Purchasing Management: Developing Purchasing Project 3

PURCHASING MANAGEMENT
DEVELOPING PURCHASING
PROJECT

Contents
INTRODUCTION...............................................................................................................................3
State analysis with study of spend analysis and purchasing process with relationship to other
functions and organizations...............................................................................................................3
Main issues and problem in purchasing.............................................................................................3
Long term development plan with issues to be developed.................................................................4
Detailed action plan for selected development issues........................................................................5
CONCLUSION....................................................................................................................................6

INTRODUCTION
Purchasing management is the management of the purchasing process and related
aspects in an organization. Purchasing management includes the following expertise such as
Supplier Management. Cost and Cost Reduction Management. This report focuses on the
process undertaken by Tesco to purchase with slight focus on spend analysis with
relationship of other organizations. With that it also focuses on issues and problem in
purchasing with a focus on development plan over these issues. Apart from that action plan
has also been discusses so that decisions taken can be implemented in order to improve and
sustain the business of company for long period of time.
State analysis with study of spend analysis and purchasing process with relationship to other
functions and organizations
Purchasing done by Tesco is done on the basis of factors assessed such as getting
quality and economical products from the suppliers, believed to be the method that is
economical and meet the needs of people. This is done by maintaining relations with
suppliers at good terms. With the help of studying there spend analysis they will be able to
figure out where the financial resources of company are getting used. This will help them to
categorize and gather the data they can assess the costs involved which are not necessary so
that it can be removed and used for further expansion. Process of purchasing enabled by
Tesco involves many steps such as they assess the need first then submit the purchase order
after that accounting team review it that if or not it is under their budget. After that they send
the proposal and quotation to vendors and suppliers so that the bids made by suppliers can be
evaluated and compared. The most reasonable supplier will be selected by Tesco and they
will pass on the contract to them. All the terms and conditions are read and agreed upon and
when after everything is final they will be able to sign it that will show that deal is on with
mutual consent of both parties. Even after that company has to review the products shipped
by the suppliers so that all the goods are verified and notice can be sent for successful
delivery. Sometimes companies such as Tesco faces shortage of products and in order to keep
the stock up sometimes they borrow it from other companies which all depends on the
relations maintained with them (Dobos and Vörösmarty, 2019).
Main issues and problem in purchasing
Risk Mitigation-