Purchasing

1. PURCHASING

2. INTRODUCTON
Purchasing is the second important step for a
complete operation. once the planning of menu is
over, we concreate on purchasing so that the
following steps to be verified for an effective opeartion.

3. OBJECTIVES
Maintain adequete supplies
Minimise investments
To run a smooth operation
Maximise quality

4. Accurate description of desired commodity or service
Selection of possible sources of supply –Thomas Register
Determination of price and terms
Preparation of purchase order
Follow-up or expediting
Receipt and inspection of goods
Clearing the invoice and payment •Maintenance of records
StepsinPurchasingProcess

5. DescriptionofProductorservices
Description by brand
“or equal”
Description by specification
Specification by physical or chemical characteristics
Specification by material & method of manufacture
Specification by performance or function
Description by engineering drawing

6. Use of quotations and competitive bidding
Firm bidding
Determination of most advantageous bid
Collusive bidding
The problem of identical prices
Negotiation
Provision for price changes
Discounts
Contract cancellation
DeterminatonofPriceandTerms

7. NegotiationasaMethodofPrice
Determination
Framework for planning and preparing for
negotiation
Ground rules for successful negatiiation

8. BestBuy
The best buy is the best combination of technical and
procurement factors.
Technical Factors Procurement Factors
Useful
Materials of Construction
Design
Price
Delivery
Lead time

9. LegalAspectofPurchasing
Four Factors of a Valid Contract
Component parties
Legal subject matter or purpose
An offer an acceptance
Consideration

10. THANKYOU!