Purcharsing agent

Establish strategic business needs.

Create infrastructure to support development.

Identify alliance or partnership opportunities.

Identify alliance or partnership candidates.

Initiate executive level contact with candidates

Evaluate alliance or partnership candidates

Negotiate with candidates

….. If agreement is reached

Nurture and grow the relationship.

Suppliers selection criteria.

the right goods and services;

in the right quantities;

to the right quality;

at the right time;

to the right destination;

at the right price;

from the right supplier.

Internal organizational tasks: Collaborate with the internal network

Operating purchasing decisions

Define purchasing strategies

Organize the boundary interaction

External collaboration tasks:

Collaborate with the external network

Manage supplier relations

Coordinate joint activities

Purchasing activities for which it can have full responsibility: selecting, assessing and rating suppliers;

issuing enquiries,

receiving and evaluating tenders;

obtaining prices;

awarding purchase orders;

following up on delivery promises;

adjusting and settling complaints and claims;

developing and maintaining supplier relationships.

Activities for which responsibility can be shared with other functions: obtaining technical information and advice;

obtaining material and equipment costs for estimating purposes;

contributing to tenders for the sale of goods and or services;

developing and establishing specifications;

determination as to whether to make or buy;

formulating and originating contracts for administration by others;

responding to questions from suppliers;

evaluating and settling claims;

scheduling and timing of orders; i

issuing status reports;

considerations of quantities and number of deliveries;

specifying delivery method and routing;

inspection and expediting;

transportation, shipping and traffic; customs clearance;

inventory and warehousing control;

sale of scrap, salvage and surplus;

forward buying and hedging; market research;

invoice approval;

international purchasing

The basic purchasing processes do not change to any significant extent when purchasing internationally.

However, a number of aspects will take on greater importance: cultural and language issues;

conformance to technical specifications;

national standards and codes of practice;

legal and tax differences;


logistical arrangements;

shipping terms – customs clearance and duties;

payment in foreign currencies;

letters of credit;

bonds and guarantees;

the use of agents both for purchasing and freight forwarding;

the cost of transport, expediting and inspection.