2. Group Members
1. Sukanya Shetty 42
2. Mitesh Shetty 40
3. Nitin Hegde 18
4. Tejashree Kolamkar 24
5. Joel Steevan 45
3. INTRODUCTION
• Formal process of buying and selling of goods and services.
• Main activity.
• Place where money is spent out of organization.
• Decides profitability of the company.
• Important function.
• Usually vary from one organization to another.
4. Principles Of Purchase
• Buying the material at right price.
• Buying materials of right quality.
• In the right quantity.
• At the right time.
• From the right source.
• At the right place.
• With right mode of transport.
6. Send enquiry to the vendors :-
• The buyer releases the enquiry to the vendors.
• 3 vendors.
• Capability of making items as per the quality required.
• Essential to fill up the quality requirements of the item.
7. Get Quotations from Vendors :-
• Buyer gets Quotations from different vendors.
• Maximum 3 are selected.
• He tabulates the quotations and finds the lowest quoting
vendor suitable according to the buyers estimated cost.
8. Study and compare the quotations with
our estimated costs :-
• The buyer selects 3 vendors.
• From these 3 vendors the lowest quoting member is
chosen.
9. Negotiating the quoting to fix the price :-
• The buyer negotiates with the vendor to agree upon a
certain amount.
• Both the buyer and the vendor conclude with a fixed
negotiated price.
• Hence the order is placed to the right vendor.
10. Follow-up with the vendor :-
• Important function in the life of a buyer.
• Highly under valued and seen as unpleasant.
• Buyer has to have good skills to follow up.
• Rarely vendor supplies materials as he promises and as
what is discussed and agreed amongst two parties.
11. Get and inspect the material :-
• The buyer get the material from the vendor.
• Buyer imports the materials from the vendor and
inspects it accordingly.
• Inspection leads to “make sure no damage is occurred
while transporting and it must be as per the booking of
the buyer.”
• Inspection is mainly done by the purchase department
professionals.
12. Stores credit the material :-
• After inspecting done by the buyer, the buyer stores the
goods in the warehouse.
• Payments are made on cash or credit basis.