What is the value of procurement, and what are the 4 core values of procurement?

In terms of the value of procurement, it is the act of purchasing materials to ensure the normal operation of the enterprise. Procurement is one of the basic activities in the operation and management of enterprises. Its importance is first and foremost reflected in his central role in the operation and production of the enterprise.

Any organization, its production and operation required inputs are inseparable from materials, in the operation of an enterprise, the procurement cost of materials accounts for a large proportion, through the effective management of procurement can reduce the cost of materials is a very potential way for enterprises to increase profits. Another importance is his relationship with inventory. Improper procurement can result in a large amount of excess inventory.

Inventory will occupy a lot of capital and management costs for enterprises. From the point of view of quality, the impact of inferior materials on production will be very large, and the potential cost is also very high, in addition to the quality of procurement management will also affect the timeliness of supply, and these are related to the quality and timeliness of the final product of the enterprise. But the most important thing in procurement is the management of procurement.

1. Responsible for the planning of the company's assigned commodities and business development.

2. Screen the best suppliers to cooperate with, and be responsible for negotiating the best procurement transaction conditions.

3. Implement the most effective strategy.

4. Plan a variety of activities.

5. Cooperate with store personnel to expand performance and achieve the goal of gross profit.

Procurement, as an important part of business operations, has always received widespread attention. In procurement activities, negotiation is an indispensable part of it, which is directly related to procurement costs and corporate profits. However, many companies have a misconception that the value of procurement is only realized through negotiation.

So, what are the other aspects of the value of procurement?

First of all, the value of procurement is not only a simple negotiation, but also includes a variety of management in the procurement process. The management of the ** chain can help enterprises improve operational efficiency, eliminate some bottlenecks in operations, reduce costs, and improve customer satisfaction. Through scientific warehouse management, logistics management, inventory management and other measures, it can effectively reduce the operational risk of the enterprise and improve the quality and efficiency of the enterprise's operation.

Secondly, the value of procurement also exists in the selection and evaluation of high-quality suppliers. The selection and maintenance of high-quality suppliers is an indispensable part of procurement activities. Through the evaluation of the information, credit and other aspects of the business, the enterprise can select the first business with stable supply capacity, good reputation and competitiveness.

This can not only help enterprises reduce procurement costs, but also provide enterprises with high-quality raw materials and components, so as to improve the quality and competitiveness of products.

Third, the value of procurement is also reflected in the products and services purchased. In the process of purchasing, enterprises need to properly consider the quality of products and services, delivery time, after-sales service and other factors, and negotiate competitive procurement plans. The right purchase plan can allow enterprises to avoid many unnecessary problems and hidden dangers, and at the same time, it can also reduce the risks and costs of enterprises, and improve the operational efficiency and competitiveness of enterprises.

To sum up, the value of procurement is more than just bargaining. Through reasonable procurement strategies, business evaluation, product and service selection, and procurement and logistics process optimization, enterprises can achieve cost control, risk control, efficiency improvement, and market competitiveness. Negotiation is only a part of the procurement process, and enterprises need not only the best discounts, but also the promotion of intrinsic value through procurement activities.

In procurement activities, enterprises need to consider the overall situation, weigh comprehensively, and uphold the concept of reasonableness, integrity, fairness and win-win in order to achieve the maximum value of procurement.

First, the impact of cost structure: material cost often accounts for the largest proportion of the cost, in the cost reduction focus is to pursue lower procurement costs, to find ways to reduce the overall cost.

2. Affect the delivery cycle and product listing: The delivery and listing of products are inseparable from the cooperation of procurement, and the competition is no longer the competition between companies, but the competition between the best chains.

3. Affect quality: unqualified or unstable material quality will directly cause poor or unstable product quality, which will lead to an increase in cost and loss of market share.

Fourth, the impact of Yingwei Huili: the company's largest cost comes from the procurement of materials and services, and the effect of procurement cost control directly determines the company's profitability.

Principles of procurement:

Purchasing decisions should be based on sound business orientation, reflect a cross-functional approach, and aim to improve the company's procurement bottom-line costs.

Purchasing decisions cannot be made in isolation, and they cannot be aimed at optimizing procurement performance alone. Procurement decisions should be made that take into account the impact of these decisions on other major activities, and therefore need to be based on balancing all total costs.

Procurement should not only function as a service function, but should also meet the requirements of its users without requiring users to ask too many questions. Rather, the procurement should raise a useful and profitable objection to its internal users.

They should consistently pursue improving the performance ratio of the products and services they purchase, and in order to accomplish this, the purchasing department should be able to propose existing product designs, alternatives to the raw materials or components used, and alternative suppliers.

Summary. Hello, the purpose of procurement is to meet the needs of the purchaser.

Hello, the purpose of procurement is to meet the needs of the purchaser.

The main purpose of procurement is to maintain the normal production and operation activities of the enterprise and reduce the cost of the enterprise. The purchase of products is for the production needs, only the first product, the production and operation activities of the enterprise can be carried out. At the same time, procurement cost as an important part of the cost of the enterprise, which requires procurement personnel to shop around, in the first quality, the quality of the supply cycle to make a choice, the same quality, the supply cycle of the conditions will choose the lowest, in order to reduce the cost of the enterprise.

Procurement refers to an enterprise business activity that obtains products or services from the market as enterprise resources under certain conditions to ensure the normal development of enterprise production and business activities.

Procurement is not only a business flow process, but also a logistics process, its basic role is to transfer resources from the hands of the resource market to the hands of users.

In this process, it is necessary to realize the transfer of the material entity of resources from the hands of the first merchant to the hands of the user. The former is a business flow process, which mainly realizes the transfer of commodity ownership through commodity trading and equivalent exchange. The logistics process mainly realizes the complete combination of spatial and temporal location of commodities through transportation, storage, packaging, loading and unloading, circulation and processing, etc., which is indispensable.

It is reflected in the coordination of the production department, the inventory of the warehousing department, and the coordination of the financial department.