Questions On Traditional Purchasing Process

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XIX. Traditional Purchasing Process
XIX.1 Objectives
Purchasing is the process of obtaining the goods and services required for a particular project. The major tasks and responsibilities of a person undertaking purchasing are to establish a flow of materials for the firms, being in constant touch with the suppliers to know the status of delivery and helping in making that required good or service on time, with sufficient buffer. Procurement can be said to be a subset of purchasing function that majorly involves defining the specifications of the materials that are required, scouting the market for such materials and making a selection from the available options of products and their suppliers. It also includes negotiating with the suppliers to determine the price and finalizing the purchase. The objectives of procurement and purchasing are same, as follows:
1. Obtaining the right quantity and quality
2. Obtaining the required goods or service at the minimum possible cost.
3. Obtaining delivery from the supplier in the best possible time, at the best possible terms regarding service
4. Nurturing the relationships with the existing suppliers and new suppliers to ensure that they provide priority and best quality of service to you.
XIX.2 General purchasing cycle The purchasing process for a construction firm usually involves the following steps:
1. Receiving purchase requests from relevant departments
2. Analyzing those requests to see whether it warrants a new purchase
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