Purchase and Logistics Lecture 5

Question 1

The added value of the professional buyer lies in the ability to act
as a facilitator for the supply process:

Answer 1

• Identifying new, potential suppliers and business partners for the company’s
  changing business needs
• Being involved in new product development and investment projects
• Supporting internal customers in defining purchasing specifications
• Preparing and carrying out contract negotiations, setting up requisitioning and
  ordering routines (e.g. through electronic buying catalogues, e-Procurement) in
  such a way that users can place orders themselves
• Setting up requisitioning and ordering routines in such a way that the users can
  place orders themselves
• Place orders at suppliers and maintain and monitor orders, contracts and supplier
  files
• Monitoring outstanding orders and financial obligations
• Follow up and evaluation of supplier performance and maintaining relevant supplier
  documentation

Question 2

How is the purchase price determined?

Answer 2

1. Cost-based pricing: The supplier’s offering price is directly derived from his
   cost price.
2. Market-based pricing: The price of the product is determined on the market
   and is generated by market circumstances (demand, supply, stock positions,
   economic factors etc.)
3. Competitive bidding: The price is influenced by market factors as well as
   cost factors. This situation is most common.