Understanding Scientific Purchasing Principles for Effective Procurement

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Scientific Purchasing, also known as Procurement, involves buying materials efficiently by focusing on quality, quantity, price, place, and time considerations. This process ensures optimal stocking levels, timely procurement, and cost-effective sourcing to meet organizational needs. By adhering to principles like obtaining the right quality, quantity, price, place, and time, businesses can streamline their purchasing operations for improved outcomes.


Uploaded on May 12, 2024 | 0 Views


Understanding Scientific Purchasing Principles for Effective Procurement

PowerPoint presentation about 'Understanding Scientific Purchasing Principles for Effective Procurement'. This presentation describes the topic on Scientific Purchasing, also known as Procurement, involves buying materials efficiently by focusing on quality, quantity, price, place, and time considerations. This process ensures optimal stocking levels, timely procurement, and cost-effective sourcing to meet organizational needs. By adhering to principles like obtaining the right quality, quantity, price, place, and time, businesses can streamline their purchasing operations for improved outcomes.. Download this presentation absolutely free.

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  1. Welcome to all for the PSK Online lecture Chapter 3 Scientific Purchasing By Dr. Dhiraj Ovhal HOD of Commerce

  2. Q.5 Scientific Purchasing Meaning:- Purchasing means buying the materials. The term "purchasing" simply describes the process of buying but in a broader sense, the term involves determining the need, selecting the supplier, arriving at proper price, terms, and conditions, issuing the contract or order and following up to ensure proper delivery Importance of Purchasing. Definition Scientific purchasing means To purchase Right material at right time at right source from right quality with right terms and conditions Principles or Objectives or "7 R"S

  3. Q.5 Scientific Purchasing ? Right quality Right quantity Right Price Right Place Q2 P2 T2 S Right Time Right Transport Right Source

  4. 1. Right quality:- Procurement of stocks of proper quality and defect free It should not be inferior quality It should not be best quality

  5. 2. Right quantity :- Procurement of stocks of proper quantity and needed volume It should not be understocking It should not be overstocking It should be optimum stocking as per requirements

  6. 3 Right Price:- Procurement of stocks at the best price with bargaining. Right Time: Procurement of stocks well in time. Always prefer low price so that provide products at reasonable price to the customers and earn profit also.

  7. 4. Right Place :- Procurement at the required place so that there is no delay in the production schedule for want of materials. Right place also save the money and time to reach raw materials at factory for the production.

  8. 5. Right Time :- Procurement of stocks well in time. Time indicates buying raw materials at correct time so that save money It is most suitable for the agricultural Industry. For example:- Alphanso Mangoes

  9. 6. Right Transport and Communication :- All means of transport (road, rails, rivers, canals, air, sea) that people uses to do trade and all means of symbolic or verbal communication (newspaper, mail, telephone, television, etc.) uses to make contact and share information, right transport and communication is important for smooth flow of purchasing and supply of raw-material for continuous production

  10. 7. Right Source :- To select right supplier who provides raw material for the production Timely supply of goods of the right quality and the right quantity from right suppliers. To check the capacity of supplier at least have capacity to provide Inventory for long time such as 5 years. Vendor development programme

  11. Q.5 Scientific Purchasing ? Right quality Right quantity Right Price Right Place Q2 P2 T2 S Right Time Right Transport Right Source

  12. Thank You

  13. Attendance Link https://forms.gle/Xqvykv5vfEi1zpyF7 (Mention date at last point)

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