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Purchasing

Purchasing. Three requirements. Sound set of Specifications Effective buying methods Qualified and Honest purveyor. Specifications. The exact description Size, quality, weight, count These should be made clear to the purveyor. Pars.

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Purchasing

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  1. Purchasing

  2. Three requirements • Sound set of Specifications • Effective buying methods • Qualified and Honest purveyor

  3. Specifications • The exact description • Size, quality, weight, count • These should be made clear to the purveyor

  4. Pars • Predetermined levels needed to meet demands for a particular period of time • Should be updated frequently • Par levels are set on previous usage, sales forecasting, product shelf life, and common sense

  5. Pars Prevent • Panic purchasing- which is usually at a higher price • Selling out of an item • Product spoilage

  6. Dealing with purveyors • Purveyors sell for a living, do not try to outwit them at their own game • Long term relationships and maintaining open communication is key!

  7. Some requirements • Product allegiance- when you agree to buy a certain amount, buy it • Timely ordering- depends on each company • Efficient receiving- do not hold them up for unreasonable amounts of time • Proper handling of invoices

  8. Build a solid business relationship • Be firm on your specs and standard of communication • Proper checking, counting, and weighing of products will let the company know you are serious about the quality

  9. Receiving • Someone will only respect what YOU inspect • You will gain a reputation if you can be beaten at the back door

  10. Types of receiving • Simple- verify # and type of goods • Complex- verify #, weight, specs, what was ordered • Blind- verify after recording what was received • (don’t look at invoice while checking)

  11. Tools and Techniques • Regular receiving hours • Trained employees • Spec file • Purveyor bid sheet • Invoice stamp

  12. Discrepancies • Credit requested: credit memo • Credit: take off invoice (call purveyor) • After acceptance: pickup requested

  13. Bid sheet • Daily, weekly, monthly price comparison chart used to determine the least expensive prices

  14. Set Standards • Make your job easier! • Have purveyors fax price sheets same time every week • Have purveyors fill out YOUR bid sheets

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