How could an efficient purchasing strategy helps you to increase your profits?

There are so many ways, mainly: whatever action can reduce Time, Efforts, Cost of the company (product/service), raw material or contract, Then that can be considered as efficient purchasing strategy because it is helping and benefiting the company, like below: - Money Saving: Compare between the suppliers and get the most competitive offers without ignoring the required specifications and quality level.
- Future Plan/Demand: That would help purchasing to place a bigger orders at good price or hold a long-terms-contract with good rate and features.
- Related Expenses Cost reduce: Storage, Transporation and Preventive Contracts.
That would help in reducing the cost because you have a plan also you know approximately the exact duration and volume in advance so you will be able to make a usefull deal to the company.
Example: Transporting ''X'' item with big quantity at one time, that would save the transportation cost to be in one trip instead of making a several small orders with more transportation costs due to unclear demand of that raw material.
Where the weight is also involved as most of the transporters are providing a lower price for big material than the light.
In my opinion, all efforts whether tangible or intangible, can be considered as efficient strategy (in general) and for Purchasing (the time and money saving are the most important ones).
Regards,

There are so many strategies , which have been mentioned by my colleagues ...Also ensuring that you foster professionalism in the buying function by hiring seasoned prefesionals,who uphold ethical practices which put the company first.The company can foster this by giving purchasing department the same recognition it gives other departments,by rewarding competitively and ensuring adequate incentives are in place for the purchasing people.Purchasing must be represented in the board,and must be seen as contributing to profitability,as opposed to viewing the function as service department that is increasing costs.And when a signiicant saving is achieved ,awarding individuals when landmarks are attained .Thank You  

Everybody knows the rule of thumb: Buy the cheapest possible.
However, there are risks that you must avoid, because a small saving today may very well transform into a nightmare tomorrow.
I want to point out that conformity is the key.
For that reason all serious companies are having supplier asessment procedures that not only asks suppliers to confirm what they can do, but are requiring details on their specific equipment.
As well, available human resources are an important criterium, especially when we are talking about tight deadlines, and when a saving in cost may translate in huge penalties for late delivery.
Therefore, the criterium of cost saving alone simply does not work.
A complex set of criteria, that includes follow up of product's behaviour in work, is the best approach in asessing the activity of a purchasing department.
Just an example: Somewhere in the Gulf area, a certain company has brought an important quantity of pipes.
When notified that instead of grade B, material should have been grade6, they claimed such a quantity of pipes exists in the same vessel and is available for the same price.
Customer has seen that they simply removed old markings and remarked the same lot of material.
You may imagine that such a company flew away from the approved vendor list.

1.Identify the right material .
2.Identify the right supplier.
3.In time delivery and proper negociation.

SOURCING THE PRODUCTS AT RIGHT TIME , COST AND QUANTITY, BY MAINTIANING OPTIMUM INVENTORY LEVEL, DEMAND PLANNING, SALES FORECAST - SHORT / LONG TERM, SETTING  RE - ORDER LEVELS.
 

Purchasing Strategy refers to a business or organization attempting to acquire  goods or services to accomplish the goals of the enterprise : -          in the right quantity; -          in the right quality, -          at the right time, -          in the right place; -          from the right source Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
-          To optimize the purchasing process and to minimize the order lead time to the less level -          To develop the buyers efficiency through the professional  training.
     

1- purchasing research and planing (evaluate new products, expecting in quality and price change,)
2- purchasing cost management,developing suppliers,volume purchasing and reducing scraps.
3- price change management.
4- volume contracts.
5- stockless purchasing.