Essay on Why Purchasing Is The First Phase Of Materials Management

1304 Words Nov 1st, 2016 6 Pages
What The Meaning OF Purchasing : Purchasing is the first phase of Materials Management. Purchasing means procurement of goods and services from some external agencies. The object of purchase department is to arrange the supply of materials, spare parts and services or semi-finished goods, required by the organisation to produce the desired product, from some agency or source outside the organisation.
The purchased items should be of specified quality in desired quantity available at the prescribed time at a competitive price. In the words of Alford and Beatty, ”Purchasing is the procuring of materials, supplies, machines, tools and services required for equipment, maintenance, and operation of a manufacturing plant

The elements of the purchasing cycle .
1- Identify and Define The Need :The Needs of purchasing have 3 elements ( 1-Purchase requisition: an internal document completed by a user that informs purchasing of a specific need 2-REcorder Point System : A method used to initiate the purchase of routine items typically, each item has predetermined order point and order qanitiy 3-Statement Of Work/Scope Of Work : Terms and conditions for a purchased service, includes how supplier will be evaluted ) mainly the need arises in the inventory store when it decreases to a certain level. Today we have computer information systems in place to prevent urgent orders being made. MRS = materials requirements planning system is used for info on size, specifics of need and schedules…

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