• Purchasing

    “Nobody is rich enough to always afford the cheapest.”

Purchasing in Shopfitting

Purchasing in shopfitting not only means the best possible purchase prices and conditions, but also highest possible standardisation, as the purchase has a direct impact on the Inventory Management and Production. Therefore purchasing activities are often coordinated on an international level.

On the one hand, Purchasing is the acquisition of goods and services (Operative Purchasing) but also the discovery of new suppliers and the negotiation of conditions, as well as the appraisal of the suppliers (supplier audits) (Strategic Purchasing).

Strategic Purchasing


  • Planning and controlling of the respective product line related material cost development
  • Realisation of national/international resourcing market research
  • Analysing the buying behaviour of the respective competitor
  • Determining the product line related number of suppliers
  • Definition of the allocation strategies
  • Standardisation (unification of components) for bundling of purchasing volumes
  • Meeting new suppliers on national/international levels
  • Planning, execution and documentation of supplier audits for supplier evaluation
  • Price and payment terms negotiation with current and new suppliers

Operative Purchasing

  • Securing and execution of an effective purchase, processing of requests, carrying on frequent price- / bonus negotiations with current suppliers
  • Securing the disposition, acquisition and storage of all necessary basic, auxiliary and operating materials, as well as trade goods by means of deadline and cost aspects
  • Securing a timely and daily based processing of the Purchasing Department relevant transactions/master data in the in situ deployed ERP system.
  • Managing of purchasing statistics, as well as processing of supplier evaluation and comparisons in matters of quality and cost aspects

What is acquired?

Depending on the furniture and the used materials the Purchasing in shopfitting is responsible for the acquisition of basic materials like chipboards and rims, laminated plastics, consumables like glue and screws, components made of glass, metal and plastics, investment acquisitions like complex machinery and manufacturing facilities, tools, various services for producing, like cleaning and maintenance, services for the transportation of goods and their assembly, as well as the acquisition of whole furnishings and the purchasing of construction works like electro technology or air conditioning.

Summary

Purchasing in shopfitting is consequently supply chain oriented with the differentiation of acquisition, planning and disposition. To reliable and efficiently carry out even complex projects, shopfitting requires competent suppliers as partners who are integrated in the manufacturing chain. These specialist companies provide individual product solutions, deliver components just in time to their point of destination and are aware of their specifications. The shopfitters can therefore use a wide range of innovative surfaces, materials and components that do not only convince in terms of functionality, but also show completely new design perspectives. When it comes to implementing the company’s goals, the suppliers play an important role. They come with expertise and skills that can be used to work on forward-looking products, technologies and processes.

4 Core issues for purchasers:

  • Do you know the resourcing markets of your suppliers?
  • Are you aware of the material/purchasing structure of your most important suppliers?
  • Do you know how your suppliers calculate their purchase prices and their selling prices?
  • Do you know the cost structure of your suppliers?

Statements related to the purchasing philosophy

“The value of an object is exactly what the purchaser is willing to pay for it.”

“If the costs of your suppliers decrease your purchasing prices must decline, too.”

“Nobody is rich enough to always afford the cheapest.”