The purchasing management process - Primary tasks and responsibilities
3 important questions on The purchasing management process - Primary tasks and responsibilities
Why are codes of conduct so important?
Of increasing importance are codes of conduct on how to deal with supplier relationships, on what is allowed when accepting gifts and other fringe benefits from suppliers. As collaboration with suppliers become more intensive, the need for this kind of formal procedures grows. It is part of the purchasing manager's responsability to communicate how the company wants to act in the relationship with its suppliers.
It is important to decide on who in the organization has purchasing authority. Which two authories can be distinguished?
1. budget authority: signs of allocation of the budget. The purchasing manager' s signature indicates that the purchase was made in accordance with the company's overall purchasing rules and guidelines.
2. procurement authority: Only when a manager has purchasing authority is he or she entitled to engage in a contractual relationship between the organization and a third party.
2. procurement authority: Only when a manager has purchasing authority is he or she entitled to engage in a contractual relationship between the organization and a third party.
Why is it important to have clear rules and guidelines to manage the internal process of purchasing?
They are necessary to orchestrate the many and often complex relationships with suppliers. Such rules and guidelines are needed because the financial interests in relationship with suppliers can be very large. The purchasing policy and the way in which it is executed clearly affect the reputation of the company to its external world. Rules and guidelines are needed, related to the acceptance of business gifts, invitations for study trips, seminars, conferences, etc.
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