3 reasons to love the Shopping area

In these times, it is fair to say that in most companies, the purchasing area increasingly plays a leading role. Thanks to it, the level of supply, quality and competitiveness is maintained. A good purchasing department or department avoids waste of materials and guarantees the financial solvency of the company.

On the other hand, anyone who does not belong to a purchasing area will tell you that in their respective positions they also manage a high level of quality, competitiveness and productivity.

For example, the sales area will argue that by bringing in new customers and maintaining relationships with existing ones, they are the ones who have a high standard of competitiveness in the company over other areas; or the finance area, highlighting its fundamental role in the financial health of the company.

What differentiates Purchasing from other areas?


1.  It is with you from the beginning

Can you imagine if the productivity of a new employee fell on you?

Well, it’s a little difficult to assimilate because the purchasing area is not the one who greets you or does the induction when you enter a company, but the chair you sit in, the desk, the pencils you write with, the laptop where you work. , etc., everything was acquired and managed so that you have it on time through the purchasing area.

We take for granted the fact of having the work tools from day one and shopping had a lot to do with it.


2. He is the “hero without a cape”

Suppose you belong to the commercial area of ​​a construction company and you have a contest to win a client. You are a great salesperson, with persuasive arguments, with a powerful personal brand, I represent a good company and with a great relationship with the decision makers in the company where you want to sell. The relationship is so good that they have told you that only the price can make you win that contract.

Any idea who could help you win the contest? Correct, the purchasing area is the ally you are looking for.

Probing the market to find the best suppliers in both quality and price is what in this case will determine who will be the winner of the contest. A Purchasing area that has great operational management, with a strong supplier base and effective negotiation mechanisms can have a direct impact on the acquisition of new customers.


3. They are the company’s favorites (often without being recognized)

Imagine being the owner of a company that has $10M dollars with capital invested in the stock market where you earn (thanks to great management of the financial/investment area) 10% profitability per year, which is equivalent to $1M per year.

On the same day, Compras makes an offer with a budget of $10M that it executes through a reverse auction, generating savings of 25% of the total value for an amount of $2.5M.

If we look only at the numbers, good Purchasing management has 2 times better profitability than good investment management; without counting the time each one takes. How not to be the favorites?

In summary, it is vital to give importance to the Purchasing area, as well as provide them with the tools and recognition they deserve to achieve all the company’s goals that, at the end of the day, benefit everyone.

Ubaldo Zavaleta

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