This is a function within the procurement process that is largely transactional

and associated with how goods and services are ordered is called _____.

The period was characterized by firms concentrating on how best to efficiently produce goods without much thought on how to sell or market those goods that were produced. The focus was on how to produce rather than how to solve the problem of selling the goods or providing some level of customer service.

The period developed a thorough understanding of the market place to ensure that the firm was producing goods and services required and desired by the customer.

The period was characterized by firms’ main objective to create sales for existing products; the need for buyers to be stimulated to make purchases and significant efforts put into increasing sales of the company’s products.

Functions of Purchasing:

This involves keeping of financial records in relation to purchasing, store ledger account etc.

Functions of Purchasing:

Buyer and seller set a target and come to an agreement. For example, price per unit, discounts, period of contract, quality and unit to be supplied.

Functions of Purchasing:

Purchasing manager must select the most favorable sources of supply by considering factors such as financial stability, distance from the business to suppliers, whether suppliers have enough transporting facilities and also experience of suppliers in the market.

Functions of Purchasing:

Concerned with making sure that supplies are delivered on time, ensuring that there is no stock out.

Functions of Purchasing:

This is concerned with changing of materials into economic value goods for example buying in bulk and packaging in small quantity for retaining and distribution of the repackaging goods.

Functions of Purchasing:

This is concerned with purchasing the required equipment, materials and services needed by the organization.

Functions of Purchasing:

This is in charge with the management of human resources and should maintain, sound employees or employee relations.

Functions of Purchasing:

This is entered after the negotiation process where the buyer and seller argue on selling price per unit quantity to be supplied per each order time of supplying quality goods.

Relationship of Purchasing with other Functional Department:

The purchasing department will depend on the budget, cost data

and price adjustments prepared by the _____ for use in negotiation with suppliers.

Relationship of Purchasing with other Functional Department:

The purchasing department receives list of materials required showing how much is required, when and at what time and location.

Relationship of Purchasing with other Functional Department:

The purchasing department together with _____ evaluates cheaper alternative materials and creates a library of books, journals and standards specifications for joint use.

The following are the typical purchasing process, except:

When describing the role and position of the purchasing and supply function in industrial companies, this model is taken as a term of reference.

These activities are related to receiving, storing and disseminating inputs to the production process, such as inbound transportation, incoming inspection, materials handling, warehousing, inventory control and reverse logistics.

Activities associated with transforming inputs into the final product, such as machining, assembly, packaging, equipment maintenance, testing, printing and facility operations.

These are activities associated with collecting, storing and physically distributing the final product to customers, such as finished goods warehousing, materials handling, outbound transportation, order processing and scheduling.

These activities relate to advertising, promotion, sales, distribution channel selection, the management of channel relations and pricing.

Activities associated with providing services to customers to enhance or maintain the value of the product, such as installation, repair and maintenance, training, parts supply and product adjustment.

Relates to the function of purchasing inputs used in the firm’s value chain. These may include raw materials, supplies and other consumable items as well as assets such as machinery, laboratory equipment, office equipment and buildings.

Relates to the use of technology that combines a number of different sub-technologies involving different scientific disciplines, be it know-how, procedures or technology embodied in processes, systems or product designs.

These are all the activities directed at recruiting, hiring, training, developing and compensation of all types of personnel on the company’s payroll, active in both primary and support activities.

The whole company is the customer of these activities since it supports the entire set of company processes. Examples include management, planning, finance, accounting, legal, etc.

These are activities which are directed at the physical transformation and handling of the final products that the company delivers to its customers.

These are activities which are directed at supporting one of the primary activities as well as supporting the whole primary process in the value chain.

This term relates to all activities, both inside and outside the company, that create value for the company’s final customers.

This term reflects the rewards for the risks incurred by the company.

Products are manufactured and stocked, and customers are serviced from an end product inventory. Production is on dedicated machinery, often in large batches.

Products are manufactured from raw materials or the purchased components inventory after a customer order has been received and accepted. This is common in situations with very large or customer-specific product ranges or bulk products that are very expensive to stock.

All manufacturing activities from design to assembly and even procurement of the required materials are related to a specific customer order. Production is usually on multipurpose machinery, requiring highly skilled operators.

Procurement of all materials and products that are used for manufacturing a company’s end products.

Procurement of all materials, components and services that are used to support the company’s infrastructure and back-office activities.

Relates to the total costs that the company will incur over the lifetime of the product that is purchased.

Relates to all activities necessary to manage supplier relationships in such a way that their activities are aligned with the company’s overall business strategies and interests.

A group of products which can be substituted for one another by a consumer. These products often share the same demand, supplier or raw materials.

This term is defined as a firm with whom your company has an on-going buyer–seller relationship, involving a commitment over an extended period, a mutual sharing of information and a sharing of risks and rewards resulting from the relationship.

This term identifies for a certain category from how many suppliers to buy, what type of relationship to pursue, contract duration, type of contract to negotiate for, and whether to source locally, regionally or globally.

Relates to all activities which involve finding, selecting, contracting and managing the best possible source of supply on a worldwide basis.

These are materials which have undergone no transformation or only minimal transformation, and they serve as the base materials for a production process.

These are materials which are not absorbed physically in the end product; they are used or consumed during the production process.

These products have already been processed once or more, and they will be processed further at a later stage. They are physically present in the end product.

These are manufactured goods which will not undergo additional physical changes, but which will be incorporated in a system with which there is a functional relationship by joining it with other components.

These encompass all products which are purchased to be sold, after negligible added value, either together with other finished products or manufactured products.

These are the products which are not consumed immediately, but whose purchasing value is depreciated during its economic life-cycle.

These products represent materials which are necessary for keeping the organization running in general, and for the support activities in particular.

These are activities which are executed by third parties (suppliers, contractors, engineering firms), or other business units of the company, on a contract basis.