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Purchase Procedure

Purchase Procedure

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Published by sag4u

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Published by: sag4u on Feb 04, 2010
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1 Purchase procedure is one of the important task of procurement of any material. Discuss in detail thepurchase procedure of a colour Doppler machine for a 500bedded hospital.
 To maintain uninterrupted flow of materials to support thedevelopment schedules.
 To procure materials economically at a cost consistent withthe quality and service required. However, generally allpurchases may be attempted at the lowest cost.
 To provide the necessary expertise, advice, information tothe Curators and Education Officers with regard to the bestquality of material available in the market, supplier’scapability and performance etc.
 To develop and maintain good buyer-seller relationship.
 To promote source development.
 To maintain NCSM’s reputation and credibility in the marketby fair dealings and prompt payments.
 The main functions of the Purchase Department are definedas follows:
Procurement of stores through indigenous and foreignsources as required in accordance with the rules in force.
Checking of requisitions/purchase indents.
Selection of suppliers for issue of enquiries.
Issuing enquiries/tenders and obtaining quotations.
Analysing quotations and bids etc., and preparation of comparative statement (quotation charts).
Consultation with the Indentor for selection and approval of quotations and with Accounts Officer for pre-audit.
Negotiating contracts.
Checking legal conditions of contracts. ConsultingAdministrative Officer or Secretary, NCSM – wherenecessary.
Issue of Purchase Orders.
Follow-up of purchase orders for delivery in due time
Verification and passing of suppliers’ bills to see thatpayments are made promptly.
Correspondence and dealing with suppliers, carriers etc.,regarding shortages, rejections etc., reported by the StoresDepartment.
Maintenance of purchase records.
Maintenance of progressive expenditure statement, sub-head wise.
Maintenance of vendor performance records/data.
Arrangement for Insurance Surveys, as and when necessary.
Clearance of foreign consignments.
Keeping various Departments/Divisions informed of theprogress of their indents in case of delay in obtainingsupplies.
Serving as an information center on the materials’knowledge i.e. their prices, source of supply, specificationand other allied matters.
Development of reliable and alternate sources of supply.
It shall be particularly ensured:(a) that all purchase are made against properly authorizedrequisitions, and valid sanctions, showing the correct and detailedend-use.(b) that all the materials requisitioned are duly ordered from theright source after full enquiries on most competitive price takinginto account the trade discounts and tax benefits etc.(c ) that the right quantity of the goods consistent with the qualityand the specification required is bought.(d) that the deliveries of all goods are received within thestipulated period.(e) that claims due to shortages or any other discrepancies aresettled promptly.(f) that cordial and harmonious relations with all sections/divisionsare maintained for becoming an efficient service unit in themuseum/center. 
While receiving the planned requirement of the indentors, itshould be prevailed upon the Indentors to certify clearly thatthe quantities indicated are definitely required for theproject and specify the period within which the quantitiesindented will be consumed. It is the duty of the purchasesection to check purchase indents against needs andsuggest modification of quantities wherever necessary.
Steps in the Purchasing Process
 The general pattern for handling purchase orders is as follows:1.A department initiates a request for goods or services andsends it to the Purchasing Department.2.Purchasing staff verifies that the specifications are completeand selects potential sources.3.Purchasing staff follows good business practices indetermining the best offer for required materials or services.We review quotations based upon:
unit costs and total costs;
completeness of the order and adherence to thespecifications listed;
delivery costs;
delivery time; and
warranties, maintenance, installation, etc., e.g., service.4.When we award an order, we will FAX or mail an IU purchaseorder form containing a purchase order number to place anorder. In some circumstances, we may telephone in an orderwith a purchase order number.5.You must send an invoice with the purchase order numbernoted on the invoice to the IU Accounts Payable Departmentbefore a payment can be made.
Selection of Suppliers
 The Purchasing Department staff is responsible for the selectionof reputable, dependable suppliers. If you have not dealt

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