Professional Documents
Culture Documents
OBJECTIVES
• To maintain uninterrupted flow of materials to support the
development schedules.
• To procure materials economically at a cost consistent with
the quality and service required. However, generally all
purchases may be attempted at the lowest cost.
• To provide the necessary expertise, advice, information to
the Curators and Education Officers with regard to the best
quality of material available in the market, supplier’s
capability and performance etc.
• To develop and maintain good buyer-seller relationship.
• To promote source development.
• To maintain NCSM’s reputation and credibility in the market
by fair dealings and prompt payments.
FUNCTIONS :
The main functions of the Purchase Department are defined
as follows:
• Procurement of stores through indigenous and foreign
sources 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. Consulting
Administrative Officer or Secretary, NCSM – where
necessary.
• Issue of Purchase Orders.
• Follow-up of purchase orders for delivery in due time
• Verification and passing of suppliers’ bills to see that
payments are made promptly.
• Correspondence and dealing with suppliers, carriers etc.,
regarding shortages, rejections etc., reported by the Stores
Department.
• 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 the
progress of their indents in case of delay in obtaining
supplies.
• Serving as an information center on the materials’
knowledge i.e. their prices, source of supply, specification
and other allied matters.
• Development of reliable and alternate sources of supply.
Please keep in mind that suppliers are selected two times during
the purchasing process:
• to receive the request for quotation; and
• to receive the award of the order.
If you were not one of the suppliers who received a request for
quotation, you will not be one of the suppliers considered for the
award of the order. Therefore, much of your efforts should first be
directed toward getting your company's name on the quotation
lists for your commodities. Please keep in mind that Indiana
University is committed to providing minority suppliers every
opportunity to compete for its business, but you must be
persistent.
Specifications
Occasionally, we must seek professional services from suppliers in
developing specifications for equipment and materials. As a
general practice, if you quote a substitute or alternate goods or
services, you should clearly note the change and provide
documentation. If you have a question about this issue, please
call the purchasing contract manager before submitting your
quotation.
Requests for Quotations (Price Requests)
In many instances, after we have verified the specifications,
requests for quotations (RFQ) or price requests will be sent to a
number of competent suppliers. These requests should be
completed, signed, and returned as indicated on the price request
form. IU considers the pricing information to be binding. You
should review the information above under General Information
while you are preparing your quotation. Please remember: if you
do not submit your response to these requests, you cannot
receive orders from IU.
A signed purchase order (PO), an automatic purchase order (APO)
[both generate a purchase order number], and a procurement
card are the only methods of purchase that obligates IU for
payment. When an emergency arises, a purchasing contract
manager may use the telephone or other means of transmission
to place an order. However, a purchase order number is always
assigned. You should not accept requests for goods or services
without a purchase order number or a valid University credit card.
No other method of purchase obligates Indiana University for
payment.
If you participated in the quotation process but you did not win
the order award, you should make an appointment to see the
appropriate purchasing contract manager. This will give you:
• information on how your competitors priced their commodities;
• information about how you can be more competitive on the next
quotation; and
• a basis upon which to begin talking to the departments and the
purchasing contract managers about your goods and services.
Invoices
A company invoice referencing the Indiana University purchase
order number must be submitted to the Accounts Payable
department before payment can be made.
Correspondence Involving Purchase Orders
All correspondence involving purchase orders should be
channeled through the Purchasing Department. If you correspond
with a person in a department, you should send the appropriate
purchasing contract manager a copy of the letter. This is also true
about FAXes, telephone calls or emails. Since only Purchasing
Personnel are authorized to modify purchase orders, it may be
impossible to audit and approve invoices for payment without
complete records
Out of the total budget of the hospital, almost 60 per cent is spent
on capital procurement. With the advent of latest technology,
medical equipment has come a long way in assisting healthcare
professionals in diagnosis and standard of the hospitals. Hence,
the purchase, maintenance and replacement of medical
equipment are an essential and integral part of hospital
management. Right from the budgeting stage to execution level
for the purchase of equipment, a hospital carefully analyses its
decision, taking into account several factors like the necessity,
utility, pricing and so on. The decision is taken in consultation
with user heads with a team of biomedical engineers, materials
heads, medical professionals, top management officials and so
on. The warranties, technology, branding, training, IT, technical
parameter, upgradation options and integrations are the major
parameters in selection.