Purchasing Flashcards

Front

What is the primary responsibility of the purchasing department?

Back

The purchasing department is responsible for sourcing, receiving, storing, and issuing stocks, which could be in the form of food, beverage, supplies, and equipment.

Front

What are the Six Rs of purchasing principles?

Back

Right Quality, Right Quantity, Right Time, Right Source, Right Price, Right Place.

Front

What should be included in a purchase order?

Back

Supplier details, items' description and specifications of the material, quantity ordered, transport and packing charges, delivery date, price, and terms of payment.

Front

What is the purpose of verifying invoices in the purchasing process?

Back

To ensure that orders are accurately executed and to facilitate timely payments to suppliers.

Front

What is the importance of negotiation in purchasing?

Back

Negotiation helps in cost control, quality assurance, and building strong supplier relationships.

Front

What is the purpose of stock taking?

Back

To have an accurate count of stock items, check stock against consumption, and identify discrepancies.

Front

What are the potential consequences of poor quality supplies?

Back

Poor quality can damage the organization's reputation and lead to customer dissatisfaction.

Front

What is the importance of understanding market prices in purchasing?

Back

To ensure that the prices paid to suppliers are competitive and fair.