TOPIC; “METHODS OF
PURCHASING “
Reporter ; Mary Grace Aborde
• Methods of Purchasing: There are several methods
that may be utilized to request items or services.
They are: blanket orders; check requests; petty
cash; purchasing credit card; and purchase
requisitions and orders.
• What are the importance of purchasing?
• Hence, more than anybody else in the
organization, they are able to bring information
about new products, materials and processes.
This enables them to- suggest alternatives which
can reduce costs or dependence on imports.
• Keep Petty Cash on Hand
• One of the most common types of purchases are
the small expenditures for office supplies,
stamps and other minor purchases. Many office
managers use petty cash for these expenses
because they are typically small enough to not
warrant a check or special requisition.
• Formalized Purchase Orders
• Your business will want to use purchase orders
for larger procurement or regular deliveries. This
purchasing process creates a formal request and
agreement between you and your supplier
regarding the prices and terms agreed upon for
your purchase. Y
• Save with Bulk
Purchases
• Another popular
purchasing
methodology is to buy
your needed supplies
or goods in large
quantities in order to
realize a discounted
unit price.
• Barter for Goods or
Services
• Not every purchase
procedure requires
cash to obtain goods
and services. Making
like exchanges with
other small
businesses is a great
way to meet your
needs for little or no
monetary investment.
• On-Demand Purchasing and Zero Inventory
• For retailers that prefer to not house inventory, a
zero inventory purchasing process works well.
Items are only purchased when they are needed
and only in the quantities in which they definitely
will be sold.
What are the 4 goals of
purchasing?
• Lower costs. This is by far the primary function
of the purchasing department.
• Reduce risk and ensure the security of supply.
• Manage relationships.
• Improve quality.
• Pursue innovation.
• Leverage technology.
• 1. Purchasing by Requirement:
• This method refers to those goods which are
purchased only when needed and in required
quantity.
• 2. Market Purchasing:
• Market purchasing
refers to buying
goods for taking
advantages of
favourable market
situations.
• 3. Speculative
Purchasing:
• Speculative
purchasing refers to
purchases at lower
prices with a view to
sell them at higher
prices in future.
• 4. Purchasing for
Specific Future
Period:
• This method is used
for the purchase of
those goods which
are regularly required.
• 5 Contract
Purchasing In the
words of Spriegel it is
“the purchasing under
contract, usually
formal, of needed
materials, delivery of
which is frequently
spread over a period
of time.”
• 6. Scheduled
Purchasing:
• 7. Group Purchasing
of Small Items:
• Sometimes a number
of small items are
• Under this method the
required to be
suppliers are supplied
purchased. The
a probable time
prices of these items
schedule for material
are so small that
requirements so that
costs of placing
they are in a position
orders may be more
to arrange these in
than prices.
time.
• 8. Co-operative Purchasing:
• Small industrial units may join to pool their
requirements and then place bulk orders with
dealers.
That’s All Thank You 🙏