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Purchasing planning: definition and important aspects for buyers
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Purchasing planning in a nutshell:
Purchasing planning is the systematic determination, scheduling and budgeting of a company's procurement requirements. It enables the purchasing department to achieve optimum security of supply while simultaneously optimizing costs through forward-looking demand bundling and strategic supplier selection.
Example: An automotive supplier prepares its annual purchasing plan for the coming financial year in October, defines a requirement of 50,000 aluminum parts with quarterly deliveries of 12,500 units each and secures a price advantage of 12% compared to short-term orders through framework agreements.
Contents
What is purchase planning?
Purchasing planning is the strategic process of determining requirements and procuring goods and services in a company. It comprises the systematic analysis of material and service requirements, the definition of a purchasing strategy and the coordination of orders. The aim of purchasing planning is to ensure security of supply, optimize costs and increase the efficiency of procurement processes.
Core elements of purchasing planning
Importance of purchasing planning in the procurement process
Purchasing planning is essential in the procurement process, as it forms the basis for effective and efficient purchasing activities. With sound planning, companies can avoid supply bottlenecks, reduce costs and ensure the quality of purchased goods. It also enables better negotiations with suppliers and helps to minimize risk.
Purchasing planning: from manual determination of requirements to predictive procurement
Based on the theoretical importance of procurement planning as a strategic process, its practical implementation is crucial to a company's success. In today's dynamic business world, there is increasing pressure on companies to make procurement processes more efficient and agile. In order to meet these challenges, a shift from traditional methods to modern, digital approaches is required.
Old: Manual purchase planning
Traditional approach: Traditional purchasing planning is based on manual processes and empirical values from the purchasing department. Requirements are often determined using simple spreadsheets, based on historical consumption data and fixed order points. Communication with suppliers is mainly by telephone or fax, and orders are processed individually and without central control. This approach is time-consuming, error-prone and slow to respond to market changes. A lack of transparency often leads to overstocking or supply bottlenecks, which both increases costs and impairs production planning.
New: Predictive procurement
Predictive procurement: Modern procurement planning uses digital technologies and data analysis to proactively shape the procurement process. By integrating ERP systems, big data and AI in procurement, requirements are not only recorded but also predicted. Algorithms analyze real-time data from sales, production and market trends to create precise forecasts. Automated order suggestions optimize stock levels and minimize capital commitment. In addition, cloud-based platforms enable seamless communication with suppliers, while blockchain technologies improve traceability in the supply chain. These innovations lead to increased efficiency, cost savings and greater adaptability to volatile markets.
Practical example: Mechanical engineering industry
A medium-sized mechanical engineering company implemented a predictive procurement solution. By using AI-supported forecasting models, the purchasing department was able to identify requirements three months in advance. This led to a 20% reduction in stock levels and a 15% reduction in material costs thanks to better purchasing conditions from suppliers. Automated communication via a digital platform reduced the administrative workload by 30%. Overall, the delivery capability of the company improved to 98%, resulting in higher customer satisfaction and competitiveness.
Conclusion on purchase planning
Effective procurement planning is essential for companies in order to optimize costs and ensure security of supply. Through systematic demand analyses, strategic supplier management and digitalized processes, companies can sustainably improve their procurement processes. Despite challenges such as market volatility and forecasting uncertainties, modern technologies such as AI and predictive analytics offer new opportunities to shape procurement planning in a future-oriented way and remain competitive.
