Industrial procurement can best be made effective when all purchasing is centralized through one agency.
All vendors inquiries, vendors contacts, purchase requisitions, and requisitions processing, as well as purchasing commitments should be arranged through the purchasing department. This centralization makes;
- for better ordering of input materials.
- duplication of work not possible.
- purchasing procedure to work in harmony.
- an orderly payment of invoice.
However, decentralization is to be considered when centralization makes purchases to cost more. These are some of the reasons;
- when plants or points of materials use are scattered.
- when the transportation costs more on central purchase.
- when delivery of purchase is faster at the points of materials use.
A buyer with an analytical mind and who likes to make study of the product details and the product reviews frequently makes a good purchasing agent. "Service" is the main word for an effective purchaser and he should be willing to lean over backward to be helpful. In heavy industries and also is a huge department, one buyer may focus on the major raw material; an another, the supplies. Such focus enhance the buyer "feel" of the market.
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