When purchasing something, many things are must to be kept in mind in order to purchase the item if an efficient way. When, how, from whom, how much, etc are the various questions that arises when one has to do a purchasing.
The important principles that should be kept in mind while purchasing something are listed below:
1. Right Quality
The purpose for which the product is being purchased should be known so that best suitability can be found out. Best grade raw material product must be used to produce a good quality product. That is the quality a person needs to purchase the item for a particular purpose. But not always the best quality is the right quality; other factors are also their which decides the item to be purchased.
2. Right Quantity
Right quantity of material should be bought that is sufficient for the purpose for which it is being purchased. It should be of the quantity that provides us with minimum total cost and do not lead to the shortage of the item because of less quantity. Also excess should be avoided, as it can result in overstocking of the item which will unnecessarily block the capital and other transportation like costs.
3. Right Time
This factor is of a great importance and should be considered first when any purchase planning is going on. If the item to be purchased is the item to be used regularly then the right time to purchase the item is when it comes to the minimum level in the stock. Also delivery time must be considered to avoid any kind of delay in the production.
4. Right Source
Supplier who meets the specifications of the item that is the quality, price, quantity which is right is all aspects should be chosen. Source should be liable and authentic. Also the source should not be far enough because this will cut all the transportation and movement costs. All the middlemen should be avoided and direct contact should be established.
5. Right Price
This is very much difficult task as all of the budget is to be considered to make the calculations and chose the right price for the material to be purchased. Right price is that price which will give us the ultimate value of the money and profit in purchasing the material.
6. Right Place
All these factors are kept aside and it should be ensured that the items needed to be purchased are to be available at right place. It will directly decline the transportation and handling costs.