The document outlines the principles, objectives, functions, procedures, and sources of purchase management. It discusses maintaining continuous supply and quality standards while procuring materials at the lowest possible cost. The key functions are requisitioning materials, selecting suppliers, negotiating prices, and ensuring quality at the best value. Procedures include ascertaining needs, setting specifications, transmitting requisitions, analyzing proposals, selecting vendors, and inspecting received goods. Sources of supply include past experience, salesmen, catalogs, directories, trade fairs, agencies, and tenders.

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