What are the main principles of purchasing?

Question

Accepted Answer

The main principle of purchasing is to acquire goods and services at the best possible price while ensuring quality and timely delivery.

Cost-effectiveness: Aim to minimize costs while maximizing value. For example, negotiating bulk purchase discounts.
Quality assurance: Ensure that products meet required standards. For instance, sourcing from certified suppliers.
Supplier relationship management: Build strong relationships with suppliers for better terms and reliability.
Market research: Stay informed about market trends and pricing to make informed purchasing decisions.
Timely procurement: Ensure that goods are delivered on time to avoid production delays.

Accepted Answer

> acquire goods or services of the right quality, quantity, time, source, and price to meet organizational needs efficiently and effectively. These are often referred.
>The quality of the purchased goods or services should be suitable for the intended purpose, not necessarily the highest quality parameters available, but the best quality for the specific need and budget. 
>Right Quantity:
This involves determining the optimal order quantity to minimize storage costs and avoid shortages. Formulas like the Economic Order Quantity (EOQ) can help with this. 
>Right Time:
Ensuring materials are available when needed, avoiding delays that disrupt production or operations. Reordering at the right time helps maintain optimal inventory levels according to Scribd. 
>Right Price:
Negotiating the best possible price while considering factors like quality, delivery, and supplier reliability according to parameters.
>By adhering to these principles, organizations can minimize costs, optimize inventory levels, and ensure smooth operations.

Asked in Three D Integrated Solutions Ltd

What are the main principles of purchasing?

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