purchasing


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Related to purchasing: Purchasing power parity

Buy

To take ownership of some asset in exchange for some monetary remuneration. Buying may take any of several forms. In a cash purchase, the buyer gives cash or a cash equivalent immediately in exchange for the asset. In a credit sale, the buyer takes ownership immediately in exchange for future payment, often with interest. An example of buying is a simple transaction involving widgets. If the buyer is willing to pay $2 per widget and the seller wishes to sell 100 widgets, then the seller gives to the buyer 100 widgets and, in their place, receives $200. See also: Sale.

purchasing

the business function which is involved in procuring raw materials, components, finished goods and capital equipment, ordering and acquiring supplies of these items at competitive prices. Purchasing is charged with the task of maintaining adequate STOCKS of raw materials, components or finished goods, and placing orders to top up stocks as necessary. This involves seeking out and evaluating suppliers in terms of the quality of their offerings, reliability, delivery times and after-sales service, as well as prices. For standard commodities, industrial buyers will generally buy largely on price, seeking quotations or tenders from suppliers. The buyer can choose to place large orders with just one or two suppliers to secure BULK-BUYING price discounts or he or she may choose to spread orders among several suppliers to diversify supplies and avoid the risk of disruption to production if a single supplier defaults. Finally, industrial buyers need to keep up to date with materials and product prices and new materials becoming available in order to provide intelligence to production and marketing colleagues. See BUYING PROCESS, BUYING CENTRE, MATERIALS MANAGEMENT, JUST IN TIME (JIT) SYSTEM, APPROVED SUPPLIER, NATIONAL ACCOUNT, DECENTRALIZED PURCHASING, SOURCING. See also FOUR O'S OF PURCHASING.
References in periodicals archive ?
The risk of doing so, of course, is that someone in purchasing could approve an invoice and/or initiate payment for a purchase that he or she originated and received.
Through its program, Visa has been working with groups like the African American Chamber of Commerce and individuals like Jackson to get the word out about its purchasing card.
If Purchasing and Payable folks are so dragged down by transactions, and not doing strategic work, somebody should be looking at it," says Windley, who is also on the faculty of the National Association of Education Buyers (NAEB) (www.
Although purchase orders are now prepared electronically--with forms readily accessible from university servers--how much of the selection, bidding, approval and purchasing chain are still done by separate people on separate computers, exchanged via e-mail, printed and faxed to the vendor?
Now there is growing pressure from nonprofit groups, student alliances and green businesses to persuade large buyers to support environmentally preferable purchasing (EPP).
Online purchasing (e-procurement) sites offer potential advantages over traditional purchasing methods.
The report also seriously misrepresented warnings from supervisors about the purchasing procedures,Bowen wrote.
When purchasing a firearm, each purchaser must complete the ATF Firearms Transaction Record, which provides the information licensees use to verify that an individual can legally buy a firearm and enables law enforcement officers to track firearm purchases.
First she fills out a detailed purchase requisition in triplicate and gets the formed signed by the appropriate manager; then the order is submitted to the company's purchasing departments.
At the most basic level, procurement card programs replace the various steps in the traditional purchasing process (a requisition, followed by a purchase order, followed by an invoice, followed by approval of the invoice, followed by a payment to the vendor) with an authorization to an employee to use a charge card to procure necessary goods and services.
7 percent of respondents reported that the country's political and social turmoil has had no effect on their purchasing decisions with Mexican suppliers.
The high loan amounts relative to housing values in low- and moderateincome neighborhoods, particularly given the prevalence of home improvement loans, may reflect a lack of wealth among borrowers purchasing homes in these neighborhoods and thus relatively smaller downpayments on home purchase loans.