The power of a good purchasing management

Time puts each of us in our place, and there is no doubt that the complex  economic, financial and business environment, looking like coming to an end and having been left behind, has positioned the purchasing management inside the company structure.

During the years while we were living a period of economic expansion, the main focus was to keep gaining ground, walking over scorched-earth, the fundamental strategic decisions were those focused on the external factors. But the decrease experimented by the turnovers, oriented the point of view to the interior of the company and found out the purchasing function, that, until that moment, had been placed in secondary levels in the organizing structure, with no visibility at all. They did not participate in the direction meetings, did not take part on the strategic decisions, they represented intermediate levels of responsibility and did not have an specific weight in the company, usually they were part of a bigger and more important department.

“Even though, with the margins decreasing and the search of efficiency and resources optimization being vital, purchasing management was recognized as one of the main points to ameliorate the  income statement, resources materialization… In essence, as kick board to hold in order to maintain the profit margins. his new point of view of the purchasing management, has catapulted the purchasing managers to the direction committees, enabling them to get an specific weight in any organization and taking part in the strategic decisions of the company.”

However, the recent discovery on the importance of an adequate organization when shopping, doesn’t only focus on the optimization of resources , cost savings of supplies and  in the hiring of services, but it focuses also in the control and management of stock suppliers. That is, the crisis has affected all organizations equally. Some companies have fallen on the way and the survival of those who exist today has not only depend on the company itself, but on its suppliers too. There have been cases in which a company has financially supported its suppliers , and vice versa, where supplies have supported companies. These type of events can only take place with correct  and responsible management relations with suppliers and clients. Demanding our suppliers an adjusted price and a quality service, but in a sustainable manner, can lead to the implementation of an indefinite and timeless alliance, assuring our supplies and optimizing our costs, at the same time that it allows the survival and growth of our suppliers. However, all this requires a continuous process of control and care in the relationship with our supplier. This will avoid negative impacts in the development of our own business, in that it results positive for the organization’s strategy.

Each day has a stimulation and the current crisis revealed the importance in having in the organization a team of professional buyers that carry out an excellent management of purchasing. After all, purchases are an important investment in companies, and like all investments, they require a previous analysis and the elaboration of their control and pursuit  later on. The function of purchasing must develop strategies of efficiency and control of expense in a continuous manner., allowing  a cost optimization and a reduction in expenditure, resulting in a liberation of resources and an improvement in the income statement.

The development and evolution of purchasing management, that has emerged from the crisis and its supervening needs, should lead us to reflect on its real importance and its permanent establishment, as part of the strategic decision making mechanism in the organization with the consolidation of its presence in the direction committees. We must not forget what has been learned in an obliged manner during the crisis, and we should incorporate it to our corporate culture as an element of added value. The efficient purchasing management has become essential in many aspects of the organization.