy a vast array of farm products, durable and nondurable goods and services for companies and institutions. They attempt to get the best deal for their company, the highest quality goods and services at the lowest possible cost. They accomplish this by studying sales records and inventory levels of current stock, identifying foreign and domestic suppliers, and keeping abreast of changes affecting both the supply of, and demand for, needed products and materials. Purchasing professionals consider
price, quality, availability, reliability, and technical support when choosing suppliers and merchandize. To be effective, purchasing professionals, must have a working technical knowledge of the goods or services to be purchased.
There are several major types of purchasing managers, buyer, and purchasing agents. wholesale and retail buyers purchase goods, such as clothing or electronics, for sale. Purchasing agents buy goods and services for use by their own company or organization. Purchasing agents and buyers of farm product purchase goods such as grain, Christmas trees, and tobacco for further processing art resale.
Purchasing managers usually handled more complicated purchase and many supervise a group of purchasing agents. Purchasing professionals employed by government agencies of manufacturing firms usually are called purchasing directors, managers. or agents, sometimes they are known as contract specialists. Purchasing professional professionals in government place solicitations for services and accept bids and offers through the internet. some purchasing managers, called contract or supply managers, specialized in negotiating and supervision supply contract. Purchasing specialists who buy finish goods for resale are employed by wholesale and retail establishments, where they commonly are known as buyers or merchandize managers. Wholesale and retail buyers are an integral part of a complex system of distribution and mechanizing that caters to the vast array of consumer need and desires.
Wholesale buyers purchase goods directly from manufacturers of from other wholesale firms for resale to retail firms, commercial establishments, and other organizations. In retail firm, buyers purchase goods from wholesale firms or directly from manufacturers for resale to the public.
Buyer largely determines which products their establishment will sell.
Therefore, it is essential that they have the ability to predict what will appeal to consumers. If they fail to purchase the right products for resale, buyers jeopardize the profits and reputation of their company.
They keep track to inventories and sales levels checks competitions"
sales activities and watch general economic conditions to anticipate consumers buying patterns. Buyers working for large and medium-sized
forms usually specialized in acquiring one or two lines of merchandize, whereas buyers working for small stores may purchase the establishment"s complete inventory.
Purchasing professionals often work closely with other employees in a process called “team buying”. For example, before submitting an order, the team may discuss the design of custom-made products with company design engineers, the problems involving the quality of purchased goods with product supervisors, or the issues ins hipping with managers in the receiving department. This additional interaction improves the quality of buying by adding different perspectives to the process.
Evaluating suppliers is one of the most critical functions of a purchasing manager, buyer, or purchasing agent, many firms now run on a lean manufacturing schedule and use just-in-time inventories so any delays in the supply chain can shut down production and potential cost the firm its customers. Purchasing professionals use many resources to find out all they can about potential suppliers. The internet has become an effective tool for searching catalogs, trade journals, industry and company publications, and directories. Purchasing professionals attend meetings.
trade shows and conferences to learn of new industry trends and make contact with suppliers. They often interview prospective suppliers and visit their plants and distribution centers to assess their capabilities. It is important to make certain that the supplier is capable of delivering the desired goods or services on time, in the correct quantities, and without sacrificing quality. Once all of the necessary information on suppliers is gathered, orders are placed, and contracts are awarded to those suppliers who meet the purchaser"s need. Most of the transactions process is now automated through use of the Internet CONCLUSION
In the final analysis a buyer is responsible in maximizing the returns in the course of the materials exchanged for money. Importantly, good
conduct is deemed very vital in purchasing since the agents represent their firms in dealing with customers.
TITLE: TALENT DISCOVERY AND MAXIMUM UTILITY