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purchasing company services
Purchasing companies, generally in a narrow sense, are companies engaged in product procurement. They exist with their own business methods, small profits but quick turnover, and are responsible for providing solutions to provide customers with purchasing service. In this era when the Internet is unblocked, domestic purchasing companies now generally use the Internet to conduct their own company operations, which is generally reflected in many purchasing websites.
1. Reasons for the emergence of purchasing companies
Whether there is a sufficient scale of small-scale demand that may need to be concentrated by a third party;
Whether existing brand operators need to outsource procurement through division of labor;
If it is a design company for professional procurement, it may be a better division of labor. In this case, these purchasing companies may be a new development on the basis of existing manufacturers;
If the purchase is made by a third party, one must also pay attention to the transaction cost issue brought about by this;
2. Procurement steps
The purchasing company's services include: joint procurement, procurement outsourcing, procurement consulting, procurement agency, bid making, bidding, inquiry and quotation, contract negotiation, supplier selection, supplier review, logistics management and other procurement-related activities.
The specific activities of the purchasing company include: determining which products or services are the best, selecting the right suppliers, negotiating for the best price, and signing contracts to ensure that the company receives the right amount of products or services at the right time. In order to successfully implement the above-mentioned procurement activities, purchasing managers, buyers, and purchasing agents must carefully study sales records and current inventory levels, determine domestic and foreign suppliers, and consider changes in suppliers and demanders at the same time.
The procurement sub-processes can be divided into the following categories:
Purchasing: Strategic Purchasing refers to the continuous and long-term purchase of products and services by the purchasing company. These products and services may be used in the company's supply chain (direct products), or they may be used by business personnel (indirect products).
Expenditure management: It is a method of overall planning and management of all the expenditure budgets of the enterprise-analyzing the enterprise's expenditure pattern to ensure the optimal allocation of resources among multiple expenditure categories. The activities of expenditure management mainly include: expenditure monitoring and analysis, expenditure planning and payment, and purchaser management.
3. Advantages of purchasing company
China has become a global manufacturing center, bringing endless opportunities for the development of SMEs, but at the same time SMEs have been troubled by procurement costs. According to relevant statistics, the procurement costs of SMEs account for about 64% of the entire product cost. ~78%, some SMEs are even higher. Relevant data shows that for every 1% of cost savings, profits can increase by 8% to 15%.
Small and medium-sized enterprises can reduce procurement costs and enhance market competitiveness by cooperating with professional procurement notifications.
Usually the purchasing company can bring the following advantages and benefits to the company:
Give full play to the advantages of scale procurement.
Centralized procurement can integrate the company’s decentralized procurement resources, give full play to the advantages of large-scale procurement, and obtain more favorable prices. It can also avoid repeated procurement of similar products, reduce procurement frequency and supply-demand docking costs, enhance the buyer’s right to speak in the market, reduce procurement costs, and improve procurement efficiency. Avoid waste of human, material and financial resources caused by decentralized procurement.
Optimize supply chain management.
The centralized procurement of purchasing companies can attract more excellent suppliers, provide more valuable support for enterprise resource supply, product development, after-sales service, etc., help enterprises form strategic partnerships with excellent suppliers, and optimize and coordinate the upstream and downstream supply chains of enterprises Management is conducive to the integration and utilization of inventory resources, reducing logistics and warehousing costs.
Improve the quality of products and services.
The centralized procurement of purchasing companies is conducive to optimizing the quality of corporate procurement technology and obtaining high-quality products and services from competitive excellent brands and strong suppliers.
Standardize purchasing behavior. Through the moderate concentration of procurement requirements, procurement time, procurement personnel, procurement locations, and suppliers, decentralized decision-making is transformed into centralized and open decision-making, increasing the standardization and transparency of procurement activities, weakening the unreasonable individual propositions of various demand entities, and reducing procurement management personnel The links and opportunities for contacting suppliers are conducive to establishing a professional and standardized mechanism for purchasing companies, improving a unified, open, fair and just bidding and purchasing supervision mechanism, and preventing corruption risks.
Professional matters are left to professional people. Purchasing service are not the core business of SMEs, but they will involve the procurement interests of SMEs. At present, most domestic purchasing companies are only in their infancy, and many purchasing companies are constantly exploring.With economic development, the services of detailed purchasing companies will become more professional.
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