AUTHORITY

AUTHORITY OF THE PURCHASING MANAGER

The purchasing managers have a few authorities that they always used to communicate, negotiate and deal with customers or suppliers. These authorities are really important to the purchasing manager because they will act behalf of company where they are being hired. We, now, will study these authorities and know how its work and how it be apply for the company`s sake.

Let`s take a look on the first authority that a purchasing manager has, express authority. The express authority is given by the principal when the purchasing manager is appointed. This authority is automatically liable to the purchasing manager when they are on duty. They must behave in a good faith, reasonable manners and ethical act behalf of the principal.

 This authority is legal and governed by the law or court orders. It also can be conferred by the statements of job description from the principal to the purchasing managers or procurement officers. They need act based on the statement given and no exceed it. If their actions are out of the duty they will liable personally.

When the purchasing managers or procurement managers have express authority, they used to know how it works. They then must understand the way that second authority is implied. So, let`s rock and roll the second authority. This one is implied authority. How it works?  This authority is applied when the managers use its authority to negotiate and deal with suppliers to buy whether raw materials, semi components or part of components. Those managers imply its authority dealing the terms of contract. The terms are such the products, prices, quantities, quality and other descriptions, delivery condition, and payment date.

Last but not least, the last one is emergency authority. This authority is totaling rare to be used. It because the condition to use this authority is rarely happens. First condition is the principal is cannot be contacted or impossible to give the orders. Second is the purchasing managers act to protect the principal`s properties or rights. The last one is the purchasing managers are acting on the good faith. It is more like ‘Tomatoes Case’.