Purchasing Management
Purchasing strategies are usually employed by companies in order to come up with cost effective procurement choices.
The following are purchasing strategies used by companies:
Supplier optimization
Total Quality Methods (TQM)
Risk Management
Green Purchasing
Supplier Optimization
Companies choose prime mix of sellers who can be able to provide the best terms and prices. This process therefore discards suppliers who are less able to provide excellent services at the prices and the terms. Due to its approach, this is therefore the most popular purchasing strategy as compared to other purchasing strategies (Friedman et al, 2012).
TQM
The strategy requires sellers to provide a consistent high quality services which is free from any errors. Suppliers are therefore supposed to ensure that they ensure buying best practices through employing different tools (Friedman et al, 2012).
Risk Management
Different companies obtain suppliers from different parts of the world, and this consequently requires them to be concerned with risk management (Friedman et al, 2012). This is basically so, simply because the suppliers avoid making any losses due to trading with certain countries. These companies therefore consider the risks that they are likely to face while receiving supplies from certain countries.
Purchasing management strategies are very different from supply management and supply chain management, simply because purchasing management is mainly concerned with the movements of goods from the company to the supplier. In purchasing management, the supplier is supposed to come up with ways through he or she can be able to influence the buyers to stick to a certain product, through providing quality services to the buyers (Friedman et al, 2012). On the other hand, supply management involves controlling the costs of products, and allocating resources to the required buyers. When it comes to supply chain management, it is basically the oversight of products, information and services as they move from the manufacturer to the supplier.
Reference
Friedman, D. M., DeCorla-Souza, K., Science Applications International Corporation., Transit Cooperative Research Program., United States., Transit Development Corporation., & National Research Council (U.S.). (2012). Guidebook for evaluating fuel purchasing strategies for public transit agencies. Washington, D.C: Transportation Research Board.
