1. PURCHASE MANAGEMENT
• All the organization needs require efficient and economic purchasing
and procurement of its various supplies of materials from the supplier.
4. OBJECTIVES
Maintaining the continuous supply to support
production
Doing minimum investment in stores and materials
inventory
Avoiding costly delays and wastage of purchased
items
5. OBJECTIVES
Maintaining quality standards based on suitable criteria
Procuring the materials at the lowest possible cost
Ensuring sound customer supplier relationship
6. FUNCTIONS
Requisition of materials to initiate to initiate the purchase
Selection of proper suppliers
Negotiation for the cheapest possible price with the
suppliers
7. FUNCTIONS
Ensuring the quality of materials without compromising
with the cost
Purchasing the materials of right quantity and quality at the
right time and cheapest price
Setting the proper purchase policies and procedures
8. PROCEDURES
Ascertaining the need and recognition of it.
Accurate statement of specifications, character, quality
and quantity requirements with full descriptions.(
Requisition form)
Transmission of the purchase requisition.
Negotiation with the possible sources of supply.
Analysis of the proposal, determination of the price,
availability and delivery time.
9. PROCEDURES
Selection of the vendor and placement of the supply
order and purchase order.
Expediting and follow up.
Arranging for receipt, inspection, replacement of the
rejected and defective materials and goods.
Checking of invoices and bills payable.
Completion of records and files.
10. SOURCES
Past experience with the supplier
Interview with salesmen
Technical and descriptive catalogues
Trade directories and trade journals
11. SOURCES
Visits to trade fairs
Consulting trade agencies
Open and limited tenders for quotations
Periodical advertisements in the press
