This document outlines the purchase procedure for an organization. It discusses obtaining requirements from user departments, sending enquiries to vendors, getting quotations, selecting the lowest bidder, negotiating prices, following up with vendors, inspecting delivered materials, and crediting materials to stores. The key steps are sending enquiries, obtaining quotations, selecting the best vendor based on price and quality, negotiating, inspecting delivered goods, and crediting materials to stores.

1. ~S.Y.B.M.S

2. Group Members
1. Sukanya Shetty 42
2. Mitesh Shetty 40
3. Nitin Hegde 18
4. Tejashree Kolamkar 24
5. Joel Steevan 45

3. INTRODUCTION
• Formal process of buying and selling of goods and services.
• Main activity.
• Place where money is spent out of organization.
• Decides profitability of the company.
• Important function.
• Usually vary from one organization to another.

4. Principles Of Purchase
• Buying the material at right price.
• Buying materials of right quality.
• In the right quantity.
• At the right time.
• From the right source.
• At the right place.
• With right mode of transport.

5. Purchase Procedure
Requirement of the user department :-

6. Send enquiry to the vendors :-
• The buyer releases the enquiry to the vendors.
• 3 vendors.
• Capability of making items as per the quality required.
• Essential to fill up the quality requirements of the item.

7. Get Quotations from Vendors :-
• Buyer gets Quotations from different vendors.
• Maximum 3 are selected.
• He tabulates the quotations and finds the lowest quoting
vendor suitable according to the buyers estimated cost.

8. Study and compare the quotations with
our estimated costs :-
• The buyer selects 3 vendors.
• From these 3 vendors the lowest quoting member is
chosen.

9. Negotiating the quoting to fix the price :-
• The buyer negotiates with the vendor to agree upon a
certain amount.
• Both the buyer and the vendor conclude with a fixed
negotiated price.
• Hence the order is placed to the right vendor.

10. Follow-up with the vendor :-
• Important function in the life of a buyer.
• Highly under valued and seen as unpleasant.
• Buyer has to have good skills to follow up.
• Rarely vendor supplies materials as he promises and as
what is discussed and agreed amongst two parties.

11. Get and inspect the material :-
• The buyer get the material from the vendor.
• Buyer imports the materials from the vendor and
inspects it accordingly.
• Inspection leads to “make sure no damage is occurred
while transporting and it must be as per the booking of
the buyer.”
• Inspection is mainly done by the purchase department
professionals.

12. Stores credit the material :-
• After inspecting done by the buyer, the buyer stores the
goods in the warehouse.
• Payments are made on cash or credit basis.

13. THANK YOU