Procurement Methods
Using a single vendor for the majority of purchases, saves time and money
Prime Vending
First functional subsystem, function of acquiring materials for production
Procurement
Close to the docks with easy access to storage
Receiving area
Purchase products as needed for production and immediate consumption by consumer, without having to store and record in inventory
Buyer provides written specifications and quantity needs to vendors who submit a price
Formal/Competitive Bid
Purchasing department that is assigned both expense and revenue responsibilities (cafeteria)
Profit Center
Vendor's delivery slip that accompanies the order. Supplies statement of items being shipped, unit price, total expected payment
Invoice
Connects buyers with sellers, does not own products
Food Broker
Buyer requests quotes on specific items for specific amounts and qualities from one our more supply sources. Contact made by phone or with vendor
Informal/Open market
Purchasing department that manages expenses, but does not generate profit (patient)
Cost center
This purchase order eliminates the need to call in daily or weekly orders
Standing Order
Lists items received, date, number units, unit price, supplier, and PO number
Daily receiving report
Blind check receiving method
Purchase goods at a specific price to be shipped later
Future contracts
First document used in the purchasing process, internal form used to request items from the purchasing manager
Purchase requisition
This purchase order ensures products are delivered with all transport charges paid
FOB (free on board)
Request for credit
Involves union of separate units (hospitals), not related to a single management, for joint purchasing
Group or co-op purchasing
Personnel in one office does all purchasing for all units in that organization
Centralized purchasing
Form completed by the buyer, a written record of items ordered and quantities needed
Purchase order
Buyer takes ownership at seller's location
FOB-origin
Procedure of receiving an order
2. Compare invoice and items received
3. Inspect items for quality
4. List items on receiving report
5. Store items promptly
Forecasting model that uses expert opinions, market research, and panel consensus
Delphi technique