Purchase Cycle
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Purchasing cycle comprising of eight steps.
- Recognition of Need : Identifying an item that is officially brought to the attention of purchasing department.
- Description of Requirement:Â Â Purchase requisition should give accurate information for ordering recognised product.
- Selection of Source: Registered suppliers who are approved by the company. Buying from single supplier helps develop long-term relationship and reduces the risk and interruption in the supply. Buying from multiple suppliers may not help in maintaining quality and helps get material at competitive prices.
- Determination of Price and Availability
- Placing the Order
- Order Acknowledgement
- Follow Up and Expediting
- Checking The Invoice and Approval
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