logging in or signing up PURCHASING MANAGEMENT jayashree2591 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 407 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: April 25, 2012 This Presentation is Public Favorites: 3 Presentation Description about purchase management Comments Posting comment... Premium member Presentation Transcript PURCHASING MANAGEMENT: OBJECTIVES PRINCIPLES IMPORTANCE PROCEDURE, METHODS AND POLICIES PURCHASING MANAGEMENTINTRODUCTION: Purchase is the procurement of goods or services from some external sources . “ Purchasing is the procurement of the materials, supplies, machines, tools and operation of a manufacturing plant.” INTRODUCTIONOBJECTIVES: OBJECTIVES To avail the materials, supplies and equipment at the minimum possible costs. To ensure the continuous flow of production. To increase the assest turnover. To develop the alternate sources of supply. To establish and maintain the good relations with the suppliers. To achieve maximum integration with other departments. To train and develop the personnel. Efficient record keeping and management reporting.PRINCIPLES: PRINCIPLES PRINCIPLES RIGHT SOURCE RIGHT QUALITY RIGHT QUANTITY RIGHT PRICE RIGHT TIMEIMPORTANCE: Efficient Administration. Quality of a final product. Delivery on time. Increase in Profitability. Optimum utilisation of capital. IMPORTANCEPROCEDURE: Receipt of purchase requisition. Potential sources of supply. Issue of letters inviting quotations. Receipt and analysis of Quotations. Selection of Vendor. Purchase order. Follow-up and delivery. Analysis of Receiving reports. Scrunity and approval of invoices. PROCEDUREMETHODS: 1. PURCHASING BY REQUIREMENTS . ADVANTAGES: 1. INVENTORY CARRYING COST LESS. 2. LESS STORAGE SPACE. 3. WORKING CAPITAL IS LESS. DIS-ADVANTAGES: 1. HIGHER DISTRIBUTION COST. 2. INABILITY TO MEET SUDDEN DEMAND. 3. IT CANNOT ENJOY THE ADVANTAGE OF BARGAINING. METHODS2. PURCHASING FOR SPECIFIC PERIOD: ADVANTAGES: 1. PRODUCTION CAN BE STARTED AS SOON AS THE ORDER IS RECEIVED. 2. LESS WORKING SPACE AND STORAGE SPACE. 3. COST ANALYSIS IS EASIER. DIS-ADVANTAGES: 1. IT LEADS TO DEPENDENCE ON A SINGLE SOURCE. 2. PURCHASING FOR SPECIFIC PERIOD3. MARKET PURCHASING: ADVANTAGES: 1.PROCUREMENT OF MATERIAL AT LOW PRICE AS WELL AS LOW COST OF PRODUCTION. 2. LARGE QUANTITIES PURCHASED AT ONE, OVERHEAD EXPENSES ARE QUITE LESS. DISADVANTAGES: 1. HIGH INVENTORY CARRYING CHARGES. 2. LARGE STORAGE SPACE EQUIPMENTS. 3. LOCKSUP FUNDS OF COMPANY. 4. ERROR IN JUDGEMENT OF MARKET CAUSE HEAVY LOSS. 3. MARKET PURCHASING4. SPECULATIVE PURCHASING: ADVANTAGES: 1. POSSIBILITY OF LARGE PROFITS. 2. LESS OVERHEAD EXPENSES. DIS-ADVANTAGES: 1. DANGER OF LARGE LOSSES. 2. LARGE INVESTMENT IN INVENTORIES AND HEAVY CARRYING COST. 3. CHANCES OF DETERIORATION AND SPOILAGE OF MATERIALS. 4. SPECULATIVE PURCHASING5.CONTRACT PURCHASING: ADVANTAGES: 1. AVOIDS NECESSITY OF LARGE STOCK. 2. PURCHASE NOT AFFECTED BY MARKET FLUCTUATIONS. 3. TIME REQUIRED FOR CALLING QUOTATIONS IS SAVED. 4. GUARANTEE OF SUPPLY OF MATERIALS. DIS-ADVANTAGES: 1. SUPPLY MAY NOT BE REGULAR, WHICH MAY CAUSE DELAY IN PRODUCTION. 5.CONTRACT PURCHASING6. GROUP PURCHASING: ADVANTAGES: 1. CLERICAL WORK IS MINIMIZED. 2. DELIVERY, OVERHAED AND PACKAGING CHARGES ARE REDUCED. 3. SINCE VALUE OF EACH ORDER IS MORE THE SUPPLIER MAY OFFER THE MATERIAL AT CHEAPER RATE. DIS-ADVANTAGES: 1.LONG TERM COMMITMENT. 2. SOMEONE MAY TAKE THE TIME AND ENERGY TO SPEARHEAD. 6. GROUP PURCHASINGPOLICIES: Ancillary development. Make or buy. Speculative buying. Vendor rating. Ethics in purchasing. Reciprocity. Purchasing for employees. Gifts. Value analysis. POLICIES You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.