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Purchasing is a process through which an organization attempts to acquire goods or services to accomplish the goals of the enterprise.
Different functions involved in purchasing process are as under.
1. Identifying functional requirement and equipments/services that are required to meet functional requirement along with technical specifications for them.
2. Obtaining administrative approval from authority for procuring the material/service, by presenting business case for same.
3. Ensuring availability of financial resource, by way of obtaining financial concurrence and sanctions for required/estimated amount.
4. Identifying probable suppliers for required material/service.
5. Identifying bid evaluation criteria (BEC), before inviting tenders, to ensure, that biases are avoided in purchasing processes. If the value is very high then organisation may decide to go for open tender, inviting tenders by placing advertisement in News Papers or on web sites.
6. The Request for Quotations are prepared and issued to all probable suppliers along with inviting tenders, mentioning all terms and condition of purchase.
7. Receipt of quotations. At specified time and date, as mentioned in tender document, the bids are received.
8. Opening of bids. All bids received in response to the tenders are opened and proper records of all bids received are maintained.
9. Technical suitability of the bids received is judged by technical department.
10. Commercial evaluation of the offers received is carried out to verify commercial suitability.
11. Comparative statement showing technical suitability and financial aspects is prepared, and presented to purchasing authority, for decision as to which bidder order to be placed.
12. Placement of order to lowest technically acceptable bidder.
13. Inspection of material to be procured, to confirm it meets criteria as mentioned in tender.
14. Delivery of material
15. Making payment
16. Closing of purchasing process.
What else can I help you with?
How does the purchasing function interact with other functions of the organization?
It saves money (expenditures).
What are the key functions and responsibilities of purchasing?
The key functions and responsibilities of purchasing include sourcing and acquiring goods and services necessary for operations, negotiating contracts to secure favorable terms, and managing supplier relationships to ensure quality and reliability. Additionally, purchasing is responsible for analyzing market trends to optimize procurement strategies, maintaining inventory levels to prevent shortages or excess, and ensuring compliance with organizational policies and budgets. Effective purchasing contributes to cost savings and enhances overall operational efficiency.
Functions of SEBI?
1.it prohibitsinsider trading 2.undertakes steps to educate investors 3.registration of brokers and sub brokers in the market 4.conducting enquiries and audits of stock exchange
What are the importance of purchasing and function?
what is the importance of purchasing
Why sub-prime crisis is called as Sub-prime?
It is called "sub-rime" because the holding of sub-prime (low credit quality) debt precipitated the crisis.
Explain the contributions of purchasing function to profitability and efficiency of an enterprise?
explain the functions of the purchasing department
How purchasing works with other functions and firms do?
call 9986021040 or 6093332290
What is the relationship between purchasing functions and marketing department?
The answer is that marketing and purchasing both uses money. and etc. Such as if i buy an outfit im purchasing something and the marketing department would get benefits.
How does the purchasing function interact with other functions of the organization?
It saves money (expenditures).
What are the sub units of DNA and what are their functions?
Proteins provide building blocks for the structural components of organisms.
Are methods also known as sub programs or functions?
yes,both are same...methods are also known as functions,we call differently in different programing language
What do the sub dials on my Chisel Watch do?
The sub dials on your Chisel Watch typically serve various functions, such as displaying additional time zones, tracking elapsed time for events (chronograph), or showing the date. Each sub dial may represent a different feature, depending on the specific model of your watch. To fully understand their functions, refer to the watch's manual for detailed explanations of each sub dial's purpose.
What business functions are undertaken by electrical contracting firms?
marketing, estimating, planning, scheduling, purchasing, accounting, and training
What business functions are undertaken by masonry contracting companies?
marketing, estimating, planning, scheduling, purchasing, accounting, and training.
The pegcom commander intends to form a joint command with similar functions?
commander will establish a sub-unified cmd
What are the top features to consider when purchasing a built-in double electric oven?
When purchasing a built-in double electric oven, consider the size, cooking functions, energy efficiency, ease of cleaning, and brand reputation.
What are the eight business functions?
general management purchasing production marketing public relations human resources administration financial
