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BUYING AND SELLING

3. The Buying Process

3.1. Steps in the Buying Process

  1. Identify the Need – Determine what goods or services are required.
    Example: Need for 10 metres of electrical cable for wiring.*

  2. Find Suppliers – Look for reliable sources of materials (shops, wholesalers).

  3. Obtain Quotations – Ask for price offers from different suppliers.

  4. Evaluate Quotations – Compare quality, price, and terms of payment.

  5. Place an Order – Prepare a purchase order specifying items and quantities.

  6. Receive Goods – Check items received against the delivery note.

  7. Inspect and Record – Ensure goods are in good condition and record them in the stock register.

  8. Make Payment – Pay the supplier as agreed.

  9. Store Goods Properly – Use safe storage to prevent damage or theft.