Purchase Management Services

Purchase management services in UAE, ODS: We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices.
We look at the question “what is HRM?” by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the “art and science” of HRM is indeed complex. We have chosen the term “art and science” as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

Purchase Management services in UAE

The purchased items should be of specified quality in desired quantity available at the prescribed time at a competitive price. In the words of Alford and Beatty, ”Purchasing is the procuring of materials, supplies, machines, tools and services required for equipment, maintenance, and operation of a manufacturing plant”. purchasing is an operation of market exploration to procure goods and services of desired quality, quantity at lowest price and at the desired time. Supplier who can provide standard items at the competitive price are selected.

Purchasing in an enterprise has now become a specialised function. It was experienced that by giving the purchase responsibility to a specialist, the firm can obtain greater economies in purchasing. Moreover purchasing involves more than 50% of capital expenditure budgeted by the firm.

Importance of Purchasing Management

  • Purchasing function provides materials to the factory without which wheels of machines cannot move.
  • A one percent saving in materials cost is equivalent to a 10 percent increase in turnover. Efficient buying can achieve this.
  • Purchasing manager is the custodian of his firm’s purse, as he spends more than 50 per cent of his company’s earnings on purchases.
  • Increasing proportion of one’s requirements are now bought instead of being made as was the practice in the earlier days. Buying, therefore, assumes significance.
  • Purchasing can contribute to import substitution and save foreign exchange.
  • Purchasing is the main factor in timely execution of industrial projects.
  • Materials management organisations that exist now have evolved out or purchasing departments.
  • Other factors like:
  • ☛ Post-war shortages

    ☛ Cyclical swings of surpluses and shortages and the fast rising materials costs,

    ☛ Heavy competition, and

    ☛ Growing worldwide markets have contributed to the importance of purchasing.

Objectives of Purchasing Management:

The purchasing objective is sometimes understood as buying materials of the right quality, in the right quantity, at the right time, at the right price, and from the right source. This is a broad generalization, indicating the scope of purchasing function, which involves policy decisions and analysis of various alternative possibilities prior to their act of purchase.

The specific objectives of purchasing Management:

  • To pay reasonably low prices for the best values obtainable, negotiating and executing all company commitments.
  • To keep inventories as low as is consistent with maintaining production.
  • To develop satisfactory sources of supply and maintain good relations with them.
  • To secure good vendor performance including prompt deliveries and acceptable quality.
  • To locate new materials or products as required.
  • To develop good procedures, together with adequate controls and purchasing policy.
  • To implement such programmes as value analysis, cost analysis, and make-or-buy to reduce cost of purchases.
  • To secure high caliber personnel and allow each to develop to his maximum ability.
  • To maintain as economical a department as is possible, commensurate with good performance.
  • To keep top management informed of material development which could affect company profit or performance.
  • To achieve a high degree of co-operation and co-ordination with other departments in the organisation.