PURCHASE RESEARCH

Shailendra Rana
Invertis University,Bareilly

Shailendra Rana,Invertis
University,Bareilly
 WHAT IS PURCHASE
RESEARCH
• Purchase research may be defined as a
systematic approach to ensure
continuous flow of inputs into the
organization to create value to customer
satisfaction.
• A systematic approach helps in
understanding the requirements of the
organization to achieve its goals.
Shailendra Rana,Invertis
University,Bareilly
 PURCHASE RESEARCH
• It also helps in understanding the dynamic
situation in which the organization
functions and aligning purchase strategies
with corporate strategy.
• It also helps in identifying the gaps between
what should happen and what is happening.
Purchase research helps in careful
organization of steps to achieve the goals of
generating value for each rupee spent.
Shailendra Rana,Invertis
University,Bareilly
 PURCHASE RESEARCH
• Purchase Research is a continued
development and refinement of
purchasing techniques to contribute
to the profit of an organisation
• Areas
Economic analysis
Market analysis
Supplier analysis
Shailendra Rana,Invertis
University,Bareilly
PURCHASE RESEARCH AREAS

• Supplier analysis
• Inbound logistics analysis
• Price analysis
• Cost Analysis
• Procedural analysis
• Special projects
Shailendra Rana,Invertis
University,Bareilly
 SWOT ANALYSIS
• Strength and weaknesses are internal to
the organisation
• Opportunities and threats are external to
the organisation

Shailendra Rana,Invertis
University,Bareilly
 PEST ANALYSIS
• Political environment
• Economical environment
• Sociological environment
• Technological environment

Shailendra Rana,Invertis
University,Bareilly
 ECONOMIC ANALYSIS
• GDP
• Growth rate
• Business cycles
• Inflation
• Channelisation

Shailendra Rana,Invertis
University,Bareilly
 MARKET ANALYSIS
• Supply trends
• Technological innovations
• Substitutions
• Evolution of new materials and
standards

Shailendra Rana,Invertis
University,Bareilly
 INBOUND LOGISTICS
ANALYSIS
• Approximately 20% of the cost of
the materials is logistics costs
• Supply channels
• Mode of transport
• Vendor managed inventory
• Consignment stock
Shailendra Rana,Invertis
University,Bareilly