Subject: Logistics Management

How to Buy

Direction: Imagine that you want to buy something relatively expensive, such as a car. What alternative sources are there? Describe the steps you would follow in making the purchase. Now compare these with the steps followed by a company making a similar purchase. Is it difficult to get information about the procedure that an organisation uses for procurement?

In a situation where one want purchase something which costs more than the money in hand, one is advised to apply other modes of purchase. such as hire purchase mode of payments.

credit purchase

steps to follow when making up a purchase

Choose Your Priorities There are lots of cars on the market, in existence of many cars in the market one has to choose his/her favorite according to different test and preferences.

Research Your Options

Explanation: in a situation where one want purchase something which costs more than the money in hand, one is advised to apply other modes of purchase. such as hire purchase mode of payments. hire purchase is a mode of purchasing of an item, where the buyer hires goods, and takes possession of it and pays regular installments. ownership is only transferred upon payment of the final amount. there must be an agreement whereby an owner of goods allows a person, the hirer, to hire goods from him for a period of time by paying installments. The hirer has an option to buy the goods at the end of the agreement if all installments are being paid. (Razali, Azmuddin, and Mohammad Amir Wan Harun 2021)

credit purchase this is the trust which allows one party or the seller to provide good and services to another party wherein the second party or the buyer does not reimburse the first party immediately or one may decide to pay half of the cost or the amount available, but promises either to pay the remaining amount at later dates. (Banker, Sachin, et al 2021) application of loans from banks is also recommended. this helps to reduce financial stress where one is allowed to pay later under agreed terms and reduced pressure

steps to follow when making up a purchase

Choose Your Priorities There are lots of cars on the market, in existence of many cars in the market one has to choose his/her favorite according to different test and preferences.

Now compare these with the steps followed by a company making a similar purchase. Is it difficult to get information about the procedure that an organisation uses for procurement?