Things Every Person in Purchasing Need to Know

In common business language, the purchasing department is the section of a company or establishment that deals with the acquisition of services and goods required by the company. Also, it is responsible in making sure that the Board or higher members of a company receive the most excellent value for every dollars spent.

Aside from purchasing what the company needs, the purchasing department is sometimes also responsible for mailroom, central stores, print shops and reception services. The purchases made by the department must be of the right quantity, quality and price. Also, the supplies or materials purchased must come from the right source.

The Fundamentals for Requests

When it comes to understanding how the purchasing department procures the need materials, supplies and/or services, it is helpful to know the common requests required before purchases are made.

Firstly, there is the RFP or Request for Proposal. The Request for Proposal is basically a document that is issued to the prospects or bidders. These bidders are generally based on a specific scope of work. After careful study of bidders, the Request for Proposal is then awarded to the one who has the most beneficial and approachable proposal.

The Request for Information is another kind of document. However, it is sent to vendors in order for the department to acquire necessary information. Such information would normally include the products and/or services the vendor offers. Also, it is used to obtain the certain qualifications and terms of the vendor.

Lastly, the Request of Quotation is a document that is issued to bidders to help the department acquire the necessary quotations, or price margins, for services and products. The RFQ is awarded to the bidder who has the lowest compliancy.

The Beginning of the Procurement Process

The process of procurement normally starts with the purchase requisition, the specifications of the product, scope of work for the statement and the list of recommended sources. The information is then submitted to the purchasing department where they develop the necessary Request for Proposal and other necessary attachments.

The Importance of the Requests

The requests, especially the Request for Proposal, are not necessarily required for single purchases or service installation. However, there are certain situations wherein the requests are required.

One example would be the purchasing of specialized equipments, custodial services and consultant services. One thing to remember though is that the Request for Proposal and others are generally required when the products or services needed and the terms or conditions of the products or services are not entirely established in detail on an attached purchased order.

Awarding of the Proposal

There are certain criteria that the Purchase Department needs to uphold in order to maintain quality and quantity of purchases. As such, it is important for the bidder to have a responsible and responsive offer. The bidder must have business integrity and organization capabilities as well.

Also, the bidder must have an offer that conforms to the issued Request for Proposal. This would ensure a quality in the performance of services or products purchased.

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