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Arguably, one of the driving forces behind creation of
human civilization has been the human need to fulfill
itself through exchange of the need object. Initially,
the exchange took place in the form of Barter trade
but later currencies became the common denominator for
such exchanges. Purchasing , as an activity, thus
seeks to fulfill the need for a good or a service
through exchange of money (currency).
One of the key determinants of the economic health of
a society , purchasing became more complex , as a
function, as the economic competition grew world wide.
Purchasing or procurement , as a function , became the profit centre
and its efficiency started determining the bottom line
of businesses. Purchasing within the country ,
indigenous, and from outside i.e. import
started to assume its own professional body and
language. The INCO terms FOB, FOT, CIF etc ,for
transnational purchases, is the recognised
language of the profession.
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Due to its key importance in business, purchasing
too is undergoing a continuously evolving process.
Over the period its various aspects too became
highly professional. Warehousing, Inventory,
Logistics management , Supply Chain Management are
the buzz words for industry. The advancement
witnessed in the Information technology has
quickened the pace of the purchasing function.
From expressing the need for a good or service in
the form of an Request For Quotation (RFQ) to receiving and processing it
online and finally placing order, all can be done
with the click of a mouse. The B2B , B2C , C2C etc
are the modern trade names determined by the
Purchasing function. Internet has become the
market place and Credit card , the money !! There
is the concept of a virtual market now where
purchasing, evolving continuously, is known as
reverse auction and Selling as forward auction !!
Buyers and sellers meet on the cyberspace to deal
and negotiate !! |
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