The 5R principle refers to the activities of guiding enterprises to buy back the required quantity of goods from the appropriate suppliers at the appropriate time and at the appropriate price, with the aim of maximizing the procurement benefits.

5R principle: the right time, the right quality, the right quantity, the right price and the right place.

Extended data:

Procurement principle:

1, business

To formulate purchasing and supply strategies, we must have a thorough understanding of the overall business policy of the enterprise.

2. Fully cross-functional.

Purchasing decisions cannot be made in isolation, nor can they only aim at the optimization of purchasing performance. When making purchasing decisions, we should consider the impact of these decisions on other major activities. Therefore, making purchasing decisions needs to be based on balancing all total costs.

3. Cost bottom line

Purchasing should not only be a service function, but also meet the requirements of users, and users will not ask too many questions. On the contrary, procurement should raise beneficial and profitable objections to its internal users.

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