The quantity of purchased goods must be according to the requirement of the production. Purchase of more or less quantities than the requirement, it will lead to huge inventories and lock-up of finances. On the other hand, if purchased quantity is less than the requirement, it will lead to the stoppage of work and machinery may remain idle leading to loss in production. Both situations are harmful for any concern. Therefore, this objective of purchasing function is also very important.
Important Qualities of a Purchase Executive
A purchase executive should possess the following qualities (qualifications) in order to serve the organization better :
(a) He should possess adequate experience in purchasing and should be fully conversant with the materials he has to deal with.
(b) He should possess sufficient knowledge of substitutes of the materials currently being used. (c) He should know the various processes through which the materials pass before being completely manufactured.
(d) He should have a high degree of technical knowledge and similar are the views of Gantt who opines as follows-
“Two-thirds of all the gain possible through the most efficient management of production could be realized by having all the material ready when you want it, where you want it, and in the condition you want it”
As such, Scientific purchasing is an executive job involving co- operation with other functions, like production, distribution. In nutshell, it can be stated that the enterprise can be made more successful provided all the objectives of purchasing are kept in view while performing purchasing function.
