10 Unit Credit Values

• Functions of a Purchasing System: life cycle costing; total acquisition cost model
• Stages of the Life Cycle: planning and design; acquisition, storage, use and disposal
• Stages of the Purchasing Process: goods or service needs are identified; the goods or services are requested; the goods or services are authorised; a purchase order is placed with an appropriate provider; supplier delivers goods or services; goods or services are received; payment is made; order processing cycle
• Methods Used to Gain Information: word of mouth; advertising and marketing; company information; sampling; SWOT analysis
• Supplier Development: potential for partnership; scope for development; quantifiable outcomes
• Selection of Suppliers: identifying needs; investigating the supply market; collecting relevant information; assessing options; making decisions
• Methods of Communication: oral communication; written communication; non-verbal communication (body language); formal communication; informal communication
• Terms of a Contract: consequences of breaching contracts

The above is the unit content for the Introduction to Purchasing unit found in the Level 2 qualification. To view more units, click here and select the “Units” tab.