Purchasing Processes in E-Commerce
E-commerce is no longer an option but a necessity. In the e-commerce ecosystem where competition is at its peak, it is important for a sustainable e-commerce to set up the purchasing processes very well. Purchasing processes in supplier management should be based on certain strategies. Purchasing processes that need to be structured within the framework of specific targets also fulfill a critical function in the supplier management strategies of e-commerce sites.
Buying has a direct correlation with the growth of the e-commerce venture. The correct and effective integration of purchasing processes into the e-commerce system contributes to sustainability. Procurement, one of the main functions of supplier management, is also at a strategic point in competition.
Supplier Management and Purchasing
Supply; It includes the acquisition of goods for production or sale. Supplier management is a system that records all suppliers of companies. One of the main elements serving the supplier management, which gives the opportunity to evaluate the suppliers according to criteria such as location and quality, is purchasing. An integrated supplier management automates purchasing processes. It ensures that the orders in the system are shared electronically with the suppliers.
Continuity of relations is essential in supplier management. The parties are expected to develop cooperation on an independent and equal basis. In this process, one should not have control over the other stakeholder. An integrated supplier management should be targeted with strategic collaborations and joint initiatives.
Buy; are equipment, materials, hardware, parts and service items purchased by any company from any supplier to use in production or sell. Purchasing from suppliers is a set of functions that encompass the responsibility of obtaining services with all these items. There are also topics such as offer management, order, delivery note (e-dispatch note) and invoice (e-invoice) in purchasing processes.
The purchasing processes of supplier management are basically based on the following purposes;
- By controlling product stocks, to minimize inventory costs and losses.
- To ensure continuity in product quality; establishing a quality – cost balance.
- Finding reliable suppliers in every sense; to protect these suppliers.
- Standardizing the products, services or materials or services provided.
- To implement quality control processes in product entries.
- To supply the required products and services at low cost.
- To increase the competitive power and bargaining capability of the institution through relations with suppliers in mutual trust.
- Ensuring order and continuity in product, service, material, service, equipment, hardware or data flow processes.
- To periodically hold meetings to improve purchasing processes between different departments.
Purchasing decisions are strategically important to the success of the venture. Purchasing the right products, goods or services at the right and desired place, at the right and desired time, at the right and expected price, in the right and desired quality, in the right and desired quantity, is the most fundamental issue of purchasing decisions.
In purchasing decisions, products or services that meet the expectations and requirements of customers in the best and most accurate way and have reliable and quality features are considered as the “right purchasing decision”.
Purchasing decisions also include procedures for the location, time and how to deliver the product. The preparation of relevant instructions and documents is part of the purchase.
The costs incurred by the buyer should also be taken into account in purchasing. Costs have a direct impact on the profitability to be achieved. Failure to supply the right amount of products in purchasing activities leads to stock costs and missing input problems.
One of the important topics of purchasing decisions is information. Information such as the nature, features, price, business conditions, supplier conditions, payment terms, delivery, post-purchase support and insurance of products or services are factors that should be evaluated in a correct purchasing decision.
E-Commerce and Purchasing
Effective design of purchasing processes in e-commerce directly affects the continuity and profitability of the enterprise. Simplifying e-commerce purchasing processes as much as possible plays a dominant role in supplier management. In the e-commerce initiative, the purchasing department should be optimized with technological integrations. Strategic, continuous and global business relationships should be established with suppliers; All responsibilities in the process must be addressed.
Supplier selection in e-commerce purchasing processes is a fine line for competitive e-commerce. A supplier that does not comply with national standards can hinder the sustainability of e-commerce processes. For this reason, purchasing processes in supplier management should be set up with the right decisions from the beginning.