Purchasing plays a key role in assuring the cost efficient, timely and uninterrupted supply of raw materials and services to support the business. Does this sound familiar?
- Manufacturing is certain it ordered the material, but can’t find the “hand written” request.
- Sales just placed a very large order for a standard product at the usual price of $140/unit. Last month, the vendor’s raw material price doubled and the increase was not communicated to Sales. The business must now take a significant loss or lose the customer. This is not the first time this has happened.
- The business is routinely running out of raw materials and no one seems to know why?
- Supplier A went out of business unannounced. The business is now scrambling to find an alternate source!
- A disconnect between suppliers, the business, and the customers is resulting in each “partner” working to maximize its own profits at the others’ expense.