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Disposition in purchasing: definition and important aspects for purchasing specialists

Materials planning in purchasing controls the optimal supply of materials and services and thus forms the backbone for smooth company processes. This structured overview shows you the most important levers and methods that you as a purchaser can use to ensure material availability and optimize costs at the same time.

Disposition in a nutshell:

MRP refers to the systematic planning, control and monitoring of material stocks and orders to optimally cover demand. It is essential for purchasing in order to ensure security of supply with minimum storage costs and to avoid production bottlenecks.

Example: An automotive supplier plans its material requirements for plastic housings with a replenishment lead time of 14 days, a safety stock of 1,000 pieces and an average weekly requirement of 2,500 pieces, whereby the reorder point is 3,500 pieces and automatically triggers a reorder of 7,500 pieces.

Contents

Disposition in purchasing

"Materials planning in purchasing is a fundamental process of operational procurement management and plays a central role in successful corporate management. It comprises the systematic planning, control and monitoring of material stocks and ordering processes in order to ensure an optimal supply for production or retail. In times of global supply chains and increasing market volatility, efficient replenishment is becoming increasingly important. This guide provides a comprehensive insight into the principles, methods and challenges of modern MRP planning as well as practical approaches to optimizing procurement processes."

What is scheduling in purchasing?

Material planning in purchasing refers to the planning, management and control of material procurement in order to ensure that the company is supplied in line with demand. It ensures that the right materials are available in the right quantity at the right time and in the right place. This involves creating demand forecasts, triggering orders and coordinating delivery dates in order to ensure smooth production processes and avoid supply bottlenecks or excess stock.

Core elements of disposition

  • Demand analysis: Determination of current and future material requirements based on sales forecasts and production plans
  • Order planning: Determination of optimal order quantities and times, taking delivery times and storage capacities into account
  • Inventory management: monitoring and control of stock levels to avoid bottlenecks and overstocking
  • Supplier coordination: coordination with suppliers regarding delivery dates, quantities and quality assurance
  • Importance of scheduling for purchasing

    Scheduling is a central element in purchasing and contributes significantly to the efficiency and competitiveness of a company. Effective replenishment enables purchasing processes to be optimized, costs to be reduced and delivery capacity to be increased. It makes it possible to react quickly to market changes and keep the supply chain stable.

  • Cost optimization: Reduction of warehousing and procurement costs through needs-based planning
  • Process reliability: Ensuring smooth production processes by avoiding material bottlenecks
  • Competitive advantage: Increased responsiveness to customer requirements and market trends
  • Guide: Disposition in Purchasing - Strategic Methods and Best Practices

    Implementing effective scheduling in purchasing

    Effective scheduling in purchasing involves the precise planning of order quantities and times to ensure an optimal supply of materials. By analyzing demand data and delivery times, excess stock can be avoided and bottlenecks prevented, resulting in cost savings and improved delivery capability.

    Practical example: Requirements and order planning

    A manufacturer of electrical appliances produces 5,000 toasters per month. Each toaster requires 4 heating coils, i.e. a total of 20,000 heating coils per month:

    1. needs analysis:

    • Monthly production requirement: 5,000 toasters x 4 heating elements = 20,000 heating elements

    2. inventory check:

    • Current stock: 5,000 heating coils
    • Safety stock: 2,000 heating coils

    3. order quantity calculation:

    • Required quantity = required quantity + safety stock - warehouse stock
    • Required quantity = 20,000 + 2,000 - 5,000 = 17,000 heating coils

    4. specify the order time:

    • Delivery time of the supplier: 10 days
    • Order must be placed 10 days before start of production

    Result: This scheduling enables the purchaser to order 17,000 heating coils in good time to cover production requirements and maintain safety stock levels. This avoids production downtime and optimizes storage costs.

    Evaluation and strategic findings

    ✓ Critical success factors

    → Precise demand forecasts: Integration of production planning, historical data and market developments for accurate forecasts

    → Dynamic inventory management: flexible adjustment of safety stocks and order points to changing market conditions

    → Supplier coordination: close coordination with key suppliers for optimized delivery times and order quantities

    ⚠ Challenges and limitations

    → Volatility: fluctuating market conditions and delivery times make long-term planning difficult

    → System complexity: integration of different ERP and planning systems requires a high level of coordination

    → Cost optimization: balance between security of supply and storage costs must be continuously adjusted

    Future trends and strategic implications:

    "Disposition is developing from a reactive to a predictive function in purchasing."

    → AI-supported demand forecasts for greater planning accuracy

    → Real-time networking with suppliers for automated ordering processes

    → Digital twins for the simulation of stock scenarios

    → Sustainability aspects in disposition planning

    Conclusion on disposition in purchasing

    Material planning in purchasing is an indispensable strategic process for a company's success. Precise planning and control of material procurement not only optimizes costs and secures production processes, but also strengthens competitiveness. Increasing digitalization and AI-supported solutions are opening up new opportunities for even more efficient and forward-looking planning. The balance between security of supply, cost efficiency and flexibility in inventory management remains crucial.

    Further resources