WHY PURCHASING MANAGEMENT TODAY MORE COMPLICATED COMPARED THE PAST ?

Bismillahirrahmanirahim ....


Assalamulaikum wbt ...

okay,today we are going to post the second post about the " Purchasing management Today more complicated compared the past? "

Do you know about the challenges in purchasing manager today?
If you don't know and don't ever think about it. just look here and read this.


Are you ready get a new information about it ? let go scroll down ....

Now,we're going to discuss SEVEN(7) purchasing challenges :

 1.  Increase in MATERIAL COST
  2.  Increase in TRANSPORTATION COST
  3.  Increase changing ECONOMY and POLITICAL environment
  4.  GLOBALIZATION
  5.  New INVENTORY concept
  6.  Safety of ENVIRONMENTAL issue
  7.  TECHNOLOGY requirement
 


First of all,it about the RAW MATERIALS. You know want is a raw materials ? raw material is  
  the basic material from which goods, finish goodsor intermediate materials are manufactured or made.
why the purchasing chalenges make effect to the raw material ? As you know the resources in our earth cannot be renew.That why,it effect to cost of the raw materials.For example of raw material is coal,oil,rubber



Second,the cost of TRANPORTATION. As you know transportation effect in purchasing challenges based on distance, type of transportation, load and so on.As we know the increase of petroleum's price,highway tol fees, road taxs make effect cost of transportation. So,transportation is very important in purchase the finish goods.



Third point in challenges of purchasing is economy and political environment. In economy environment, different currency is  big deal as we need to change, development of economy in another countries. In political issues is documentation, unstable political countries such as Egypt.


Globalization refer to processes of international integration arising from interchanges or world views, product, idea and other aspects of culture. Now many company want to expand their business to international to income more benefit in their company. So, Globalization is the factor of challenges to purchasing manager.



Furthermore,people like to have the product quickly.So,Just-In-Time(J.I.T) is new trend in new inventory concept.To be competitive in market.they must reduce the inventory.that why,company must to fulfill the customers' need. Some of the firms need to apply inventory as they must satisfy the customer requirement.



moreover,environmental issue is part of challenges,that purchasing manager should consider with it. This concern makes the purchasing management work hard to apply this concept to make sure they are creating a good relationship with the people and more Eco-friendly.


Last but not least,as the purchasing manager another effector their should take in is technology requirement. They must always make sure the technology should be chaseg time by time. It is the big part because customer always demand the latest technology requirement.



Well their are lot of challenges in purchasing that should be focus in order to fulfill customer requirement.If This challenge don't be consider. the failer be occur.


Please drop your comment if any idea.