Let's look at how a purchasing department (or sometimes called the procurement or supply management department) may interact with other departments and affect company performance. For instance, how does purchasing affect the finance department and the company's financial performance? Also, how does purchasing affect the engineering or operations centers, marketing and sales, and administration?
PURCHASING DEPARTMENT
Purchasing department is the main and important part of the supply change management. As it helps to fulfilling the need of company by purchasing required resources on time. It helps to reduce the cost of doing business as always tries to minimize the cost of production by purchasing product on lowest cost.
Purchasing department may interact with other department and affect the company performance by following ways:
Question 2. How does Purchasing affect the finance department and the company's financial performance?
Solution 2.Every companies finance department wants to reduce the cost by which company can increase its income statement. If Purchasing department will buy the resources like raw material or any other product for the company on reasonable price then they can minimize the cost and can increase the profit easily. Rest of remaining amount finance department can gave it for further expansion works in their business.
Question 3. How does purchasing affect the engineering or operations centers, marketing and sales, and administration?
Solution 3.
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Let's look at how a purchasing department (or sometimes called the procurement or supply management department)...
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QUESTION: Take a closer look at S&S Air’s ROE
through DuPont identity. Can Chris recommend any changes that could
improve it further?
Pg. 1
Pg. 2
Extra information:
Financial analysis calculations:
current ratio = 0.74
quick ratio = 0.39
cash ratio = 0.15
total asset turnover = 2.01
inventory turnover = 27.96
receivables turnover = 54.92
total debt ratio = 0.43
debt-equity ratio = 0.74
equity multiplier = 1.74
times interest earned = 5.26
cash coverage ratio = 8.12
profit...