Question

Discuss the functions of purchasing department in an industry. explain some methods of purchasing commonly adopted in an industrial purchasing. why should the purchasing documents be legally sound? lecture notes

Answer 1

Phase 1: Recognition of a Problem:
The purchasing/buying process begins when someone in the company recognises a problem or need that can be met by acquiring goods or services.

The common events that lead to this phase could be:

i. The company decides to develop a new product and needs new equipment and materials to produce this product.

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ii. It decides to diversify or expand and hence requires a multitude of new suppliers.

iii. Purchasing Manager assesses an opportunity to obtain lower prices or better quality.

iv. A machine breaks down and requires replacement or new parts.

v. Purchased materials turn out to be unsatisfactory and the company searches for another supplier.

Early emolument in the new task/problem recognition phase offers the marketer an advantage over competitive suppliers

Answer 2

Explanation:

Discuss the functions of purchasing department in an industry. explain some methods of purchasing commonly adopted in an industrial purchasing. why should the purchasing documents be legally sound? lecture notes