Aside from looking at past sales, the buyer also looks at expectations of price fluctuations and movements taking into consideration various factors that affect the market value of production inputs based on opportunities present in the market. With market analysis, the buyer provides the information necessary for the generation of the budget.
Trading operations of the company depend on a structured, achievable and accurate budget derived from sound information and because the buyer is involved in liaising with other departments and suppliers, the understanding of the buyer in relation to the market is the key for presenting the outline of finances. Through thorough research and evaluation of product and price trends, the buyer assures that the company budget sustains organizational activities. A framework on finances is formulated with the participation of the buyer to have a better forecast on expenses. In formulating the framework, the buyer collaborates and liaises with the merchandiser for propositions on spending, stocks, and markdowns. The framework aids in developing a budget in which decisions of the buyer regarding supplies is based on. It is important that the buyer creates a precise buying budget to assure a perfect match on the overall financial budget.
Planning of the budget and its allocation is the backbone of range planning in which a commercially acceptable collection of garments is compiled. The collection of garment supplies revolves around the budget constraints set by the company. Through budget allocation, decisions on acquisition take place. In the process of allocation, the paths of the company money are traced in every aspect it is used. Money spending decisions of the company in the course of acquisitions of necessary supplies provide an outline of the range structure. With the range structure, the buyer makes decisions on the selection of product ranges aimed at a specific market that will make the department operations together with other related business functions run smoothly and in line with the set objectives of the company. . .