Purchase Management...

1. PURCHASE MANAGEMENT IN HOSPITALS PRESENTED BY: Dr. Debanjana Ghosh Dr. Prabhpreet Kaur Dr. Prashanth Kulala Dr. Sandip Kr Neogi Shwetnisha Bose

5. PURCHASE CYCLE

6. WHAT IS PURCHASE CYCLE??? Frequency with which an inventory item is ordered or consumers buy a goods or service.

7. STEPS IN PURCHASE CYCLE 1. Recognition of need 2. Specify the need 3. Determine sourcing option : a. Supplier list available b. Supplier list not available i. Search ii. Qualify

8. 4. Establish price and terms: A buyer should know the nature of the market and the market value of the material or service. 5. Prepare purchase order: A purchase order is used to purchase materials. STEPS (Cont.)

10. 6. Deliver purchase order : The usual methods of delivery are by hand, mail, courier, electronically or by fax. 7. Expediting: An activity to ensure that materials or services are being delivered or performed in the manner and timing agreed. 8. Receive and inspect: In receiving, items are accepted or rejected based on the documentation. Once acceptance is made, the company is obligated to pay for what was received.

11. 9. Approval and payment: Approval based on a "three-way match" of the purchase order/contract, the receiving document and the invoice. 10. Maintain records: Detailed records must be maintained to satisfy government auditors and as a reference for the company.

12. FEATURES OF PURCHASE MANAGEMENT

19. The ultimate aim is to transform a sick patient to a healthy person at a reasonable cost, in the shortest possible time and with superior patient satisfaction.