Purchasing and Procurement (supplier selection, ordering, pricing, returns, warranties)
Supplier selection
Judge a supplier on price, availability, quality, delivery reliability, warranty support, return policy, credit terms and technical backup - not price alone. A low price with poor fill rate costs the shop in comebacks and lost counter sales.
Ordering
A requisition is internal; a purchase order is the binding offer to the supplier and should state part number, description, quantity, price, delivery date, ship-to and terms. Requests for quotation gather price and availability before committing. Record backorders and follow up on promised dates. Special-order parts may need a deposit and are often non-returnable.
Pricing and terms
Know cash discount terms such as 2/10 net 30: 2% off if paid within 10 days, full amount in 30. Freight terms (FOB origin versus destination) decide who pays freight and when title passes. Understand core charges - a deposit refunded only when the old unit is returned complete and rebuildable.
Returns and warranties
A return is a commercial reversal (wrong part, overstock) and may carry a restocking fee and a time limit. A warranty claim is a defect claim against the manufacturer, with its own proof, labour and authorization requirements. Never mix the two: refunding a warranty as a return hides the failure and loses the claim.
Worked example: invoice $1,000 with terms 2/10 net 30, paid on day 8 → $1,000 × 0.98 = $980.
Traps: choosing the cheapest quote; assuming a core charge is refundable on a damaged core; missing that a special order cannot be returned.