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Effective purchasing.

Article Excerpt
[check] This checklist is designed to assist those responsible for purchasing to adopt a more effective strategy. It is not intended that this checklist should itemise the steps in the administration of a purchase order process; rather it is aimed at presenting a proactive approach to purchasing. Whilst directed at those involved in centralised purchasing, the principles apply equally to decentralised buying.

Definition

Most textbooks advocate that purchasing is about buying the right goods, at the right time, at the right price, in the right quantity and of the right quality. Whilst this is indeed a fundamental requirement, effective purchasing has to deliver more than this. Adopting an effective purchasing strategy will turn a reactive buyer into a proactive buyer, one that adds value to the process.

Advantages of effective purchasing

It:

* is proactive and adds value for your organisation

* improves communication with suppliers

* provides better understanding of the marketplace.

Disadvantages of effective purchasing

There are no real disadvantages to effective purchasing, but it must be remembered that time must be invested in: gathering and sorting internal data evaluating suppliers. Action checklist--Your organisation

1. Understand your own organisation

Take time to learn about how your own organisation functions and what is important to...

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