Leaders Born or Made
ASSIGNMENT
OF
FINANCIAL MANAGEMENT
Topic: Computerised Purchase System
Submitted by: Pranav Gupta
Roll No. 1400712
MBA-HRM
Definition of 'Purchasing System'
A method used by businesses to buy products and/or services. A purchasing system manages the entire acquisition process, from requisition, to purchase order, to product receipt, to payment. Purchasing systems are a key component of effective inventory management in that they monitor existing stock and help companies determine what to buy, how much to buy and when to buy it. A popular purchasing system is based on economic order quantity models.
Efficiently tracking inventory is an imperative component to a small business’ successful operation. By having up-to-date data regarding all needed office supplies, raw manufacturing materials and merchandise for sale, an organization will drastically increase its bottom line. In addition to the money saved by not reordering unnecessary goods, an enterprise will be better positioned to services customers quickly, as well as navigate any unexpected changes in business, such as a supplier abruptly going out of business. Although many companies maintain this information manually, there are benefits to using a computerized inventory system.
Time Savings
As the old saying goes, “time is money.” The amount of time that can be saved by a business is, perhaps, the biggest benefit of using a computerized inventory system. A great example of this benefit is the retail industry. In cases where a shop maintains all data manually, its manager must reconcile each sales receipt with every piece of physical inventory. Depending on the size of the establishment and how many different products are sold, this can be a daunting and time consuming task. If that same store, however, used a computerized point of sale, POS, system, the master inventory list would be updated electronically each time a sale is made. The only thing a
OF
FINANCIAL MANAGEMENT
Topic: Computerised Purchase System
Submitted by: Pranav Gupta
Roll No. 1400712
MBA-HRM
Definition of 'Purchasing System'
A method used by businesses to buy products and/or services. A purchasing system manages the entire acquisition process, from requisition, to purchase order, to product receipt, to payment. Purchasing systems are a key component of effective inventory management in that they monitor existing stock and help companies determine what to buy, how much to buy and when to buy it. A popular purchasing system is based on economic order quantity models.
Efficiently tracking inventory is an imperative component to a small business’ successful operation. By having up-to-date data regarding all needed office supplies, raw manufacturing materials and merchandise for sale, an organization will drastically increase its bottom line. In addition to the money saved by not reordering unnecessary goods, an enterprise will be better positioned to services customers quickly, as well as navigate any unexpected changes in business, such as a supplier abruptly going out of business. Although many companies maintain this information manually, there are benefits to using a computerized inventory system.
Time Savings
As the old saying goes, “time is money.” The amount of time that can be saved by a business is, perhaps, the biggest benefit of using a computerized inventory system. A great example of this benefit is the retail industry. In cases where a shop maintains all data manually, its manager must reconcile each sales receipt with every piece of physical inventory. Depending on the size of the establishment and how many different products are sold, this can be a daunting and time consuming task. If that same store, however, used a computerized point of sale, POS, system, the master inventory list would be updated electronically each time a sale is made. The only thing a