Perhaps one thing we never really give much thought to is how everything works on a manufacturing company’s end. There are so many jobs in that sector, but we tend to think of people on or manning an assembly line, instead of all the jobs that surround that area of work as well. Someone must be choosing and purchasing some of the parts that are used in the assembly line, after all, just as someone must be overseeing the packaging and shipping of the final product to prepare it for its eventual final journey into the hands of a retailer. Some manufacturing purchases also include buying parts for the machinery to work correctly. There are plenty of steps when it comes to making a manufacturing purchase, whether it’s for clamps, abrasives, drill bits, or other tools that help the job get done or parts needed to complete the item being created.
What’s the Scoop on Making Manufacturing Purchases?
Did you know that almost 65% of manufacturing purchases are influenced by a minimum of three people? The decision making chain passes through several different hands before finally being completed. And almost 70% of people who make a purchase tend to look for products or services at least once a week, if not more. Whether it’s searching for the right type of clamps to making sure that they’re well stocked, manufacturing purchasers must make sure that their purchases align with the company’s budget and ultimate objective.
Many manufacturing sectors will put out projects about spending to calculate budgets and be open about the money they’re spending with the public or government. For example, Gardner’s Capital Spending Survey is the biggest and most complete survey that goes through future spending in the durable goods manufacturing industries. In 2015, the forecast for metal-cutting spending was just under nine billion dollars, up almost 40% from 2014. These survey forecasts can also be quite telling about how the economy is doing.
What Are Some of the Responsibilities for Manufacturing Purchasers?
Manufacturing purchasers, above all, have to make sure that what they’re buying is in sync with the larger company’s decisions. If a company decides to use a different kind of supplier or part, like different clamps, for example, the purchaser will eventually have to swap out the old part for the new part. If the company starts manufacturing a new product, the purchasers have to up the quantity of raw materials and supplies needed to create that product. Managing inventory is another task that often falls upon manufacturing purchases — which makes sense. They should know when their stock of clamps is out, say, so that they can go ahead and purchase more. Manufacturing purchasers are also responsible for negotiating contracts with their suppliers — this can often lead to regularly filled orders by using master agreements. The orders will be automatically periodically be refilled at mutually agreed terms. Additionally, the purchaser will make decisions about quality versus quantity — sometimes a lower price isn’t always necessarily the best option, and he or she will have to make that call.
How Does Their Job Factor In to the Larger World?
First and foremost, their decisions affect what you end up purchasing in the store and how often you’re able to get it. Without the correct parts, the items can’t be made. But secondly, their purchases are often indicative of the economic health of the manufacturing industry. One way this data is compiled is by something called the PMI — the Purchasing Managers’ Index. Around 300 executives at different companies fill out the survey every month. Five major data points are covered in the survey — the number of new orders, how inventory levels look, production, supplier deliveries, and how the employment arena looks. The results indicate how current business conditions look for people at all ranges of management — from people who make the ultimate decisions for the company to the purchasing managers themselves.
If you’ve ever been interested in a job in the manufacturing sector, this might be an interesting on to pursue. It can be very hands-on and fulfilling!