1. Techniques Of Buying 01
• Important Role Of Purchase Manager in Buying
– To Supply the Qualitative Information regarding the potential
suppliers.
• Suppliers Image, Technical Capabilities, Financial Soundness, Reliability,
• Find out whether the supplier/their agent is capable of providing
Technical Know How mainly regarding
installation, commissioning, Training, and After sale service.
• The first step in developing a system for materials management is to
choose the right type of classification for the materials
– Nature of item,
– Regularity of demand,
– Quantities required use The Economic Order Quantity (EOQ) formula.,
– Susceptibility to price variations have Speculative considerations.

2. Techniques Of Buying 02
• METHODS OF BUYING
• Scheduled buying / Bulk ordering with time phased delivery.
– procuring of goods in staggered deliveries. Order covers annual requirements with first
2/3 months confirmed & next 2/3 next months tentative
• Contract buying
– RATE Contract (rate is fixed & not the quantity )
– RUNNING Contract ( rate & quantity both are fixed for the contract period )
– SERVICE (various services are obtained periodically )
• Tender buying – government departments & public sector undertakings , private sector based
on policy decision prescribing limits adopt this method
• Group buying – buying of items of trivial value in single purchase order
• Subcontracting – work placed with outside supplier for economic reasons
• Hand to mouth buying –buying according to the requirements in small quantities or as
contingency.
• Stockless Buying- Buying supplies for direct utilization by the respective departments without
duplication or accumulation in central store. Just In Time (JIT).

3. Basic Principles Involved In Quality At Source
• Selecting the supplier based on their Quality Assurance capability.
• Educating & Training suppliers on various aspects of the quality requirements, measurements
& method of inspection.
• Working closely with the supplier from the stage of assessing the technical capability, vendor
development, sample validation, pilot/bulk supply stage up to establishing regular supplies of
non standard materials.
• Lending them special tools & gauges.
• Introduce preshipment quality audit.
• Providing feed back on nature of defects & helping them to reduce/eliminate rejection.
• Encouraging them to improve their productivity & quality by adopting JIT concept.
• Adapting TQM as the philosophy of control & replacing Error Detection Base system by Error
Prevention Base system.