Objective of Purchasing
Objectives of Purchasing
The major objectives of scientific purchasing may be stated as follows:
1. Procurement of required quality and quantity of materials at the best price, not necessarily the lowest price.
2.Procurement of materials which best suit the product and the purposes for which they are intended.
3.Purchasing for time utility by a schedule, sufficiently in advance of the demands of the production department so that the production work shall not suffer due to lack of materials.
4. Buying the quantity, which is neither too much, that involves belonging of the capital, nor too little that holds up the regular supply for production.
5. Improvement of the product with reference to quality and the distribution by means of selection of adequate materials.
6.Maintaining continuity of supply to ensure production schedule at a minimum of investment.
7. Avoidance of duplication of materials, leading to waste of materials and equipment.
8. Maintenance of company’s competitive position in the market by having company’s quality standards in accordance with the demands of the customers.
9. Creation of goodwill for the company through dealing with supplies.
10. Developing fullest cooperation and coordination and maintenance of internal relationship among various departments of the company.
The main task of the purchasing functions is buying for the company by which is meant going into the open market, finding the lowest price at which is standard item is
offered, and selecting a supplier who is ready to offer that item at that price. This task is clerical. Scientific or effective purchasing is something more than buying. It is an execu-
tive job involving cooperation with other functions, e.g.,
production, distribution, finance, sales etc. The purchaser,therefore, does not think solely in terms of buying. Sometimes he think himself or producer, sometimes as financier,
sometimes as sales manager. In all his varied thinking he works out how he can be most helpful to every phase of business.
