Unit 9: Procurement process in business, 5 rights of the Purchaser PDF

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This document contains a clear explantion on the 5 rights of the purchaser which are also considered as the 5 rights of procurement, I have made sure to include and envolve related example....

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Procurement process in Business Q. 5 rights of the Purchaser This are the regarded to be the primary task of procurement by making sure they are providing the rights inputs for the organization process and these rights are, right quality, Right Quantity, Right Place, right time and right price. 1. The right Quality This means that you have to obtain goods of satisfactory quality so that it fits in the purpose of the one getting the stock and the Internal and external customer’s needs with a good supplier and buyer side quality management to refrain from any circumstance with any off them after getting those stocks and also with an accurate specified requirements and quality standards. Example: if you are having some stocks to sell in the bidding strategy, then before people be raising their investments your product has to be off good quality were there are no issues between suppliers and buyers which might be causing you to give out those stocks and this is so critical to check before you give out the stock because it might also be rejected or even damage the company’s reputation because of just not providing the right quality to the buyers. 2. The Right Quantity This means to make sure that the quantity you are providing is sufficient and that they are able to maintain service levels Example: If a company is buying stocks the seller has to identify how accurate demand forecasts for products are daily or on a weekly based so that the buyer will be given products that are sufficient and that will not start to face losses. 3. The Right Place This means the products are supposed to be delivered at the appropriate delivery point while maintain the secure safe arrival in good conditions. Example: If a buyer wants the product but is not there to take it with him/her then the address will be provided for the product to be delivered and the seller has to deliver the products at the right place in good conditions because if not so they might be delivered in a wrong place and you might be getting losses and if delivered in a bad condition also will have to compensate the product and replace it with the one with good conditions. 4. The Right Time This means taking care of Demand management and supplier management to make it easier for you to secure delivery of goods at the right time to meet the customer’s demand.

Example: If you have a shop selling some staffs and your buyers make some orders you have to make sure your suppliers be supplying to you as quick for you to handle demands in an appropriate time that the customer needs it too, so that everything also be effective in the end. 5. The Right Price After all verification of making the above right things to have you secure them with a reasonable price that will maximize your profits and survive with all the competitors in the market plus being fair and makings your staffs affordable to the customers. Example: If selling some products like cosmetics and you have checked out the above qualifications, It has right Quality, Quantity, you’re able to track right places to deliver to, your time is perfect Then you have to make some price analysis that will make you survive the competition because there are many other businesses selling cosmetics out there with better quantity to yours, so at this point you make prices that are fair and affordable to the customers and make clear negotiations to make the right decisions.

Reference https://www.linkedin.com/pulse/five-rights-procurement-eman-abouzeid-cscp-cipshttps://www.naomiclewsconsultancy.com/procurement-blog/what-are-the-5-procurementrights...