SECTION 2: MAKE PURCHASES

Activity 5
1.Using the organisation that you used in the previous assessment activity explain the authorisations that are required in the following cases:
o a carton of milk
o stationery supplies
o a new PC
o attendance at an overseas conference
o a specialised piece of machinery critical to operations that will cost a significant amount of money

2. Discuss what might happen in an organisation of 300 people if there were no approvals required for purchases. In your opinion, is an approvals policy needed and if so, what are the constraints that you would recommend to be included.

Activity 6
1. You have been asked to purchase a new wide screen TV for your work. Draft a detailed specification outlining the requirements.
2. Describe the process that you would follow to obtain quotations for the TV. Describe the number of quotations that you think is appropriate and explain why.
3. Describe a situation where you would advise an organisation to use a tender process to obtain quotations on goods or service. Explain why the tender process would provide an advantage over other methods and describe the steps to be followed.
4. Why do you think it is necessary to be aware of culturally appropriate techniques when communicating with suppliers from diverse backgrounds and with diverse abilities?
Activity 7
1. Explain what protection a PO offers the company that raises it and the protection that it offers to the company receiving it.
2. Obtain an example of a purchase order. List the details that are contained on it.