Tutorial:Business Academy Topic: Organisation and management of purchasing material Prepared by:Ing. Marcela Zlatníková Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

1 / Selecting the right supplier - depends on the price of supplied material and its quality - reliability of the supplier is also important - maintenance services play the roles as well as discount when purchasing large quantities or with repeated purchase - Depends on delivery date, payback period and transport of material

2/ Implementation of supply – legal conditions of purchase - drawing up a contract between the buyer and supplier - legal conditions are dealt with in Commercial Code Two types of contracts: 1. Purchasing contract – commitment that the seller gives the bought thing to the buyer and that the ownership of the thing is transferred to the buyer - buyer agrees to pay the purchase price - the terms of the contract include: subject of contract, purchase price, time, place and means of delivery, claim terms, invoice due date, etc. 2. Contract of Work – contractor undertakes to make some work for client, and the client is obliged to pay

- liability for the performance of the contract a/ liability for defects – low quality material b/ liability for damage – for example to the consumer when delivery is not supplied c/ liability for delay – for example when supplier does not deliver on time, he is obliged to pay interest on delay - defects Are often subject of dispute, are divided into: a/ legal defects – arise when the goods are burdened by the third party b/ defects of goods or work – may be quantitative, qualitative, evident, hidden, removable, irremovable

3/ Acceptance of delivery and its payment - goods must be checked when accepted, whether it meets the concluded contract - checking is carried out by comparing the reality with delivery note - Together with delivery the invoice is sent to the customer, which must be paid within the due date

 Is a discipline, which deals with physical material flows from suppliers to customers (transport, taking delivery, storage) and information flows, namely in the form of documents (delivery note, receipt, storage card, issue slip, invoice)  It decides how to transport material cheaply, quickly, efficiently  Logistic costs are involved in the production cost %  It starts with material purchase and ends up with marketing of product sale  In terms of logistics it is necessary to select the right delivery route, logistically ensure deliveries and suitably resolve delivery mode

 Received material is stored in the warehouse  In the warehouse stock is stored to ensure continuous production  Material is protected against weather and theft there  The warehouse can be building, hall, shed, enclosed area, tank  Warehouse should be equipped with forklift trucks, ladders, computers  Main activities of the warehouse is material receiving, storage and care of material  Warehouses can be organised as follows: 1. centralised – one large store with a responsible person, advantage is lucidity and easier registration and organisation 2. decentralised – several warehouses, responsible person in each one, advantage is that warehouses are located near material processing 3. combined – one large warehouse and several smaller ones, the most common way of storage

 For stock management method ABC is used  Stock is divided into 3 groups according to type of material and the percentage of annual consumption  It is not possible to give all the kinds of material the same attention  Stock registration is nowadays unimaginable without the use of computers Group A – includes basic material, these are kinds with high annual consumption( approximately 70 % of total annual consumption Group B- includes various types of material, it is material with approximately 20% of annual consumption Group C – includes office supplies, detergents, etc, their purchase is planned by total amount of about 10% of annual consumption

1/ What is the difference between the reception and acceptance of material? 2/Say what is the appropriate way of storage:  Metal plates  Sand  Cement  Thinner  Potato chips  Computers 3/ Say what supplies we need: A/ in the home kitchen b/ in production of books c/ in foot repair shop d/ in transport enterprise

 Biňovec, K. Přehled učiva k maturitní zkoušce z ekonomiky. Fortuna, ISBN  Švarcová Jena, ing a kolektiv, Ekonomie, stručný přehled. Ing. Jena Švarcová, Ph.D., CEED nakladatelství a vydavatelství, ISBN  Klínský Petr, Munch Otto, Ekonomika pro obchodní akademie a ostatní střední školy Fortuna, 2003, ISBN