OFFICE ADMINISTRATION

ASSIGNMENT

Name of Members:

Name of Grade

Name of Subject: Office Administration

Name of Teacher:
1. Outline the procurement procedure.

(a) Use of Catalogues: Catalogues are used by many companies who supply other
companies to achieve significant sales. A catalogue is a list of items, such as
commodities, that you may purchase from a certain firm. It is divided into sections for
the many types of products available, and each page will contain a picture of the item
listed. Catalogues are extremely useful for purchasing, and the supplier should always
have current catalogues available for use by customers.

(b) Consulting Price Lists: A pricing list merely lists a product's identification number, a
brief title defining the item, the commodity's price and the percentage of discount
offered on a commodity if there is one. A price list makes it easier for the customers
to file orders as it is easy to read and it is also inexpensive for suppliers to update
prices by distributing a new price list rather than printing a new catalogue.

(c) Issuing Tenders: Tenders to potential suppliers may be part of the purchasing
department's responsibilities. Rather than issuing a tender to a specific supplier, it
makes logical to invite potential suppliers to bid for the contract. The conditions are
communicated to suppliers, including when commodities must be delivered, what
quantities are necessary, and what level of quality is expected.

(d) Quotations: When purchasing expensive supplies or looking for frequent supplies, it
is a good idea to request a quotation from a provider beforehand. A quotation is a
seller's offer to supply products and services. The quotation will include the prices
and terms under which the items will be delivered.
(e) Using E-commerce: E-commerce simply means to purchase online, meaning a
supplier is easily founded by searching online. When purchasing online a customer
can see the item picture displayed, fast contact through the use of email, lower cost as
suppliers do not have to pay for a site to display stock and it is easier to access
various suppliers across the world.

(f) System of Measurement: When ordering it is important to be aware of the

measurements used for various commodities. Quantities of liquid would usually be
purchased in litres, and when ordering physical items it would usually be in kilograms
and physical goods can also be measured in centimetres or metres.
2. Explain what the following purchasing terminologies mean and what they stand for.

(a) FOB (Free On Board)- refers to the price paid by the consumer for goods at the point
where they are put onto the final delivery vehicle. In addition to the price of the items,
the customer will have to cover the airline, shipping firm, or road haulier for the final
journey.

(b) CIF (Cost, Insurance and Freight)- is a shipping agreement, which represents the
charges that cover the costs, insurance, and freight of a buyer's order while the cargo
is in transit.

(c) E&OE (Errors and Omissions Excepted)- used to say that a price list, product
description, or another document may contain mistakes or may not include some
details that can be added in later.

(d) COD (Cash on Delivery)- When the products are delivered, they must be paid for
right away, otherwise the carrier may refuse to release them to the buyer.

(e) Ex-works- used for stating that the buyer of goods is responsible for arranging and
paying for them to be transported from the seller's factory and the buyer is also
responsible for paying for the insurance as well.

(f) Discounts- Discounts are reductions in the price of items and are usually offered on a
percentage basis. Cash discounts, trade discounts, bulk or quantity discounts and
loyalty discounts are all discounts to be familiar with.
,3. Explain the factors the influence the purchasing procedure.

(a) Urgency- Instead of going through a detailed process, the purchasing department may
use the first available supplier or one from their database that they know can supply
consistently and swiftly when supplies are needed urgently.

(b) Cost- Purchasing can be an expensive and time-consuming process, but it's worth it
when the supplies are critical to a company's success. If you want to buy a high-
quality service or product, you should expect to pay a higher price.

(c) Durability- It is critical to assess the durability of the shops being ordered when
purchasing supplies, and, how long they will hold it for. Although certain materials
are more expensive, they may be more desirable since they have a longer shelf life.