Purchase and sales management


Purchase and Sales management represents one of the considerable sources of competitive advantage amongst companies within the global market. Stiff competition amongst industries characterizes the current market environment and such considerable event could be traced back to improvement in technology and rise in the sources of demand and supply. Capital existence in many organizations and individual creative business designs all contributes towards the distinctive nature of purchase and sales chain management.

There is always significant power shift downstream within the management chain, whereby the focus is on the consumers of products and services. This makes it necessary for companies to consider active and passive role their products play towards consumers, whereby every process is undertaken with satisfaction of consumers as the prime objective (Zhao et al, 2007, pp 40-80).

Purchase Management

Purchase management refers to the process of directing the flow of goods and services within a company set-up. The process involves handling of data relating to supplier contact.

Knowledge on specific areas is required for the purposes of effective handling of the whole chain, such knowledge include; supply chain, inventory procedures, business and tax laws, logistics within transportation as well as business and laws on taxes.

Purchasing officer is required to have adequate knowledge on the products and services, planning, execution of the whole process, identifying purchasing strategies capable of profiting the company (Godsell et al).

One of the crucial stages in purchase management is sourcing and identifying reliable suppliers. Such ideas and knowledge could well be learnt from the internet and various occasions such as trade shows and conferences.

Dealing with potential customers within the international market requires the knowledge of foreign languages. However, potential suppliers can always be assessed in-terms of their ability to deliver quality merchandise at affordable prices and within scheduled time.

Purchasing management requires professionals having good negotiating abilities, those who understand well technical product information, have excellent mathematical abilities, knowledge on spreadsheet, marketing and capable of making superb decisions. The responsibilities associated with purchase management always require excellent leadership skills.

There is need for the buyers to have abilities enabling them to select quality products that will attract consumers. Such activity requires understanding on economic conditions affecting consumer-buyer decisions. Merchandise managers are required to work closely with those concerned with public relations for the purposes of creating appropriate campaigns concerning the goods purchased.

Purchasing management goes as far as checking the nature of display done for the goods; this ensures maximum attraction of customers towards the products. They have sole responsibility of ensuring that customer demands are met as well as determining the level of sales (Godsell et al).

Sales Management Process

Sales management process helps in the provision of potential business opportunities. Differences in company performance are determined by deep understanding of the sales management process. The process is utilized in the effective management of executive-level sales initiatives hence minimizes the number of sales cycles.

Improvement in Opportunities as well as productivity levels could be realized through effective sales management. Better results are realized including increased revenues (Council of Supply Chain Management Professionals).

Literature review

Initial trends within the purchase and sales management focuses on time and quality, encouraging minimization and elimination of wastes. Quality of products and services are given lots of emphasis within the management chain (Mary and Vidyaranya 149-161).

Purchase and sales management considers professionalism which helps in the development of various standard processes used during procurement of goods and services. John Storey et al, in their critical analysis of Supply Chain Management consider developments taking place within theoretical and practical dimensions of Supply Chain Management.

This is normally done through critical assessment of possible barriers as well as important trends within the market. According to the authors supply chain management operates within the boundaries of theory and practice. Omera and Bernard, analyses the various kinds of risks encountered within the supply chain management. They are more so concerned with identification of several quantitative and qualitative approaches towards risk and management of purchase and sales chain.

The outcome of their research helps in the operation and management of supply chains based on risk theory. On the same note, they pay much attention on the use of empirical testing on risk theory before incorporating productive ideas within supply chains. This is attributed to the fact that risk theory models are still considered to be in their preliminary stages (Council of Supply Chain Management Professionals).

Mary and Vidyaranya, discusses issues surrounding the designs of purchase and sales supply chain. They major focus is on decisions supporting various models used in assessing the conditions within purchase and sales management. There is intense comparison given by the authors on various researches done concerning the purchase and sales management processes giving practical examples within the international market.

The conclusive review they give considers the fact that various models could be used to explicitly address problems within purchase and sales management processes. The model used within global supply chain comprises of domains within market environment, nature of suppliers, buyers and the various business components (Cooper et al). Coordination and integration within purchase and supply management should be considered for competitive purposes.

However, it requires better knowledge on overall management processes and necessary skills on record keeping and inventory management. This determines the level of success attained within the market by specific companies since supply chain management holds the core of any business company. The authors come into a conclusion that different challenges and overall performances could be improved within the competitive market environment (Elliott and Powell).

Effective management of purchase and sales chain prove to be a complex and challenging task due to increasing market demands. These include continuing trends on expansion of product varieties, short product lifecycles, and improvement in the level of information technology, increased outsourcing and globalization of businesses.

