Download e-book for iPad: Purchasing and Supply Management by P. J. H. Baily B.Sc. (Econ.), A.C.I.S., M.Inst.P.S. (auth.)

By P. J. H. Baily B.Sc. (Econ.), A.C.I.S., M.Inst.P.S. (auth.)

ISBN-10: 0412115700

ISBN-13: 9780412115707

ISBN-10: 1489969020

ISBN-13: 9781489969026

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Sample text

Its main advantage however is in the better communication and motivation which in turn makes the plans work better. Branch purchasing staff should be consulted before plans are decided centrally, and so far as possible they should be actively involved in making the plans. Multinational organizations Although some small firms operate in more than one country, and some large firms operate in one country only (for instance National Coal Board and British Rail), the typical medium and large firm of the 70's is operating internationally or multinationally.

The smaller firm The number of small firms is very large, and their role in the economy is important. In manufacturing, firms employing up to 200 people could be called small, and they constituted 94% of UK manufacturing firms and provided 20% of total employment. In non-manufacturing industries, a small construction firm would have not more than 25 employees, a small road transport firm would have 5 vehicles or less, a small retailer would be a retailer with a sales turnover not exceeding £50,000 a year, and a small wholesaler would have a sales turnover of £200,000 a year or less.

One danger with group contracting is that branch buyers may lose heart if they are not left enough freedom of action. Individual buyers should be able to feel that their own contribution to the prosperity of the group can be identified and rewarded. Some groups allow branch buyers to opt out of group contracts wherever they can give sound reasons for so doing; such as the need for quick delivery in emergency, or even finding a better buy - which ought to lead to a better group contract. Most groups allow branch buyers full discretion for purchases below certain figures, unless there is a group contract for the item.

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Purchasing and Supply Management by P. J. H. Baily B.Sc. (Econ.), A.C.I.S., M.Inst.P.S. (auth.)


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