PROCUREMENT PROCESS
Every business entity has got a procurement department or a executive who handles all
purchases depending upon the size of the organisation .Big organisations have multilocational
purchase unit or in some case purchases are made from central unit .
Purchase deptt plays a very critical and crucial role in smooth functioning of organisation
The Head of Purchase deptt is called Chief Procurement Officer(CPO) .Now days CPO has
considerable say in any company policy.
Purchase deptt primary role is to get material at right cost , from right buyer , of right quality
and in right time .
Major role of purchase are following
- Raw Material , Ingredients , fuel buying
- Service contract
- Vendor Development
- Vendor Analysis
- Value Analysis
- Annual Contract
- Capital Purchases .
- Maintenance and Repair contracts
- Payments to vendor .
- Inventory control
- Negotiations & long term contracts
- Scrap management
- Getting licenses for storages etc.ie liasioning with govt depts
- Imports
- Maintaining and Updating Vendor Master.
- Follow up with vendors for Delivery
- Warehousing
- Imports
- Services contract
- Legal and laws of contract
- Purchase Orders and Other Documents ( Quotation , PO , Indent
- ERP -Data Analysis
Procurement process starts from requirement from user dept to purchase dept through Indents
( purchase order requisition) followed by purchase dept inviting quotation from suppliers and
selecting the best offer considering various aspects such as vendors capacity , quality , delivery
schedule ,price and other factors .Purchase orders are released against requisitions . Material is
delivered on specified date and location by the vendors.
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Purchasing Desk .Com objective is to explore purchasing or procurement
role of an organisation . Procurement or purchasing involves acquiring
products, services and works from vendors or internal source.Sourcing is the
process of identifying, evaluating and negotiating with suppliers and service
providers. This includes the entire vendor selection process as well as
contract management. It opens doors to a rich supply of raw materials,
facilities, and labors at lower prices, thus reducing costs and increasing
competitiveness in markets around the world. The presence of
foreign-produced finished manufactures compels domestic industries to be
innovative and efficient, both of which are keys to profitability and longevity.
Purchasing Desk .Com highlights role of procurement in cost reduction
strategies of an organisation in areas like inventory , warehousing , logistics
, transport management .
Purchase related standard documentation , terms , glossary and other
procedures adopted by organisation
role of an organisation . Procurement or purchasing involves acquiring
products, services and works from vendors or internal source.Sourcing is the
process of identifying, evaluating and negotiating with suppliers and service
providers. This includes the entire vendor selection process as well as
contract management. It opens doors to a rich supply of raw materials,
facilities, and labors at lower prices, thus reducing costs and increasing
competitiveness in markets around the world. The presence of
foreign-produced finished manufactures compels domestic industries to be
innovative and efficient, both of which are keys to profitability and longevity.
Purchasing Desk .Com highlights role of procurement in cost reduction
strategies of an organisation in areas like inventory , warehousing , logistics
, transport management .
Purchase related standard documentation , terms , glossary and other
procedures adopted by organisation
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