How to control and manage the quality in purchasing?

A survey shows that the total purchase expenditure accounts for about 55% of the sales revenue. The quality of enterprise procurement directly affects the level of enterprise management. Only professional, rigorous and dedicated people can scientifically manage and maximize the value of the 55% of the expenditure, so as to help the enterprise realize its strategy. Therefore, a good purchase for the company has a pivotal position and value. So, what is the most important purchase? Cost, quality, delivery time… Are all very important, so we’ll talk about the quality control and management in the procurement in this issue.

How to control and manage the quality in purchasing? There are a thousand different ways to think about a thousand purchases, such as centralized management and fixed-point purchase, which need to be managed by system, purchase should be balanced with many ideas, of course, suppliers need to be encouraged and so on. However, we will find a problem: these contents are relatively scattered, which is not enough to become a systematic operation mode of purchase quality control. What should I do? We may as well strictly control each link from the purchasing process, so as to make the purchasing quality clearer and clearer.

What is the source of procurement? Some say it’s materials. Some say it’s suppliers. In fact, it’s suppliers. What about suppliers? Qualification, strength, product and reputation must have a comprehensive understanding before signing the contract cooperation. Of course, in order to prevent and control risks, it is necessary to select several more suppliers at the beginning and prepare plans for them. This involves our supplier management at the beginning, which will not be expanded here. Without long-term reliable time precipitation, it is not enough to directly transform into strategic cooperation.

The supplier has been finalized. There is no problem in all aspects. How to control the quality next? The contract has become an important legal basis, not only the quality of the purchased products must be quantified, but also the disposal of the unqualified products must be strict. Looking at the case between Toyota and its suppliers, we can see that the quality cannot be a little sloppy, and all details and risks are presented in the contract, so as to avoid postponing and wrangling.

The third line of defense is incoming acceptance. Since all the quality and quality problems in the contract are handled in a very clear way, the rest will be handed over to the receiving acceptance personnel. Material acceptance is a gate for the gain and loss of the enterprise’s interests. It must be strictly controlled, strictly in accordance with the terms of the contract, and take immediate action if any inconformity is found.

The last way is more like the survival of the fittest of the natural law, which establishes a competition mechanism among multiple suppliers, so as to establish a supplier team of strategic cooperation. It is necessary to establish a foreign aid team that can fight side by side with the enterprise and share the same fate.

Simplification of complex matters is the secret of enterprise management. The seemingly complex and trivial purchase quality becomes very clear after the process is deconstructed, which is also an important reason why we value the system more. Nowadays, we can usually control the quality of these purchases through the ERP system, such as the purchase management suite in SAP cloud ERP system, which makes all aspects of the purchase process, data and Internet, and becomes an important data, indicator, analysis, assessment and even decision-making tool for the enterprise purchase department. Under such a system suite, it makes the quality control and management in procurement very simple.

For a more comprehensive understanding, consult the acloudear — SAP partner.

This article "How to control and manage the quality in purchasing?" by AcloudEAR. We focus on business applications such as cloud ERP.

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