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Procurement Decision

The management process of selecting feasible schemes, implementing them and implementing procurement schemes
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The purchase decision refers to the purchase decision based on the business operation target Put forward various feasible procurement schemes, evaluate and compare the schemes principle The management process of selecting feasible schemes, implementing them and implementing procurement schemes. Procurement decision is an important part of enterprise operation and management. The key problem is how to formulate the best procurement scheme, determine the reasonable quantity of commodity procurement, and create the maximum economic benefits for enterprises.
Chinese name
Procurement Decision
Process
According to the requirements of business objectives
Results
Propose various feasible purchase schemes
Purpose
Evaluation and comparison of schemes
Benefits
Create maximum economic benefits for enterprises
Features
Predictability, etc

Enterprise characteristics

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Purchasing decision-making is an important part of enterprise decision-making, which has the following characteristics:
(1) Predictability. It refers to the speculation of future procurement, which should be based on the market forecast.
(2) Purpose. The purpose of any procurement decision is to achieve certain procurement goals, such as reducing procurement costs.
(3) Feasibility. It means that the selected decision-making scheme should be practical, otherwise it will lose the meaning of decision-making.
(4) Evaluation. Evaluation refers to the selection of satisfactory schemes through analysis and evaluation of various feasible schemes.

effect

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Enterprises are faced with a large number of decision-making problems in production and operation activities. Decision making is one of the tasks that managers spend most time and energy on. Scientific decision-making can grasp the correct direction of business, seek advantages and avoid disadvantages, develop strengths and avoid weaknesses, and play a positive role in improving the survival and competitiveness of enterprises. In addition to the general functions of avoiding risks and enhancing vitality, procurement decisions can also play the following important roles.
(1) Optimize procurement activities
Procurement activities have an important impact on production and operation projects, product costs and quality. In order to ensure the realization of various objectives of the enterprise, it is necessary to promote the optimization of procurement activities, optimize procurement methods, procurement channels and procurement processes, and improve the optimal allocation of procurement resources.
(2) Realize just in time procurement
In order to meet the needs of immediate production, just in time procurement should be implemented, and reasonable procurement decisions make just in time procurement possible.
(3) Improve economic benefits
In the case of certain product specifications, quality, service, etc., accurate purchase can reduce purchase price, inventory, and expenses, so that enterprises can obtain greater profits and improve their competitiveness. Procurement activities are affected by many factors, and there are specific relationships between them. If any factor is not handled properly, it may affect the improvement of economic benefits.

program

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Procurement decision-making is a complex work related to the quality of procurement work and must be carried out according to certain procedures. The basic procedures are as follows.
(1) Determine procurement objectives
Determine the procurement objectives of the enterprise according to the overall business objectives of the enterprise. The overall goal of enterprise procurement is to achieve timely and accurate procurement, meet business needs, reduce procurement costs and improve economic efficiency. According to the overall purchase goal, specific purchase goals can be formulated, such as order quantity goal, order time goal, supplier goal, price goal, delivery time goal, etc.
(2) Collect information about
Information is the basis of purchase decision, and the reliability of information determines the correctness of purchase decision. Information can be divided into external information and internal information according to different sources.
*(1) The external information of the enterprise includes the following contents:
O Macro laws and economic policies.
O Source information.
O Scientific and technological information.
O Transportation information.
O Peer situations with the same needs. Where the peers purchase from, how much is the purchase price; Whether there are more economical materials; Whether joint purchase can reduce purchase price, etc.
*(2) The internal information of the enterprise includes the following contents:
O Material demand. Make a demand plan according to the sales plan and production plan, and then make a purchase plan based on the inventory situation.
O Inventory. For example, how about the enterprise's inventory capacity, how much is the inventory cost, and the inventory status of existing goods.
O Financial situation. For example, whether there is sufficient procurement funds, the turnover speed of procurement funds and the collection status.
O The purchasing team of the enterprise. Including the professionalism, comprehensive quality and cooperation spirit of the procurement personnel.
(3) Draw up multiple feasible plans to achieve the goal
(4) Choose a satisfactory solution
According to the above schemes, the satisfactory scheme shall be selected through comprehensive analysis. The problem of scheme selection is a process of analyzing and evaluating various feasible schemes. The specific evaluation criteria vary from enterprise to enterprise and from external environment to external environment.
In practice, even if the market situation is certain, different types of enterprises will adopt different evaluation criteria according to their own conditions. The satisfactory scheme is not necessarily the most profitable scheme, but the most favorable and feasible scheme for the enterprise.
There are many contents of purchase decisions, including the selection of suppliers, purchase channels, varieties, specifications and quality of purchased goods. There are different decision-making methods for different decision-making contents, such as purchase timing, purchase batch, purchase price, etc. There are many methods of purchase decision, including quantitative decision method and qualitative decision method. It mainly includes procurement personnel estimation method, expected value decision method, manager opinion method Mathematical model method and Direct observation
(1) Procurement personnel estimation method. This method is to gather some procurement personnel with rich procurement experience to ask for their opinions on a certain decision-making problem, and then combine their opinions to form a decision-making result.
(2) Expected value decision method. This method is based on historical data to make decisions.
(3) Opinions of managers. This method solicits the opinions of department managers before making decisions. If an enterprise wants to select a suitable supplier, it can adopt the method of manager's opinion.
*The specific steps are:
O Solicit the opinions of the managers of procurement, production, technology, sales, finance and other departments, and each manager will give different scores according to his own standards.
O Summarize and eliminate some suppliers according to their scores.
O Ask each manager to score the remaining suppliers.
O After many times of repetition, until the right supplier is selected.
This method needs to be repeated many times, which is time-consuming and has poor feasibility.
(4) Mathematical model method In order to minimize the total cost of purchase and storage, enterprises must use the economic lot size model to calculate the optimal purchase lot size. It is worth noting that the use conditions must be paid attention to when using mathematical models.
(5) Direct observation When making decisions on simple problems, the decision-makers of the procurement department should eliminate the schemes that do not meet the standards according to certain standards or key procurement standards, and select the satisfactory schemes according to the good and bad order and feasibility of the schemes that meet the standards.
In a word, according to the characteristics of decision-making problems, selecting one method or combining several methods can improve the correctness of procurement decisions and reduce procurement risks.
(5) Implementation and feedback
With procurement objectives and satisfactory procurement plans, specific implementation rules shall be formulated to implement the procurement plans. At the same time, attention should also be paid to collecting and sorting out new situations and problems in the implementation of the plan, and necessary adjustments should be made to ensure the realization of the procurement objectives.
Finally, the implementation of the procurement scheme is checked and analyzed. In the process of implementation and feedback, the actual implementation should be compared with the original decision objectives.