Increasing demands and decrease in the cost of the commodity and even the new advances in the technology are creating immense pressure on the purchasing departments. Roland Berger Strategy Consultants carried out a outlook on the Purchasing Departments of nine vehicle manufacturers. They followed all the present purchasing trends and suggested six best practices to be followed by the automotive industry.
Source should be low-cost countries: By purchasing in low-cost countries you can realize your increasing cost savings.
Create a global supplier: The decision should be taken depending on the best global supplier foot print for purchasing.
Ensure access to technological innovations: Manufacturers should research on the technological innovations and ensure for the accessibility.
Standardize: Manufacturers are focusing mostly for reducing the cost but at the same time they are improving the prerequisites of engineering.
Globalize structures and decision making: Manufacturers are improving their organizational structures and even the decision making to improve in their engineering.
For a perfect purchase, the companies should keep in mind the three factors like strategic fit, comprehensiveness and application. To ensure whether a company is strategic fit or not. The decisions in the business must be in complement with the other functional areas which have the same aims. The steps should be comprehensive so that for creating an impact on improving the cost. Finally the processes must be monitored constantly and are to be applied for success.