Previously the area on supply chain management was considered of less importance by managers but is currently considered as the heartbeat of business operations within companies. Continued level of competitiveness of a firm within the market is determined by logistics managers and supply chain managers. Logistics involve the planning and management of the flow of information within and through organizations.

The nature of the purchase and sales management within market is well evaluated through the use of value stream mapping. It comprises of the various processes products follow from conversion from raw materials to final products available for sale and also included are the various channels followed to ensure the products reach consumers.

Value stream mapping helps in assessing the effectiveness of the various steps within the management of purchase and sales processes. Analyzing information and product flow processes within the supply chain is necessary since this assists in putting right vital aspects identified in the marketplace. The mapping processes helps in visualizing events hence revealing specific non-valuable tools as well as improved management activities.

The process of visualizing purchase and sales management process assists in giving appropriate picture on the purchasing process through to delivery process. The distribution processes adopted within the supply chain may at times seem out-dated with respect to technological improvement. This raises eyebrows concerning the value of the system used (ISM).

Management relationship between suppliers and buyers is greatly impacted by the various cultures existing within the market place. Certain markets are known to have collective cultures which are focused and highly powered.

Population’s cultural characteristics determine the effects on the management of the buyer supplier relationships. This calls for various businesses within the supply chain to adjust to their respective purchases and sales for the purposes of accommodating partnerships (Chow, Deng and Ho).

At the same time national cultures have an indirect effect on the level of negotiation behaviors amongst the management team members. This shows that culture plays key role in the management and control of purchase and sales owing to the fact that most countries from different regions uses rules and regulations on local and central governments based on prevailing culture hence affecting supply chains.

Companies need to make necessary readjustments within their supply chain structures for the purposes of accommodating major changes within global market (Ellis et al 205-221).


Business Companies need to pay much attention towards service and product delivery aimed at satisfying consumer needs and desires. This could well be attended to when suppliers pay much consideration towards issues such as customer complaints and appropriate product avenues. Such processes have the capability of enhancing Company’s image amongst consumers because of their high profiled image within the market.

For improvement to be realized within the purchase and sales chains business companies should learn to focus most importantly on the quality, cost, performance and issues on prices at which goods and services are sold. Focus should also be placed on the level of supply of consumer goods at different locations. Companies should learn to analyze consumers in relation to their potential and also pay much attention to the processes through which products and services are administered to specific consumer groups.

Usually company’s efforts in evaluating the performance from the consumer’s point of view contribute largely towards positive performance of the company. The processes through which they developed products are defined by quality measures, cost of production and time which contribute a lot towards customer satisfaction (Godsell et al).

Besides focusing on quality of their products based on consumer standards, business companies should expand their concern to include cost of production and appropriate chain of delivery. High level of revenue which is as a result of high sales is often good indicator on consumer satisfaction level. Customers are always drawn to buy more of a product based on the overall benefits they get from the commodities which include pricing and quality.

Companies operating within the regional and international markets operate under central management system which helps in effective management of purchases and sales based on level of expansion. Purchases and sales management usually involves various activities taking place within organization’s business operations.

Works Cited

Cooper, Martha, Lambert, Douglas, & Janus, Pagh. Supply Chain Management: More Than a New Name for Logistics. International Journal of Logistics Management, 8 (1997):1–1.

Council of Supply Chain Management Professionals. 2005. Supply Chain Management/ Logistics Management Definitions. 2005. 3 Nov. 2011

Elliott, Dorinda. & Bill, Powell. Wal-Mart nation. Time, 165 (2005):36–39.

Ellis, Jim, & Williams, Huang. 2003. Cross-cultural in?uences on service quality in Chinese retailing: A comparative study of local and inter-national supermarkets in China. Asian Business & Management, 2 (2003): 205-221.

Godsell, Janet, Allan, Harrison & Emerson, Caroline. Customer responsive Supply chain strategy: An unnatural act? International Journal of Logistics, 9 (2006).

Hagel, Jim & Brown. 2005. From Push to Pull Emerging models for Mobilizing Resources. Working paper, 10 (2005): 2-48.

Harrison, Black & Van Hoek. Logistics Management and Strategy: Competing Through the Supply Chain. London: Prentice-Hall, 2008.

ISM. The Supply Chain Management. Quarterly publication, 2 (2006).

John, Storey, Emberson, Caroline, Godsell, Janet & Alan, Harrison. Supply chain Management: theory, practice and future challenges. International Journal of Operations Production Management, 26 (2006): 754-774.

Mary, Meixel & Gargeya, Vidyaranya. Global supply chain design: A Literature review and critique. NY: Elsevier Ltd, 2005.

Omera, Khan, & Burnes, Bernard. Risk and supply chain management: creating a research Agenda. The International Journal of Logistics Management, 18 (2007):197 – 216.


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