Smart Project on Business Communication

So, we’ve already known the overview of what the purchasing department of an organization is responsible for, from the previous slide. Where we have two main factors which include Q-uality of goods/services and the T-iming of deliveries of those goods.

Now, to narrow that, we should get into the real duties of purchasing. Among those duties are…… (slide 15)

Next…

Alright, before we proceed to the cycle of purchasing, I would like to ask you guys, if you have any ideas of the functional areas that the purchasing department generally interfaces…  (clues: O-A-D-R-S)

O stands for Operations.  

(constitute main source of requests for purchased materials and close cooperation between units and the purchasing department if 2Qs and delivery goals are to be met)

A stands for Accounting.

(of course, this dep’t is related as to the handling of payments and records of inventory)

D stands for Design and engineering

(from the term itself, it suggests that both are responsible for the materials improvements, new products and etc. and people in it are highly obligated to communicate those to our purchasing dep’t whether those changes can reduce the cost and etc.)

R stands for Receiving

(people in this dept’ are called to be the watchdogs of the incoming shipments. they check for the 2Q and timing objectives and later notify any information to the purchasing (late deliveries), accounting (payments upon receiving goods) whether that current info must be apprised on continuing vendor evaluation)

and S, stands for suppliers (of course, these people are closely related to the purchasing. here, communications are made very often)

Now, we can start with the cycle… (slide 16)

(first things first) we should begin with a request.. this requisition must include ….

1. a description of the desired material (item)
2. the 2Qs necessary
3. delivery dates

(second to that) we must find and select a supplier…… As a purchasing

dep’t, we must be able to identify our suppliers who have the capability of supplying goods we want. we can use vendor ratings to refer/help us choosing the best vendors.

        (third) of course, we should place the order with the vendor. We should negotiate the price, fit those price with the goods we purchase and ask for the operating assistance in negotiating the orders (high volume usually covered with blanket purchase orders which usually be handled on annual negotiation basis not on an individual basis)