In relative terms, the sourcing process may be short or long, but it is a “one-time act” and the sourcing task will be largely completed once the right suppliers are selected and brought to the formal level. Of course the process could be long. Then purchasing went to perform routine order management. Of course, if the supplier selected by sourcing had performance problems, such as quality, delivery, price, etc., sourcing could re-engage in finding new suppliers. Of course, this distinction is somewhat theoretical. In many companies, sourcing and purchasing were done by the same team. For fully organized large companies, however, the overall trend is to separate sourcing from purchasing。
Differences in definitions
The procurement-related terms are buyer, purchasing, processing and sourcing. I have translated them into: purchase; procurement; access (or access to resources); and sourcing and cargo organizations. The order in which they appear also shows that while they all eventually complete the procurement business, the meaning and execution of the works are different:
1. Buyer is a simple purchase, completes a “buy” move and buys a certain kind of material or service, focuses on the billing and tracks orders
2. Purchasing means procurement, i. E. First to pick and then to buy
3. Access to resources is achieved with the meaning of integration and better access to resources
Four. Sourcing, which is generally used by manufacturing enterprises, requires strong scientific knowledge and a business sense that the best resources are to be found on a global scale and that the sources and resources found are to be combined for better use, with a focus on material and supplier development, which is then followed up by buyer. They have evolved and expanded with the evolving demands of procurement operations。
Functional differences and specific division of labour
Sourcing and purchasing have been translated into chinese, sourcing, purchasing and buyer both meant procurement, but in fact their functions were very different. Sourcing responds to the needs of its clients and finds, assesses, reviews, develops qualified suppliers, some of which are called procurement, meaning the discovery of procurement. The common counterpart for chinese is supplier development or development. It also includes the offer and negotiation of the new bom (bill of material). Focusing on the technical level is the search for and identification of new qualified suppliers or suppliers of new products. Focus on the analysis of the whole project. For example, you need to procure product a, and you need to perform a risk analysis of a, such as whether the project is suitable for the market in china, whether his technical parameters are met by most suppliers; whether the price of crude oil will increase in the near future, resulting in increased freight costs, or how many plastics you will be doing the project; and if there are conditions that you would have anticipated that would not be conducive to such a project, you have the right to stop the project, so as not to waste human and material resources, the work and position of sourcing is more demanding for potential risks, while he may also be responsible for the initial supplier search and screening。
Purchasing procures a suitable number of products at the right time, taking into account production and sales requirements, based on a list of qualified suppliers to be sourced. The corresponding chinese language is referred to as procurement. After analysing the risks of the project as a whole and deciding to start the project, purchaser is the project implementer, i. E. To negotiate price versus price, identify the specific supplier, confirm the delivery period by documentary confirmation, coordinate with the plant, mail samples, and purchaser is the actual implementer of the thing, and the supplier is to communicate in a timely manner with sourcing engineer. He was more authoritative, largely on the basis of his experience, as to which suppliers in the industry were capable and which were not. So, sourcing was relatively advanced, and he took the overall direction of a project; purchase was the implementer of a project in the right direction, mainly carrying out specific day-to-day procurement tasks. In contrast to sourcing, purchasing focuses more on order processing (po transaction), i. E. Request for quotations, order placements, tracking orders, reminders, receipt of goods, payment, etc. Now, because of the extensive use of it resources such as erp, many of the large companies are also planner, the planners are also procurement staff, who issue orders based on the corresponding information in the system. In some cases, because of the considerable division of labour, planner did not communicate with the supplier to issue the order or was buier working on the order。
In relative terms, the sourcing process may be short or long, but it is a “one-time act” and the sourcing task will be largely completed once the right suppliers are selected and brought to the formal level. Of course the process could be long. Then purchasing went to perform routine order management. Of course, if the supplier selected by sourcing had performance problems, such as quality, delivery, price, etc., sourcing could re-engage in finding new suppliers. Of course, this distinction is somewhat theoretical. In many companies, sourcing and purchasing were done by the same team. For fully organized large companies, however, the overall trend is to separate sourcing from purchasing。
As can be seen from the division of labour above, sourcing is relatively more strategic, sustainable and requires long-term planning, while purchasing is more focused on day-to-day work. It can be a single commercial purchase. In practice, sourcing interacts more with the ministry of products, engineering technicians, etc., while purchasing mainly supports the ministry of production and client services (e. G. Spare parts, accessories). Sourcing teams typically consist of sourcing manager plus procurement/supplier engineers, while purchasing consists of purchasing manager plus purchasing, catalysts, inspections, etc。
