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Purchasing and Procurement

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  1. Session One: Course Overview
    2Topics
    |
    2 Assessments
  2. Session Two: Supply Chain Management Basics
    10Topics
  3. Session Three: The Purchasing Cycle
    12Topics
  4. Session Four: Purchasing Toolkit
    27Topics
  5. Session Five: Managing Competitive Bids
    14Topics
  6. Session Six: Improving Efficiency and Accuracy
    13Topics
  7. Session Seven: Improving Efficiency and Accuracy
    12Topics
  8. Session Eight: Managing Internal Relationships
    9Topics
  9. Session Nine: Tools of the Trade
    14Topics
  10. Session Ten: A Personal Action Plan
    3Topics
    |
    1 Assessment
Session 2, Topic 10
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The Five Rights of Purchasing

1 Sep 2021
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Like so many industries and specialties around us, purchasing continues to change. If you studied purchasing not that long ago (or perhaps your manager did and they sent you on this course), you may have learned something called “The Five Rights of Purchasing.” This principle says that every purchase has to reflect the key objectives of the right quality, in the right quantity, from the right source, at the right time, and at the right price.

  • This model is based on transactions. However, the concept we now focus on is related to relationship development rather than transactions.
  • The price principle is always listed last, as if price is the only conversation left after the other factors are agreed upon. However, procurement is not about a trade-off, where if we agree to a lower quality or a longer time frame, the item would necessarily cost less.
  • Always think about the relationships you are developing with suppliers, stakeholders, and your customers.

Instead of the previous interpretation of “rights” purchasing, we feel that a contemporary view has to include elements of internal operations, sustainability, risk management, and stakeholder engagement.

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