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Procurement & Inventory Management

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21 views5 pages

Procurement & Inventory Management

Uploaded by

tansuhbless
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PROCUREMENT &

INVENTORY
MANAGEMENT
FUNCTIONS OF
PURCHASING
Determine Items to Purchase
• The purchasing office will be responsible for buying items that the
organisation needs.
• There are two main types of items that will be purchased:
(a) Items that the business purchases to keep (Capital items)
(b) Items that the business buys to resell (stocks/inventory)
• It is the job of the buying office to buy in stock, items that the
customers will purchase and to buy them at a price that enables the
business to make a profit.
Relationships with other
Departments
• Sales- where goods are bought to be resold, there needs to be a very
close communication between purchasing and sales to make sure the
right goods are ordered. The sales department will inform purchasing
about what goods are selling well.
• Accounts-purchases made need to be recorded in the purchases day
book and purchase ledger. Order forms made out by purchasing
should be passed on to accounts for payment.
• Production-in a manufacturing company, purchasing is responsible for
buying the raw materials and components, as well as assets such as
machinery.
• Warehouse and stores-

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