Purchasing Management is the oversight of operations that control sourcing and selection, supplier relations, order quantity, and material pricing.

Procurement is an important part of the supply chain, but one where many companies face challenges. As direct material cost advantages becoming increasingly minimized, the processes of purchasing and procurement become even more vital. If a company merely considers direct purchasing price, other contributing costs such as quality control (QC) and lead times may negatively impact product profitability.

Challenges arise when sourcing partners are selected without thorough due diligence, suppliers are mismanaged, demand scheduling is misallocated or forecasting targets over or under-estimate demand. Other problems companies commonly face are the impact of indirect costs that contribute to the actual product cost.

Kong and Allan provides its services by working with both the supplier and the client's purchasing team to improve processes dictating material, information and financial flows. By increasing the coordination and collaboration between the supplier and customer, risks can be reduced and operating flows improved. This can create both lower costs or increase speed.

In the end, the goal is to develop suppliers who are able to grow with the client's operations and create long-term relationships for continued success well into the future. This begins with strong Purchasing Management.