Introduction Of Purchase Department

 

Introduction 

                      Purchase is the second stage of supply chain management. Stores department forward the materials requisition to purchase department to procure the materials as per requisition / indent.

                     Purchase department will explore the RFQ (Request For Quote) OR RFI (Request For Information) to its registered vendors.

Vendors will provide the quote / information as per indent. 

 If purchase will get quote for materials. Then he is compare the rates and other terms & conditions with other quotes. Here one thing is remember , there will be minimum 3 quotes are required for comparison. 

In 3 quotes , which vendors quote is lowest , then ask for negotiation. 

After negotiation. Purchase department will raised the purchase order to the lowest one. 

Purchase orders must be shared with stores dept , account dept and vendor. and keep one Purchase Order or Work order copy with itself.

After sharing the PO copy , follow to the materials. 

When material received at stores dept , stores person inward that material, keep update the stock.

And issued to the production dept. 

When stores received the materials he must check the qty, quality and rates as per invoice and purchase order.