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Technological Institute of the Philippines

PURCHASING
MANAGEMENT
Today's Agenda

1 Knowledge Check 4 Functions of Purchasing

Introduction to Purchasing and


2 Purchasing Department 5 Methods of Purchasing

3 Objective and Principles 6 Question and Answer


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Objective: Understanding Purchasing Management

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Introduction
Procurement Purchasing
Function of the Supply Chain Process ordering and receiving
directly delivers Overall Cost goods, supplies, machines tools
Savings, Quality improvements and services at the right quality,
and Fulfills effective Customer and quantity at the right time, right
Supplier Relationship. cost and right place
Includes purchasing activities Subset of wider procurement
required to order and receive process
goods. This involves:
This involves: Ordering of Goods
Sourcing Activities such as Approval, Creation of purchase
Market research records
Vendor Evaluation Monitoring and Receiving of
Contract Management / Goods
Negotiation
Introduction
Purchasing Management
Department in an organization responsible for the purchasing activities
Decides profitability of the Company

Purchasing Management Department

Ensures that all goods, supplies and inventory needed to operate business
operations are ordered and kept in stock.
Responsible for controlling the cost of the goods ordered, controlling inventory
levels and building strong relationships with suppliers
Objective

Avail materials, supplies and equipment at the minimum possible cost


Ensure continuous flow of production
Development of good and new suppliers
Develop / maintain good relation with existing suppliers
Establish alternate sources of Supply.
Maintain proper and up to date records of all transaction
Participating in development of new material and products
Avoiding Stock-out
Develop Policies and Procedure
Train and develop personnel
Principles of Purchasing

RIGHT RIGHT RIGHT


QUALITY QUANTITY PRICE

RIGHT RIGHT RIGHT


TIME PLACE SOURCE
Question?
Thank you
for your g
Have a
r e a t
ahead.
d a y

participation! -Prof. Jaemee


“The capacity to learn is a
gift; the ability to learn is a
skill; the willingness to learn is
a choice.”
Brian Herbert, author

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