Benefits of Scientific Purchasing: The purchasing department is entrusted with the task of procuring the materials. The function of the purchasing department is to procure needed materials, supplies, machines, tools and service at an ultimate cost consistent with economic conditions surrounding the item being purchased; to safeguard the standard of quality, continuity of service, the competitive position and the company’s reputation for fairness and integrity.
Modem trends in legislation make it essential that the purchasing department, also should watch the enactment of new laws as to &ices, business regulations and ensure the company against their violation. In brief, scientific purchasing provides multi-fold benefits to a company. They are pointed out shortly in the following section.
Benefits of Scientific Purchasing to a company:
(i) Proper sales cannot be made unless materials to be used for resale eta manufacture are bought at cheap rates than that of competitors.
(ii) To keep continuity of production, goods must flow to factory uninterruptedly.
(iii) Purchasing department should be able to advise the concern to its advantage.
(iv) Purchasing departments contract with other firms and vendors contribute invaluable help in framing plans.