Internal Factors: Procurement Batch And Purchase Volume

Although the cost of purchasing materials accounts for a large part of the total cost of procurement, suppliers' delivery time, location of delivery and payment period also affect the size of inventory and the cost of procurement.

If any of the above conditions can not meet the normal production and operation of enterprises, the lower price will not be able to meet the perfect completion of the enterprise.

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Therefore, suppliers' delivery time, location of delivery and payment period are also important factors affecting purchasing cost.

The implementation of procurement is not only the responsibility of the purchasing department, but also involves planning, design, production, sales and quality inspection departments.

Therefore, this requires good communication and collaboration among departments to perfect this business perfectly.

If the planning department does not predict the material requirement plan, the production plan will change accordingly. Once the change is frequent, it will lead to the increase of emergency procurement and the high cost of procurement. If the design department fails to carry out the value engineering analysis, and only consider the aesthetic and uniqueness of the design, it will lead to large differences in the material category, and it will not be able to form the procurement volume. The price advantage of the supplier will not be formed.

Price cost analysis and negotiation ability

An analysis of the cost and price structure of a supplier's product is the basis for determining purchase prices and obtaining the initiative to negotiate with suppliers.

Before implementing the procurement negotiation, the purchasing department must investigate and analyze the current situation of the market in detail.

Only in this way can we choose different and effective bargaining methods for different suppliers so as to achieve the goal of reducing purchase price.