Commonly requires specific authorisation in most cases there needs to be specific – permission verbally given to go ahead and make necessary purchases, or there will be a need to gain a signed to proceed (such as a Purchase Order) ‘authority’ Can require multiple quotations to be obtained for comparison purposes before an – order is placed. Many organisations require this the value of resources to be purchased is above a designated value. require trialling of resources prior to purchase this might entail a variety of – activities which will vary depending on the nature of the resources but might include: Testing items for the purpose they are intended to determine performance and – applicability Viewing use of the resources in operation at other businesses and/or on other tours – to verify their suitability Generally requires that only a limited/maximum number (or value) of stock is acquired at any one time in order to control the value of inventory so excess cash is not tied up in – stock/resources Might require purchases are: Made from designated suppliers only as providers’ – ‘preferred Bought before or a certain date to accommodate internal cash flow constraints – Lodged using a given purchasing protocol such as online, using a sales – representative, in-person, by telephone, via contract/tender process. In practice all resource types (physical, financial, human, information or a combination of – same) might need to be changed. Practical revision of resources The actual revision of resources must reflect the identified need to make alterations to what was previously allocated. In practice this require: Buying more of the same resources to: – Meet identified increased demand Replace items which have been stolen, damaged, discarded, lost or used Buying different brands/types of the same sort of resources in effect this is the same as – substituting items which might occur in order to: Meet identified preferences for different brands/makes/models by tour group members Reflect better deals the organisation has been able to negotiate with suppliers Acquire a more efficient or effective resource option compared to what was previously being used Upgrading existing resources which might mean: – Purchasing the same items but getting new ones to enhance their appearance – thereby maintaining the image of the business
Commonly requires specific authorisation – in most cases there needs to be specific permission verbally given to go ahead and make necessary purchases, or there will be a need to gain a signed ‘authority’ to proceed (such as a Purchase Order) Can require multiple quotations to be obtained for comparison purposes – before an order is placed. Many organisations require this the value of resources to be purchased is above a designated value. require trialling of resources prior to purchase – this might entail a variety of activities which will vary depending on the nature of the resources but might include: Testing items for the purpose they are intended – to determine performance and applicability Viewing use of the resources in operation at other businesses and/or on other tours – to verify their suitability Generally requires that only a limited/maximum number (or value) of stock is acquired at any one time – in order to control the value of inventory so excess cash is not tied up in stock/resources Might require purchases are: Made from designated suppliers only – as ‘preferred providers’ Bought before or a certain date – to accommodate internal cash flow constraints Lodged using a given purchasing protocol – such as online, using a sales representative, in-person, by telephone, via contract/tender process. In practice all resource types (physical, financial, human, information – or a combination of same) might need to be changed. Practical revision of resources The actual revision of resources must reflect the identified need to make alterations to what was previously allocated. In practice this require: Buying more of the same resources – to: Meet identified increased demand Replace items which have been stolen, damaged, discarded, lost or used Buying different brands/types of the same sort of resources – in effect this is the same as substituting items which might occur in order to: Meet identified preferences for different brands/makes/models by tour group members Reflect better deals the organisation has been able to negotiate with suppliers Acquire a more efficient or effective resource option compared to what was previously being used Upgrading existing resources – which might mean: Purchasing the same items but getting new ones – to enhance their appearance thereby maintaining the image of the business