Improving the effectiveness of purchasing in a small company: A case study

This paper deals with improving the effectiveness of purchasing in a small company. The purchasing has a tremendous influence on the performance of manufacturing, as most of the companies purchase about 60% of the components and raw materials from suppliers. Also, the contribution of Small and Medium Enterprises (SMEs) to national economy is significant. Realizing the role of purchasing in SMEs, an attempt has been made to present the experiences of improving the effectiveness of purchasing in a small company located in Germany. The proposed purchasing system in the company has been suitably embedded with the current MRP system. In addition, recommendations for improving the effectiveness of purchasing in SMEs are presented.

Keywords:

• Purchasing
• Smes
• Case Study
• Recommendations