Purchasing Process

[Name of the institute]Purchasing Process

Introduction

The topic chosen for the research is purchasing processes. The reason for choosing purchasing process is that it is the most important part of the business. It is essential to know all the purchasing processes, and purchasing behavior of the customers. Since purchasing processes tends to have a direct effect on the operations of a business because it relates directly to the profitability factor of the organization. Plus it is also important to decipher the purchasing process so that the influential forces can be identified which plays an important role in the whole process. Purchasing process tends to be linked to the way an organization seems to go about its business since customer's behavior tends to be the driving force in relation to any business. Moreover, Purchasing process is also important to decipher in order to increase the sales by capitalizing on the factors which tends to catch the eye of the customers and eradicate those factors which tends to hamper the progress or growth of the organization. Purchasing process tends to play a key role in the whole dynamics of the Supply Chain Management. Thus, in order to develop a sound understanding of the subject the following questions needs to be answered.

How important is to know the purchasing processes?

How consumers behave according to the purchasing process?

What type of purchasing processes is there?

Literature Review

While conducting any research it is imperative to develop immense knowledge and information about that topic. To get this information literature review plays vital part. Literature review gives a researcher a deep insight of the topic. To get the understanding of the topic of purchasing process this research paper provides a detailed literature about the topic.

About Purchasing Process

Purchasing is charged with the task of maintaining adequate stocks of raw materials, components or finished goods, and placing orders to top up stocks as necessary. This involves seeking out and evaluating suppliers in terms of the quality of their offerings, reliability, delivery times and after-sales service, as well as prices. For standard commodities, industrial buyers will generally buy largely on price, seeking quotations or tenders from suppliers. The buyer can choose to place large orders with just one or two suppliers to secure bulk buying price discounts or he or she may choose to spread orders among several suppliers to diversify supplies and avoid the risk of disruption to production if a single supplier defaults. Finally, industrial buyers need to keep up to date with materials and product prices and new materials becoming available in order to provide intelligence to production and marketing colleagues. A business or organization may buy goods or services either to resell to customers or for its own use. When choosing suppliers and merchandise, you need to consider price, quality, availability, reliability, and technical support. The goal of purchasing is to obtain the highest quality goods and services at the lowest possible cost to your business. In order to accomplish this successfully, an organization needs to keep abreast of changes affecting ...