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BUYING AND SELLING

3. The Buying Process

3.3. Importance of Proper Buying Process

  • Ensures quality materials.

  • Avoids wastage and loss.

  • Builds good supplier relationships.

  • Helps in accurate record-keeping.

  • Leads to customer satisfaction.

Practical Example

An electrician wiring a building needs to buy:

  • 5 rolls of cable

  • 20 sockets

  • 10 switches
    He obtains quotations from three suppliers, compares prices and quality, places the order, and records the delivery once received.

Summary

A good buying process ensures the right materials are purchased at the right time, quality, and price.

Review Questions

  1. List the steps in the buying process.

  2. Mention four factors to consider when buying materials.

  3. Explain the importance of a purchase order.

  4. Why is it important to compare quotations?