How purchasing function tend to have a positive impact on quality costs: Case of

The purchasing function has a great positive impact on the quality costs of the goods produced due to the high supplies that are done to the given company (Luzzini & Ronchi, 2011). A company like Volkswagen ought to purchase quality materials forms its suppliers so that it can be able to attain good quality on costs of production. The purchasing function has to be well balanced with the quality that is applied on the cost as well. This is because; when cost is lowered, it will mean that the quality of the supplied goods that are purchased by the company will compromised to meet the required target. Purchasing is always made to be very strategic because it has high positive impact on the quality cost; since, it will coordinate all the supply networks of given company (Kumar, Clemens, & Keller, 2014). Purchasing function has a great hand in the logistics integration of the company and this will result from the quality costs that is evident in its final produced goods and services. Purchasing function is key to organization because; it tackles the supply management of that company, which is comprised of various aspects that mold it to be in good order. These aspects are inclusive of good communication that has to be well facilitated between the suppliers and the company purchasing the raw materials.

The purchasing function is subject to research interests that are carried out in the company for the sake of making benefit with it (Jonsson, & Tolstoy, 2014). Purchasing functions are said to increase the need for close interaction and they also find and manage corporations with suppliers of all the vital component’s and the modules that are required for use in the company. The purchasing functions manages the company’s supply chains management to ensure that the information that is passes from top to bottom ranks is done very smoothly. When the information flow requires internal and external relationship purchasing functions makes this possible. When the supplier is involved in the product development he will have benefit that will come through the purchasing function of the entire company (Henke, Yeniyurt & Zhang, 2009). The quality costs of the company will definitely experience the centralized and the decentralized purchasing impacts that will be felt as a result. The development of modules in any given organizations are managed by the purchasing functions of that company. A company development is more depend on the specialization and the sophistication that is brought forth by the purchasing function of the company. Diversified purchasing functions that are working closely with the technical development, logistics functions of the company and production department will contribute heavily towards the developments of that company in particular (Gundlach, Bolumole, Eltantawy & Frankel, 2006). The interaction that is brought by the organization is more depended on the way the purchasing function of that company is organized depending on the benefits of supplier involvement on product development. The purchasing function is deemed to work better depended on the early interactions that are made with the suppliers in all the development projects of that company. How a firm works internally relates to how it works externally through the use of the purchasing function that is a very powerful to the company (Tangpong, 2002). In an organization, purchasing function will be known to be an interface between the external counterparts of the organization and internal functions that are experienced by the firm on its way to development. In this case, all the potential purchasing synergies are captured accordingly for the purpose of controlling the local needs of the company. Purchasing function will contribute highly towards the centralization of purchasing parts with the ordering process and the suppliers in particular. When the purchasing function is under the control of many departments, decentralization is felt and this is the reason as to why all the purchases of the organizations tend to be managed by individual business units. Voluntary purchasing councils are based at the field location to ensure that the decentralization that has taken place in the company is well controlled and managed (Gianakis & Wang, 2000). In a purchasing function, the top management of the company are involved in the make-or-buy decisions and the engineering of the supplier contacts that are of great use to the company as they will define the design of the new products that the organization require form its suppliers. The purchasing function of the company, will lead towards having experts who when involved in the buying process covering different aspects will make work to be well done in the organization. Purchasing function will definitely have a positive impact on the quality of the cost in a company because; it coordinates the basic process like specifying, contracting, receiving, ordering, selecting, and evaluation of all the activities that are geared towards improvement of the quality to the cost. Therefore, this explains why the purchasing function coordinates all the groups of experts involved in the buying process as it seeks to get positive impact on the quality cost.

 

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