Assessing Quality of Goods and Purchasing

Effects of poor-quality goods

Can cause operational delays, extra financial costs, and harm business reputation.

Purpose of quality checks

To ensure goods meet standards and are suitable for their intended purpose.

Checking delivered goods

Verify if goods match the order in brand, size, and packaging, and check for damage or spoilage.

Safety and labelling rules

Goods must be checked to ensure they follow required safety and labelling regulations.

Supplier capacity and reliability

Ensuring suppliers can deliver the right amount on time and have enough stock for busy periods.

Supplier problem response

Checking how quickly a supplier responds to problems to keep service smooth and consistent.

Purchasing decision factors

Suitability for business needs, total cost including hidden costs like delivery and waste, and urgency.

Options for substandard goods

Decide to accept, return, or ask for a discount if goods are not right.

FIFO

Stands for "first-in, first-out" - using older stock first to avoid spoilage.

Stock rotation practices

Label new stock with the delivery date and store new stock behind older stock.

Recording purchases

Keeping clear records using purchase orders, invoices, and stock checklists to support budgeting and compliance.

Purpose of purchase records

Help in audits, disputes, legal checks, and tracking returns or credit notes.