Conventional accounting records fail to reveal the financial impact of this kind of slow profit-draining inefficiency of asset utilisation. Even for the items which are being purchased on a regular basis, the purchasing section should invite tenders and know full well the market price.
Acquiring new equipment, adding to plant facilities, and increasing sales and promotional efforts are some of the alternative uses of capital that an organisation must consider. Prompt communication to Production and Procurement of changes in the sales forecast permits these functions to modify their schedules as painlessly and economically as possible.
It is the function of purchasing department to work in close coordination and cooperation with other departments of the company. However, procurement and other functions often view common problems differently. These records are essential for making the day to day purchase.
Procurement timing is often the most difficult problem faced when making this translation. Recive and check deliveries of products against delivery note. The procurement operations cut across most departmental lines.
Purchasing Functions Beyond procuring materials and building relationships, purchasing professionals and departments have several other responsibilities.
This may be done because it is in the long-term interest of the organisation not to reduce its labour force. It is because a major function of marketing is satisfy the customers need.
Although chief executives themselves must occasionally resolve the issue, it should normally be resolved by the functional heads within adopted policy guidelines. Daily a number of letters, bills, quotations, notes, challans, railway receipts, parcel, way bills, bills of ladings, goods received notes, lorry receipt, goods receipt transport delivery notesinspection notes have to be dealt with.
Sometimes, increased sales result in decreased profit if they simultaneously require a greater increase in procurement costs. Only when the whole organization is focused on serving the customer optimally integrated effortit employs the marketing concept.
Usually, the alternative offering the greatest income in the long run should be selected, since no organisation has enough capital to satisfy all requirements.
A purchasing department has to fulfill the needs of other departments in the organisation. Role of purchasing department?
In other cases, the reserve stock or the stocks kept in bank can be utilized i. The followings are some of the important functions which are necessary to be performed. Some are of the view that invoices should be checked by the purchase department placed by it whereas other suggests that it should go to the accounting department.
In a nutshell, it is recommended that the description of items for purchase on the part of indenter, purchaser and seller should be quite clear and without ambiguity to promote harmony in an organisation.
This disconnection between function and, department is not always appreciated or understood by top management.
Hence, a cooperative relationship between Procurement and Finance clearly can impact the development of good supplier relations. Clearly, such conflicting functional interests cannot always be resolved easily.The Relationship between Purchasing Department and other Department Essay Relationship between Purchasing Department and other Departments In a firm with a good system of internal control, all purchases of machinery, equipment and materials must go through the Purchasing Department.
What is the relationship between purchasing department and marketing department? The current development of the purchasing function shows remarkable similarities to the development of the. Beyond procuring materials and building relationships, purchasing professionals and departments have several other responsibilities.
This includes identifying new supplier. Free Essay: Relationship The relationship between men and women has always been complicated and sometimes even a really loving relationship cannot survive if.
The purchasing department sends a copy of the purchase order to accounts payable and to the receiving (warehouse) department that. Relationship between Purchasing Department and other Departments In a firm with a good system of internal control, all purchases of machinery, equipment and materials must go through the Purchasing Department.Download