Companies Purchase Supplies Question Answer 2022

E-Business

Question.1
Outline the two main methods by which companies purchase supplies and the two broad
divisions of supplies needed.
Two methods:
Market Purchasing: It means to purchase goods for receiving benefits of better market
conditions. Purchase is not made to fulfil present demands but for future needs also. This is
useful when future demands are measured perfectly and the purchase is made when good market
situations are there.
Contract Purchasing: The purchasing in the contract generally formal, of demanding materials,
providing of which is regularly spread over for a particular time period. A particular material
quantity is contracted to be delivered and purchased in the near future (Hugos, 2018).
Two Divisions:
Integration: It means that everyone concerned in the manufacturing process that collaborates
and communicates. Integrated groups work together to make sure the goods get to distribution
division.
Operations: Daily operations are the backbone of manufacturers working. Managers regulate
the work performance and assure that processing is on track (Hugos, 2018).