Purchase Management, Objective And Role In An Organization

Purchase management is an important subject taught to students studying human resource management. It helps management students improve the overall business performance. The decisions that are made by the management regarding purchasing greatly effects the profit percentage of an organization. Purchasing management is used to ensure that the purchasing decisions tally with the objectives of the organization. Which in turn takes your business to the next level. If you wish to write flawless assignments on purchase management students need to avail plagiarism free assignment help from SourceEssay assignment writers.

Role Of Purchase Management

The key role of purchase management is to monitor the decisions related to purchases that are taken by the management of an organization. These decisions decide whether the company is going to incur profits or run into losses. Purchase management also defines the sale of a product or service by keeping an eye on the external factors those results in the change in decisions taken by the management. For example rise and fall of stock prices.

Objectives Of Purchase Management

Students can seek immediate assistance from HRM assignment help SourceEssay if they need someone to explain to them the key objectives of purchase management. To give a brief overview of the same students need to understand why reward management system has been designed in an organization and what can the marketers achieve out of purchase management.

You’d be surprised to know that more than the marketers it is the target consumers who are benefited through proper purchase management system.

· Purchase Management Leads To Value For Money

The key factor that defines whether the purchase made is profitable or not depends on the product or service provided to the company is valuable to the company or not. The value of the particular product or service provided to the organization depends on the objectives of an organization. If the quality of the product or service is at par with the organization’s objective than its value for money. For example if the objective is to sell products to customers at a rate they can easily afford than through purchase management it is ensured that the target consumers get the best price available in the market. And, if the objective is to sell products at premium prices then purchase management highlights the key aspects of an organization such as its brand value to convince their target consumers that the price offered for a particular product or service is justified.

· Good Purchase Management Leads To Long Term Relationship With Suppliers

Purchase management is a continuous process a positive approach taken in purchase management leads to a healthy relationship between the marketer and the supplier. Marketers get a lot of facilities from their suppliers that they are not offered otherwise. These advantages include getting products or services in lower prices, quality service from their suppliers, and round the clock assistance. It builds a relationship between the marketer and supplier that grows stronger with time.

Sets Benchmarks For Suppliers

Purchase management also helps suppliers set benchmarks that define their rates of failures so that they don’t lose everything they have earned over the years. Through continuous evaluation suppliers frame objectives based on which purchase management is monitored.

Integrated Information Systems

The best part about using purchase management in an organization is that suppliers don’t have to go though the traditional manual surveys to understand the market requirements. Traditionally when purchase management was done marketers used to conduct different kinds of surveys that were done manually to understand their market requirements. But with the passage of time integrated information systems came into existence. These systems auto generated answers to various queries and helped marketers get inside the stock of their suppliers as and when required so that they could check for themselves whether the product they are seeking for is available in their stock or not. Today with the help of these integrated information systems marketers can check the stock of their suppliers and it spares them the hassle of asking their suppliers about the products or services.

Final Takeaway

Thus, it can be said that purchase management ensures that marketers get value for money for their products and services. It also helps in building a strong bond between the marketers and suppliers; it stops a supplier from running into complete losses by setting benchmarks. Suppliers are able to constantly evaluate their performance so that the company can earn maximum profits b following the strategies framed and at the same time also adhere to the company policies and objectives. Most importantly the strategies used by organizations helps in automating the manual survey systems so that suppliers an get answers to their questions by taking a peek at the services offered by the marketers which spares them asking questions and taking surveys. If you need help in writing assignments in purchase management you can now avail essay help online from SourceEssay.