The procurement, storage, and monitoring of goods sold in a retail store, machinery, supplies, or other raw goods are all part of purchasing and supply management. The purchasing and supply manager is in charge of this section of the job, as well as the other employees who work there. Purchasing and supply management is one of the most important job descriptions for most businesses, particularly retailers, in terms of monitoring buyer behavior and ensuring that top-selling items are well-stocked.
Purchasing and supply management may entail negotiating with manufacturers or wholesalers when purchasing goods or materials, as well as working closely with cost analysts and marketing professionals to determine which products to buy and which are not selling well enough to justify the costs. This procedure ensures that the company keeps better-selling items in stock while discarding items that are collecting dust on store shelves.
Inventory management is also an important aspect of purchasing and supply management. Inventory is taken at regular intervals in each warehouse or store, and the numbers are compared to how many of each unit were originally purchased. This allows managers and owners to determine which items to purchase more of and which to reduce.
Purchasing and supply management personnel must constantly research and learn about consumer behavior, as well as keep up with new and emerging products on the market. A company’s survival depends on its ability to provide the goods and services that customers desire.
Purchasing and supply management teams are frequently made up of a number of key players. Pricing analysts, market researchers, and marketing personnel, as well as managers from each of these departments, store owners, and supervisors, may be part of this group. It is critical for each member of the team to compare notes and discuss purchasing and marketing strategies. In the case of retailers, they must also compare notes with the purchasing teams of manufacturers or wholesalers to determine which items are being manufactured and sold, as well as to whom.
The purchasing and supply management teams must also reach agreements with their product suppliers regarding the possibility of returning merchandise if an item fails to sell. Many publishing houses, for example, allow book sellers to return unsold copies within six months. This serves as some form of insurance for a company’s investment. Before any inventory is paid for, the purchasing and supply department must negotiate these terms, as well as keep accurate records and inventory to comply with all agreement terms and conditions.
Because purchasing and supply management encompasses a wide range of job descriptions and responsibilities, getting a job in this field may necessitate one of several degrees, certificates, or experiences, depending on which section one wishes to pursue.