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4 main issues Procurement Manager faces

4 main issues Procurement Manager faces

We identified 4 issues that supply chain managers face most often.

Inventory Management

Stock control is the control over the state of stocks at the warehouse. It is important to ensure the timely delivery of the necessary products or materials to the manufacture or office.

The main problem faced by supply managers in inventory management is inaccurate demand forecasting. It is crucial for producing the required quantity of goods, and if the calculations are unreal - you are having problems. As a result, the goods do not suffice for a reporting period and an additional budget is needed for an additional supply or there are too many goods in the warehouse, its expiration date is not unlimited and the place in the warehouse too. Redistributing of goods between locations, you can save money.

Supplier Management

The purchasing manager is responsible for work with suppliers. To avoid problems, the procurement manager must constantly maintain a dialogue with suppliers. Cooperating with the supplier, he controls the quality of terms fulfillment.

Sometimes problematic situations with suppliers emerge. For example, the low-quality goods are delivered and it is necessary to do a return/substitute. In such situations, aggressive actions from procurement manager can greatly damage the relations with the supplier. The purchasing manager should notify the supplier delicately and ask him to substitute the goods. If such situations occur with this supplier often, alternative solutions should be found.

Safety and quality ensuring

Working with suppliers around the world, concerns about the quality of the purchased goods (due to non-compliance with regulatory requirements) appear. It makes a risk of return.

The Procurement Manager is responsible for providing the company with materials that meet safety and quality standards. If this aspect is ignored, the company may suffer damage.

The quality of the goods depends more on the supplier, but within the company, the purchasing manager is responsible for it. This risk especially increases when the procurement manager starts working with a new supplier.

Risk reduction

The purchasing manager comes out as the warrantor of successful cooperation between the company and suppliers.

The purchasing manager should always have a reserve plan to ensure continuous supplies of necessary materials. The purchasing manager analyzes and evaluates risks, provides the company with the needed goods and services, as well as controls the procurement process.

 

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