What is a purchasing plan?

A purchasing plan is a tool used to define the input needs (goods, services and works) of an organization in a given period of time. Through this process it is determined: what the organization needs, how much it needs, when it needs it and the resources it has to acquire it.

Although in the business dimension it is carried out with greater complexity, the shopping plan is an instrument that can be assimilated to the list that families make before making the weekly, fortnightly or monthly purchase in the supermarket, in this list the products are detailed that are going to be acquired, the quantities that are going to be needed of each one and in advance it is known what the budget is available to cover the cost generated.

Here is a brief bibliographic review on the subject:

Purchase planning and forecasting

Purchasing planning includes forecasts, objectives, policies, programs, procedures and budgets, either for the company as a whole or for any area of it.

The forecasts

Trading is reduced to a strategy based on the options offered by various alternatives. A Purchasing manager who has to take opinions to determine the course to take needs to look to the future consistently and constantly to anticipate opportunities and dangers.

The objectives

Obtain the necessary parts for the integration of production at the best price, quality, in the best payment and delivery conditions, in the required volume, at the right time and at the right place.

Purchase volume

It is essential to buy the required volume according to the planned programs. An insufficiency causes the danger of production stoppage with consequent results. An excess of material causes production surpluses, which means an excessive inventory that originates an idle investment, expenses for material handling, insurance, waste, etc.

Inventory control

Inventory control is a registration system by means of which the physical stock of materials in warehouses, and of these in the process of manufacture, are checked. It is necessary to know when to replenish stocks, as well as to allocate materials to the particular needs of production, and to facilitate the pecuniary valuation of stocks and prevent excessive stocks from building up.

Purchasing Policies

Policies are plans in the sense that they are general approaches or ways of understanding that guide the thinking and action of the members of the company, delimiting an area within which it must be ensured that decisions are consistent and contribute to the achievement of the goals.

Procedures

They must be arranged systematically in order, place where they will be organized and date when they must be executed. For example, in what special order should the steps required to make a purchase be performed? Of course, a single and exclusive answer cannot be given to this question. Different companies design their own systems that adapt to your conditions and your problem.

Shopping program

The Purchasing program can be defined as the administrative instrument that contains the determination of the different steps or sequences to follow for the rational acquisition of materials, specifying the process initiation dates, tolerance times, development time and dates. achievement limits.

The purchasing budget

The budget is defined as "the formulation of plans for a future period, given in numerical terms." Within the purchasing area, budgets can be classified into: purchasing management operating budget and materials or parts purchase budget.

Advantages of making a shopping plan

Competitive prices for buyers Lower administrative costs. Fewer purchasing activities are carried out and, therefore, less paperwork, purchase orders, coordination (whether by phone, email or otherwise), fewer reviews of the delivery of the product or service, etc. Timely purchases. Have what we need for when we need it. This implies being able to respond to the requirements of our users as soon as possible, which obviously increases their satisfaction. Adequate distribution of the workload of human resources over time. By having a good Plan, it is possible to schedule and distribute the procurement processes over time in order to avoid the occurrence of periods with large work overloads. To better face crisis situations.Having the resources ordered and planned so that we know what we have available for other activities Ordering and scheduling purchases means that we do not have to make important purchases urgently Lower inventory costs, since with an adequate Plan it will be possible to define orders with a size and with a frequency that allows to reduce stocks and their associated costs. It helps to achieve the strategic objectives of the institution. Have a historical record. Control and make transparent expenses.Since with an adequate Plan it will be possible to define orders with a size and with a frequency that allows to reduce stocks and their associated costs. It helps to achieve the strategic objectives of the institution. Have a historical record. Control and make transparent expenses.Since with an adequate Plan it will be possible to define orders with a size and with a frequency that allows to reduce stocks and their associated costs. It helps to achieve the strategic objectives of the institution. Have a historical record. Control and make transparent expenses.