Purchasing Handbook
for Small Business
Table of Contents

1. Purchasing's Function
2. The Importance of Purchasing
3. Attention: Company Ownership
4. Establishment of Authority
5. Overview of Purchasing Process
6. The Purchase Requisition
7. The Purchase Order
8. Battle of the Forms
9. Verbal Orders
10. Order of Precedence
11. Communications
12. Request for Needs
13. Notifying Winning & Losing Bidders
14. Selecting the Right Supplier
15. Supplier Surveys & Visits
16. Supplier Managemant
17. The Cost of PR/PO Process
18. P-Cards (Procurement Cards)
19. Payment Terms
20. Discounts
21. Economic Order Quantity, EOQ
22. Negotiation
23. Contracts
24. Oral Contracts
25. Breach of Contract
26. Electronic Signatures
27. Law of Agency
28. Adequate Assurance
29. Domestic Shipping Terms (FOB)
30. Outsourcing & Off-Shoring
31. International Shipping Terms
32. Value Analysis/Value Engineering
33. Blanket Orders
34. Ethics
35. Conflict of Interest
36. Gratuities
37. Inventory Management
38. Inventory Carrying Costs
39. Purchasing Services
40. Follow-Up & Expediting
41. Price Indices
42. Relationships
43. Getting the Most from the Sales Team
44. Training/Professional Development
45. Seminars: Getting Your Money's Worth
46. Professional Purchasing Associations
47. Certification
48. Re-Certification
49. Reporting to Management
50. Leadership

• Conversion Factors, General
• Fractional/Decimal/Metric Equivalents
• Centimeters to Inches
• Inches to Centimeters
• Kilometers to Miles
• Miles to Kilometers
• Temperature Conversions
• Melting Points of Materials
• Kilograms to Pounds
• Pounds to Kilograms
• Liters to Quarts
• Liters to Gallons Units of Measure
• Square Meters to Square Feet
• Circles: Circumference & Area
• Velocity
• Standard Metal Gauges
• Weight of Common Building Materials
• Weight of Standard Steel Plate
• Industrial Standards
• Weight of Pure Water
• Kitchen Measurements
• Standard Screws
• Hourly Production Rates
• Zip Codes, United States
• City Abbreviations
• Telephone Area Codes
• International Telephone Country Codes
• International Time Zones
• World Voltages
• Incoterms - Chart of Responsibility
• American Wire Gauge
• Fuel Needed to Travel
• Sample Seminar Report
• The Ten Commandments
• Biblical Unit Conversation Factors
• US Presidents & Vice Presidents
• Electoral Votes
• Tweeter Acronyms & Abbreviations
• Weights of Healthy Men & Women

• Purchasing's Interface
• Overview of Purchasing Process
• Buyer's Decision Process #1
• Buyer's Decision Process #2
• Battle of the Forms Overview
• Order of Precedence Example
• Pathway to Breach
• Law of Agency
• Summary of F.O.B. Terms
• Ability to Affect Change
• Morals, Legal, Ethics
• Ethics
• Getting the Most from Salespeople

• The Purchase Requisition (7 part form)
• Receiver Form
• Purchase Order Follow-Up
• The Purchase Requisition (3 part form)
• Traveling Requisition
• PR Corrective Action Required
• The Purchase Order (3 part form)
• Suggested PO Terms & Conditions (boilerplate)
• Request for Quotation Form
• Supplier Value Analysis Suggestions
• Cost of PR/Purchase Order Process
• Supplier Score Card
• Supplier Corrective Action Request
• Supplier Profile Sheet
• Supplier Survey Short Form
• Supplier Survey Extended Form
• Supplier Security Survey
• Follow-Up/Expedite FAX Form
• Full Disclosure Form
• Non-Disclosure Form
• Model Code of Ethics (for the Buyer)
• Model Code of Ethics (for the Supplier)
• Monthly Purchasing Report
• Measuring Purchasing Performance

• Open Letter to Your CEO
• Establishment of Authority
• Authorized Purchase Only
• Memo - Authorized Purchase Only
• Reject Invoice
• Battle of the Forms
• Late Delivery
• Reject of Non-Conforming Goods - #1
• Reject of Non-Conforming Goods - #2
• Notification of Breach of Contract
• Cancellation of Order for Breach
• Transmittal of Standard T&Cs
• Confirmation of Verbal Order
• Request for Information
• Request for Quotation
• Credit Card Acceptance Survey
• Request for Credit Card Payments
• Request for Preferred Payment
• Conflict of Interest/Gift Policy
• Demand for Adequate Assurances - #1
• Demand for Adequate Assurances - #2
• Failure to Provide Adequate Assur.
• Acceptance of Non-Conforming
• Congratulations, New Position
• Thank You for Your Quotation
• Award of Contract Letter

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