Concept of Purchasing.

 nature and importance of purchasing:

There are a number of functions of production management. These functions are procurement, purchasing, inventory control, traffic, loading, unloading, storing and so on. Every function plays an important role in production maximization. Among all purchasing is an important function that plays very very important role in production process.

The process of knowing the rules- regulation, terms and cindition of purchase raw material is known as purchasing. In other words we can say that purchasing is an economic function that forecast availability of raw material its terms and conditions and choose one of the best according to safe size of organisation.

Nature of Purchasing:

1. It is an internal function of organisation.

2. It is a continuous function.

3. It is an economic function.

4. It is technical function.

5. It is forecasting based function

6. It compare many rules-regulations, terms and conditions, mode of payment, way of payment and so on.

Importance of Purchasing:

1. It provides regular supply of raw materials to organisation.

2. It provides cent percent feature possessing raw material to organisation.

3. It purchase raw material at minimum price. so, The cost price of product becomes minimum.

4. It saves resource like money, time of organisation.

5. It helps the maximisation of production inside the organisation.

6. It maintain cent percent product feature possessing of organisation.

objective of organisation;

There are many objective of purchasing. these objective are as below;-

1. it ensure regular supply of raw material of organisation.

2. it ensure cent percent feature possessing of raw material to organisation.

3. It ensures the supply of raw material at right time according to need, want of organisation.

4. It ensures the supply of raw material from right source  at right way.

5. It also ensures to payment concern orgaisation at right time. 

6. It find out the alternative source of purchasing raw material.

7. It finds out the new way that raw material is possess by organisation for a long time like 100 years, 200 years and so on.