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Answer:

Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.

The effective purchasing is very important to a small business.  Purchasing is a key factor for any small business as  it influence the performance at all levels.

  • When the supplies you purchase for consumption do not meet one's needs they will limit the efficiency of the operations you want to carry out and also cash flow in the organization or business. One must to create the right purchasing procedures and closely handle them.

 

Purchasing systems play an key role in controlling a company's cash outflows this is because they ensure that only the key purchases are made and that they are to be done at good or reasonable prices.

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