Purchasing & Supply Chain Management Share A Close RelationshipIn every manufacturing business there is a chain called the supply chain. The supply chain functions to take raw materials through different stages to be able to be ultimately sold to the consumer. Purchasing & supply chain management have a very special relationship in that without the purchasing component, no raw materials can be bought to manufacture the goods. So, in essence, nothing can be started without a purchasing department. The purchasing department takes on many tasks and is an intricate part of supply chain management. One of the tasks that purchasing & supply chain management share is the purchase of the raw materials needed to manufacture the finished product that will ultimately be sold to the consumer. Generally, the production department is responsible for filling out a request or order for the raw materials necessary to manufacture or produce the goods that are needed. The production department then presents their order to the purchasing department. In turn, the purchasing department sorts out which materials will need to be ordered from what supplier. The purchasing department then submits the appropriate orders to the appropriate vendors. Purchasing & supply chain management share a close relationship in that the purchasing department must be diligent in submitting orders for raw materials to the vendors who will supply the products or materials that are needed at a fair and reasonable price. This is part of supply chain management in that it will help the company in making their profits. The goal is to make as big of a profit as possible without sacrificing quality. There are many strategies that purchasing & supply chain management can implement when trying to expand profits. One strategy is to fully analyze each area of the supply chain to see where improvements could possibly be made. If the people in charge of purchasing & supply chain management find it difficult to identify areas that are needing improvement, then perhaps consulting should be considered. Consultants are available to help companies improve their purchasing & supply chain management strategies. Sometimes it helps to have an outsider cast his or her eye on things and offer his or her advice. |