Purchasing functions are at the heart of inbound aspects of any logistics operation, which specialist recruitment agency BiS Henderson understands perfectly. In many retail operations, buying offices may be managed at one remove, but the operational aspects will be looked after by logistics specialists as soon as the goods concerned are transferred to the buying team.
Depending on the nature of the business, procurement may need to be direct for very specific items or bought on the spot market for commodities. For example, a car manufacturer will need to order aluminium castings in advance to a very detailed specification from specialist suppliers, while an aluminium smelting plant can source bauxite from around the world, using a mix of forward buying and possibly spot purchases to cover any unplanned surges in output.
The degree to which a purchase is specific to the buyer will have an effect on the price: this can be seen at work in retail price points in own label ranges as the BiS Henderson team would agree. Very specific product specifications accompany the high degree of branding that is found with national brands or premium own label lines: part of the price ticket reflects a long term commitment between the trading partners for an extended production cycle.
On the other hand, to continue the retail own label analogy, industry standard specifications will be used for fighting brands and spot purchases for so-called value or cheaply-priced standard lines. The greater availability of standardised products will be reflected in the asking price.
One role of the purchasing department will be to identify the level of customisation required in the goods to be delivered. Pricing will also need to take into account the point at which the consignment is transferred: factory gate; dockside or delivered to the door.
This sort of detail is fundamental to the successful development of a quotation that will reflect the operational reality of the business concerned. Further processing cannot take place until physical goods or products arrive to be sold, whether this be manufacturing or merchandising. Attention to detail makes or breaks any purchasing decision: this is why it demands constant contact between all those affected, from supplier to end-user.
BiS Henderson is a specialist recruitment consultancy for the Supply Chain & Logistics sectors – The Recruitment of Supply Chain Professionals by Supply Chain professionals. For more information please leave a comment below or browse our website
