Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER IV THE PURCHASING PROCESS OUTLINED In the present chapter the attempt is made to present in outline the various phases of the purchasing process, the fuller discussion of which is developed in the subsequent chapters. In outline the purchasing process may be said to involve the following: 1. Determination of purchase requirements. 2. Determination of current market conditions and tendencies. 3. Determination of the elements essential to securing the fullest competition. 4. Development of specifications, clearly and definitely stating purchase needs. 5. Determining the method of inviting bids best adapted both to the needs of the service and to those of dealers from whom competition must be sought. 6. Determining the form of purchase agreement. 7. Stimulating competition on invitations for bids. 8. Making awards. 9. Follow-up. 10. Inspection. 11. The handling of invoices and securing prompt payment. Each of these will be briefly considered. Determining the needs of the organization for materials, supplies and equipment is a purchasing problem, whether the purchasing agent be charged with the work, whether other units of organization be set up for the purpose, or whether, as in the case of purchasers with simple needs, this determination be left to the users. It involves the elements of grade and variety of articles, total quantity, periodicity of delivery and place of delivery. The importance of each of these elements varies widely among industries of different nature and, within the same industry, with the urgency of needs and with general market conditions. This varying importance becomes a most vital consideration in organization and management. The problem of determining needs for special work, such as a non-standardized constr...