Materials purchasing

khushal By khushal, 20th Oct 2014 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

All business organizations required material for operate the business. They required supplies of materials from outsiders. Purchasing relates the act of exchanges of goods and services for money.

Materials purchasing

All business organizations required material for operate the business. They required supplies of materials from outsiders. Purchasing relates the act of exchanges of goods and services for money.
Importance of purchasing
The importance of purchasing are as follows
1 Purchasing provides materials to the factory.
2 Purchasing can contribute to import substitution.
3 Purchasing can save foreign exchange.
4 Purchasing increases efficiency of the workers
5 Purchasing increases the earning of the business.
6 Purchasing is the main main factor to operate the business.
7 purchasing increases the turnover of the business.
Selection of suppliers
Selection of supplier is the basic duty of purchasing in this process, purchasing department prepares a list of suppliers. Thereafter the department select the supplier according to its requirement. But, it is essential of the time of selection of suppliers following steps should be taken:
1 The Product should be of good quality.
2 The cost of product should be also low from other suppliers.
3 The past experience with the supplier is good.
4 An advertisement should be published in the news papers for the tenders.
5 Before selection of supplier, it is also noted that the purchasing department consults about the purchases to the trade agencies or not.
After above steps, the purchasing department can select the supplier.

Tags

Business

Meet the author

author avatar khushal
i am working of business department and i am perfect in business

Share this page

moderator Steve Kinsman moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar viewgreen
20th Oct 2014 (#)

Informative article... Thank you for sharing this.

Reply to this comment

author avatar Fern Mc Costigan
21st Oct 2014 (#)

Interesting piece!

Reply to this comment

author avatar khushal
21st Oct 2014 (#)

thanks

Reply to this comment

author avatar tafmona
21st Oct 2014 (#)

very nice post, keep writing

Reply to this comment

author avatar Kingwell
29th Oct 2014 (#)

Good post.

Reply to this comment

Add a comment
Username
Can't login?
Password