As a general trend at this stage, the gradual transition of the functions of the procurement department from purchasing to sourcing is the process of the role of procurement and its increasing position in the company. Procurement departments have also become more involved in strategic decision-making processes from the processing of original orders, such as determining whether the company manufactures or procures (make or buy), selecting the appropriate strategic partner supplier and, to a large extent, determining the final price of the product (as the procurement component is taking on a larger share). The merit of purchasing is, of course, of course very good to individuals if they want to move towards the sourcing side. Because the daily work is also a good exercise。
Three of the most central powers of the procurement process are: subplier selection (supplier sample certification), allocation (procurement allocation) and cost down (cost reduction). Given the importance of a procurement and the volume of work, we will see what parts of the three powers he can control. Sourcing will certainly be able to master suppler action, be in charge of the vendor sample, complete the sample certification and establish the code of a qualified supplier in the system。
Buyer is a buyer, agent or something, which is generally more proximate to purchasing, but sourcing in the garment or luxury industries is called buyer or merchandiser, but chinese is a buyer, not just a purchase。
Workin' duty
(1) vendor development (or participation in product development with professional competence)
(2) percentage distribution of approved purchase orders
(iii) review of leading new suppliers
(4) leading performance assessment and management of qualified suppliers
(5) competition, bargaining, contracting and administration
(6) establishment and maintenance of the manufacturer's quotation (including unit price, material lead time, minimum order, unit packing) and issuance and archiving of the issuance of the bill of lading (cost patterson)
(7) timely maintenance of systems in the event of changes in the unit price and payment terms of the procurement
(8) recognition of abnormal payments for participation in meetings
(9) assist in processing of materials (or materials lost) necessary for the plant
(10) the procurement developer of the head office assisted in opening the l/c operation
(11) e-supply pre-import operation, following vendor management
Buyer duty
(1) p/r exercise: production of material requisitions
(2) p/o exercise: production, issuance, filing of purchase orders
(3) confirmation, control and follow-up of materials submitted
(4) to participate in the assessment of new suppliers and in the assessment of the performance of qualified suppliers and to provide feedback to suppliers on a daily basis。
(5) material entry, retrieval
(6) mdr tracking and archiving。
(7) monthly reconciliation, invoice transmission and payment request
(8) deduction by the supplier of excess material
(9) implement and import e-supply and follow vendor management
Different locations in different industries
In most companies with incomplete systems, sourcing and purchasing are done by the same group. However, for fully organized large companies, either the separation of sourcing from purchasing into two separate departments or, together, the integrated management of the commodity manager. Usually these two functions will not be in the same department. If it is a large company or a company at a very high level. Together, it should be integrated management for commodity managers. But if not too big a company or a low level, and generally no commodity manager, sourcing would be placed in the technical department。
These positions may be defined differently in different companies. Some companies may be responsible for a procurement strategy for a class of products, such as the choice of direction by large suppliers, contracts, overall supplier performance, etc. Purchasing manager is responsible for day-to-day order-related tasks and manages buyer or procuring agent. There is also materials manager, whose responsibilities are broader word for word and responsible for all tasks related to materials, such as planning (how much to buy and when to buy), procurement (around orders), inventory management, warehousing, logistics, etc。
The company is small, commodity manager, purchasing manager, materials manager is probably alone. In some companies and industries, the boundaries between these positions are sometimes blurred. At a time when some companies, sourcing, were unable to master allocation (procurement allocation) and cost down (cost reduction), the position of sourcing was very awkward, the work was very difficult to carry out, and it became easy for them to go around asking for a look, and the supplier did not care because it cost the supplier, but then there was no order down, the price was sold, and sourcing could not be controlled, so it was critical to do the purchasing buyer and the real effect was greater than sourcing。
If all three powers were concentrated in the room of sourcing, buyer would be left empty and idle, and the good and bad of sourcing would greatly affect the performance of the procurement department. However, many companies do not concentrate these three powers in the department of procurement, but are controlled by the company's more senior leadership. At that point, the importance of the procurement department was significantly diminished, even to the lower end, and the selection of suppliers and negotiations on prices were conducted at the expense of the surface. As to whether the enterprise had purchased the material at the best price, the department could not answer at all. I have seen the procurement records of some large companies, which, although using state-of-the-art systems and management tools, are not well-priced and sometimes very poor, owing to the fact that in procurement and supply management, the form is greater than substance, the procurement department is not sufficiently empowered, is not adequately supported and is overstretched。
Each company may be different. What matters is whether you have the right to decide which supplier to use. Some companies are structured as follows:
1, regio- they're making a productNar stategy, decided to use the respect business
2 - they coordinate scm and regioNar purchasing manager's context
I don't know/al purchasing manager duties
