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    The document discusses the importance and functions of purchasing. It defines purchasing as the first phase of materials management and procurement of goods and services from external agencies. The key functions of purchasing are to obtain reasonably priced materials of the right quality, quantity, time and source. Purchasing is important because it provides necessary materials for production, can achieve cost savings equivalent to increased turnover, and manages over 50% of company expenditures.

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    BRM.063 (1STMID)

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    The document discusses the importance and functions of purchasing. It defines purchasing as the first phase of materials management and procurement of goods and services from external agencies. The key functions of purchasing are to obtain reasonably priced materials of the right quality, quantity, time and source. Purchasing is important because it provides necessary materials for production, can achieve cost savings equivalent to increased turnover, and manages over 50% of company expenditures.

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    9 views5 pages

    Kakinada: Jawaharlal Nehru Technological University

    Uploaded by

    vinay valina
    The document discusses the importance and functions of purchasing. It defines purchasing as the first phase of materials management and procurement of goods and services from external agencies. The key functions of purchasing are to obtain reasonably priced materials of the right quality, quantity, time and source. Purchasing is important because it provides necessary materials for production, can achieve cost savings equivalent to increased turnover, and manages over 50% of company expenditures.

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    JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

    KAKINADA

    SCHOOL OF MANAGEMENT STUDIES


    OPERATIONS MANAGEMENT
    IMPORTANCE AND FUNCTIONS OF PURCHASING
    Presented by
    V VINAY CHANDRA
    19021E0065
    DEFINITION
    • Purchasing is the first phase of materials management. Purchasing
    means procurement of goods and services from external agencies
    • The objective of purchasing department is to arrange the supply of
    materials and services required by the organisation to produce the
    desired product
    FUNCTIONS OF PURCHASING

    • To pay reasonably low prices for the best values obtainable,


    negotiating and executing all company commitments.
    • To develop satisfactory sources of supply and maintain good
    relations with them.
    • The main function of purchasing is buying materials of right
    quality, in the right quantity, at the right time, at the right price,
    and from the right source.
    IMPORTANCE OF PURCHASING
    • Purchasing function provides materials to the factory without which
    wheels of machines cannot move.
    • A one percent saving in materials cost is equivalent to ten percent
    increase in turnover. Efficient purchasing can achieve this.
    • Purchasing manager is the custodian of his firms purse as he spends
    more than 50% of his company’s earnings on purchases.
    REFERENCE
    yourarticlelibrary.com

    THANK YOU

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