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 ?
Of the respondents surveyed, 15.6 percent reported purchasing beer or malt beverages at a c-store in the past month, and those consumers in the 25- to 34-year-old group were most likely to make this purchase (23.6 percent), while shoppers aged 55 or older were unlikely to do so, with only 5.6 percent buying beer at a c-store in the past month.
One thing electricity purchasing requires is flexibility, for the ESCO market is in flux, along with the energy market in general.
The focus for WAICU is on reducing purchasing costs.
* Purchasing managers must accept responsibility for purchase orders being correct and complete.
Having worked for the public sector for 35 years, Jackson says she's found that micro purchases of $2,500 or less are generally routed through the purchasing card.
The Purchasing Group acquired their First Western shares between August 1997 and the end of February 1998, with the largest concentration of shares purchased in October 1997.
Scalability: Avoid purchasing a "maxed-out" solution.
Facilities have to compare the prices being offered with their own historical purchasing experience and go for the best deal--both in price and product quality--whatever the vendor arrangements might be.
Gateway recognizes these demands, and unravels problems by offering customers simple solutions in the selecting, bidding, approving and purchasing chain.
The final purchase agreement has the foreign parent purchasing target's intangibles, such as trademarks and patents, leaving the U.S.
During the late 1860s and 1870s, members of the nascent Grange movement attempted to gain further power in their consumer transactions by forming purchasing cooperatives.
Now there is growing pressure from nonprofit groups, student alliances and green businesses to persuade large buyers to support environmentally preferable purchasing (EPP).

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