Purchasing: What are the top 3 things one should know?

Answer 1

Reliability:
You want to avoid stock outs yet have timely delivery of goods and services, mindful of providing addtional time for delays and history of delivery times if available.
Especially with Just in Time organisations, check with shipping staff on recording receipts and duration of quality checks by your company before acceptance.


Bottom line:
What your company margins are, pre-approved vendors and tender process. Quality of goods and services will be price sensitive.
Communicate your choice of purchases before ordering to let you boss know. If anything goes wrong, the stick is on him; if you get fired, at least you have a clean conscience.


Due diligence: Payment terms and conditions, returnable under what event ? consignment ? discounts for early payment ? Bargaining power for extended credit terms ? Quality, delivery, product support issues and turnaround times.

Answer 2

I'd say the 1st is: Vendors: you plan on using for the service or product that is needed by you and your company. 2nd: What type of service they furnsih with the product they sell: Cost of the product you buy, how well the "vendor" makes it and delivers it and service they will give you, compared to the other competitor's.
3rd: Reliability: Will the vendor have it "stocked" and on hand as you call for the product or service needed, and will they be able to deliver their service or product on a timely basis to you, with little or no-down time to you or your company? How well they serve you and your company, with the products they provide.
Remember: "you get what you pay for" saving a penny here and there, could cost you big dollars in the long run, from poor service, products purchased, or your vendor is always "out-of-stock" on the items or service that you need. You suffer with "down-time" trying to find what you need, trying to get the item from another vendor, and your workers become idle, waiting on needed items.

Answer 3

1. Understanding the specification of items to be bought
to avoid wrong purchase.
2. Knowing the best source of purchase in term of price,
best delivery date, and vendor reliability.
3. Payment term.

Answer 4

strategy- are you lookin for the lowest price,best quality, certain defect ratio, cetain brand, etc

relationships- are you lookin for a competitive relationships, or strategic alliances that benefit both parties, are you just lookin to dominate your sources and dont care whose feelings are hurt(the walmart strategy)

your bottom line- what do you have to negotiate for, what would be a good deal for you, what would be a bad deal for you, always have a backup plan or source

Answer 5

Quality
Quantity
Price