One of the interesting sights of the traditional market is seeing the process of bargaining between merchants and buyers on items. In Indonesia are generally carried out by women (both merchants and buyers). Suppliers with all the opinions that have been trying to maintain prices offered and a while on the other side of the buyer in every way also expect prices to fall according to expectations even often compared with other places first. The most interesting is that when bargaining is no longer using the correct logic but rather represent the personal desire of both parties, which often differ only by a nominal price that is not significant but rather a waste of time which was worth far more than the price difference are debated. In the model of purchasing or procurement of more modern though, where one way is to use telephone facilities to contact the supplier, not a few people who spent a long time just to make sure or ask for an item and of course this is waste of their funds via telephone conversations which are not less and the time lost thereby also. Therefore here are some things to consider purchasing/procuring material/goods for the process is not even perform inefficiency (time, money and opportunity). This information is presented in the author from everyday experience involved in a logistics team that handles procurement or purchase of goods, actually many articles or references about the management of the purchase but the author tries to explore the practical side of day-to-day about a purchase or procurement process.
Knowledge of Goods/Material
Understanding or knowledge of a buyer about a goods/material to be purchased is the main requirement that must be owned by a person in buying or procuring something. This knowledge includes specifications, dimensions, use of goods and also where the goods can be obtained, with these knowledge will be supported and even could be pushed purchasing cost, because the buyer can express its wishes on an item to the supplier with a very clear, no need to repeatedly convey nor takes too long so the cost of telephone conversations become swollen. Very good if a person who served in the purchasing department to ask the user or subscriber of goods in their company or organization about the specification of an item clearly before making a purchase, especially for goods that have a specific specification and is not commonly sold in the market. For technical items that are common or mass products, purchasing staff should be familiar with the part number or national and other international code standard (UNSPC, SNI, CTN, etc.) as the unique code of a product to easier to find out from material/goods catalogue and then submit to the supplier.
An understanding of the needs
In addition to having knowledge of an item, purchasing/procurement staff have to know how much and when to buy a goods/material. Direct users of goods generally requires only that the goods must exist at a particular time, they do not want to know how the procurement process. For goods/material procured incidental or fast moving product with low price and can be found at local market, purchasing process could be done at the same time with request from direct user, its means those material to be procured without planning, but for goods that use continuously better to know the needs of each period, hence procurement process can be well planned to avoid over stock or stock out. It also will have an impact on overall purchase cost if purchase frequent too often or to do otherwise, whereas in fact it can be planned as periodically. Therefore purchasing or procurement staffs absolutely have to know inventory management, particularly inventory planning and control. Associated with knowledge about this material needs at least a staff purchase must also know the priority of needs, especially when at the same time is required to purchase at once several items, to know the priority or importance level of an item and the amount and timing requirements then these variables can be used as part of the planning or needs analysis which can reduce the cost of purchasing.
Orientation on saving cost
Does not always mean savings to buy the cheaper price, because now the price is not the only requirement are taken into consideration to purchase an item, service and term of payment is another thing that must be considered to decide the purchase of an item. Saving is defined as the entire process of purchasing or procurement. Unlike the traditional purchase model where due to difference of not significant price but causing loss of time and energy large enough. Saving cost is each factor that is measured in KPIs procurement, but often forgotten in the daily activities associated with the procurement process, many staffs that have not really aware with cost saving oriented. Today, with more modern management of almost any company or organization purchasing activities with the support of the standard requirements, they have a database of suppliers, have a plan for the needs of every item and supported by adequate logistics software, actually with these support, cost saving as one of the KPIs to be achieved well and easily but generally not a technical requirement which causes the failure to achieve this, behaviour of staff purchase and control of management that contributed to the failure to achieve a KPI or lead to increased cost of purchasing. With a database of suppliers is often a purchasing staff will contact several suppliers at once and without knowledge of the goods and needs, conversation or a bargaining process over the phone will be much longer and of course this will have an impact on increasing indirectly purchase cost. Therefore, the KPIs need to be monitored and controlled continuously, especially saving cost.
After all the ability and expertise of purchasing or procurement staff is absolutely necessary to achieve the company's or organization’s expectations.
"Saving Your Money by Buying Smarter"