The issue that I have pinpointed is the buying of goods and services in small quantities. As a sales operation manager, I would advocate for buying of all company supplies in bulk because buying a single item would cost the item more. On the surface, buying goods in bulk seems like a great way to save money . When you buy a large amount of anything, the price of individual units tends to be lower. The more you buy , the less each unit costs you . The processes of buying bulk involve making orders from the wholesalers (Kauffman & Wang, 2002 . When one buys in bulk, the wholesalers will agree to offer a lower price than the price of a single item. If the retailer agrees to purchase a much greater quantity of units, so the wholesaler can maximise profit .
Once the items are bought, they are kept in store whereby a storekeeper is in charge of the store and will keep records when the items are issued to the different departments within the company (Mitchell & Harris, 2005). The initiative will help the company to know the exact number that they require within a specific period and they can be able to budget well thus reducing the cost that could be incurred if excess items are bought and they get perished.
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The issue of buying in bulk helps the company to produce the company products at a lower cost, and when it comes to selling, they will sell it at a lower cost. Customers are always interested in goods that are offered at a lower cost. The company will be able to make more sales leading to more profit (Anand & Aron, 2003). It is always the desire of any company to make a profit because it keeps the company to run its daily activities.
References
Anand, K. S., & Aron, R. (2003). Group buying on the web: A comparison of price-discovery mechanisms. Management Science , 49 (11), 1546–1562.
Kauffman, R. J., & Wang, B. (2002). Bid together, buy together: On the efficacy of group-buying business models in Internet-based selling: t he E-Business Handbook , 99–137.
Mitchell, V., & Harris, G. (2005). The importance of consumers’ perceived risk in retail strategy. European Journal of Marketing .
