Presentation on Purchase Mangt.

1. PURCHASE MANAGEMENT
• All the organization needs require efficient and economic purchasing
and procurement of its various supplies of materials from the supplier.

2. OVERVIEW
 PRINCIPLES
 OBJECTIVES
 FUNCTIONS
 PROCEDURES
 SOURCES

3. PRINCIPLES
Purchasing
Principles
Right
Quantity
Right
Quality
Right
Price
Right
Source
Right
Place
Right
Time

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

12. Prepared By :
Rohit Kochhar