Admin Table of Contents
- 1 What are the five right objectives of purchasing?
- 2 What is meant by the right quality and right quantity at the right time and at the right price?
- 3 What is right quantity?
- 4 What can be defined as having the right service at the right place and time for a right price and in the right condition?
- 5 Which is the right way to do procurement?
- 6 Why is the contract for delivery of goods important?
What are the five right objectives of purchasing?
The five rights of procurement
- The ‘right quality’ Obtaining goods which are of a satisfactory quality as well as fit-for-purpose (suited to internal and external customer needs):
- The ‘right quantity’
- The ‘right place’
- The ‘right time’
- The ‘right price’
What is meant by the right quality and right quantity at the right time and at the right price?
Purchasing is defined as “purchasing materials and items of the right specifications and quality, at the right time, in the right quantity, from the right source and at the right price”.
What is the right price in procurement?
A price that seem fair from value point of view given the goods or services they are purchasing. From a competition point of view, the right price enables the buyer to compete more effectively in their own market.
What is right quantity?
The right quantity is the quantity that may be purchased at a time with the minimum total cost and which obviates shortage of materials. Ensuring and maintaining a regular flow of materials for carrying the production activity is the vital aim of any purchase organisation.
What can be defined as having the right service at the right place and time for a right price and in the right condition?
BestLogisticsGuide.com says the following regarding the definition of logistics: “[It] can be defined as having the right type of product or service at the right place, at the right time, for a right price and in the right condition.”
Why is securing delivery at the right time important?
Securing delivery of goods at the right time sees to it that 1) goods are not late, since this would result into production delays, or 2) goods are not too early in which case the organization would incur the cost of holding inventory.
Which is the right way to do procurement?
The “Right Price”: Securing all of the above at a price which is reasonable, fair, competitive and affordable. Ideally, minimising procurement costs in order to maximise profit, by: Price analysis. Supplier cost analysis. Competitive pricing and negotiation. Suppliers will be free to charge what they like, without checking.
Why is the contract for delivery of goods important?
The contract for delivery of goods is a crucial part of a contract between a buyer and seller as it ensures that everything is received in a timely fashion.3 min read The contract for delivery of goods is a very important part of a contract between a buyer and seller.
What should be included in a delivery contract?
Including specific clauses in your contract regarding the delivery of goods and services is crucial for a solid sale. This type of contract will help protect the interests of all parties in the agreement.