Roles of Information Technology in Purchasing

Chapter 3 Purchasing and e-Procurement 3.1 The Role of Purchasing 3.1.1 Introduction to get The component of purchasing is to obtain raw material, components, parts, as well as information that are needed for the production of goods or providing services. The purchasing process embarrasss many aspects, such as request for recognition (RFQ), supplier market analysis, supplier selection, contract negotiations, and buy im days implementation. The purchase function plays a liaison percentage surrounded by various departments within an organization and numerous suppliers outside the company. The purchase goal is to develop and implement a purchasing protrude that supports the companys daily operation and the general strategic plan. It is estimated that the purchased material salute accounts for 60% of the total product follow in the manufacture sector. In the retail and wholesale environments, the cost of a purchased commodity can be as higher(prenominal) as 90%. According to the US Census actors assistant 2002 manufacturing research report, the cost of purchased raw material, parts and components exceeds the amount of the value-added character during the manufacturing process. Therefore, effectively managing purchasing and sourcing can enhance a homes competitive advantages. For a long time, purchasing was regarded as a supporting function in an organization.

Today, in the age of supply chain management, the purchasing function plays an important role in implementing a 57 SUPPLY CHAIN MANAGEMENT: CONCEPTS, TECHNIQUES AND PRACTICES - Enhancing Value through Collaboration © World Scientific Publishing Co. Pte. Ltd. http://www.worldscibooks.com/ strain/6273.html 58 Supply Chain Management: Concepts, Techniques, and Practices companys overall business strategy. Important aspects of supply chain management include outsourcing, searching for better quality products, and emphasizing lean and productive production. The introduction of the Internet technology, e-commerce, on-line auction, and vendor-managed... If you want to get a full essay, order it on our website: Orderessay

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