PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Purchase department carries out of the procurement of all indigenous items like raw materials, machinery, spares and instruments .In every company purchase department is the major department. purchasing is the is the most important function of Material management. A purchasing department may include purchasing managers, buyers and agents. Head of this department is usually known as purchase manager. PURCHASE DEPARTMENT IN SUNSHINE Sunshine industries have a Purchase Department, which is entrusted with the important function of purchasing the required materials for the entire organization.

STRUCTURE DEPARTMENT

OF

PURCHASE

PARTNERS
MANAGING PARTNER

PURCHASE MANAGER

PURCHASE PROCEDURE

STORE KEEPER

In order to perform purchase function properly, the purchase department in sunshine follows a particular procedure to suit its requirements. The basic steps in the purchasing procedure followed by sunshine. 1. Receiving purchase requisitions The first step in the purchase procedure is the receipt of purchase requisitions or indents for materials by the purchase department. Requests for purchase are made to the purchase department on a form known as purchase requisition. 2. Exploring the sources of supply The purchase officer is always in touch with various sources of supply of different materials. In case of bulk requirements, quotations may be invited from various suppliers in the form of tenders. 3. Placing of order After choosing the supplier, the purchase department will prepare a purchase order for the supply of stores. It includes name of suppliers, price of materials, qualities of materials, name of purchase, terms and conditions. 4. Follow- up Follow up of purchase order is needed to ensure timely delivery of the materials for which the purchase order has already been placed. It involves regular communication with the supplier until the delivery has been made. 5. Receipt of materials The task of receipt and inspection of materials may be done by either the purchase or the stores department. 6. Inspection of goods received

Efficient purchasing demands that there should be proper verification and inspection of the goods received. It is only after the inspection that goods should be carefully stored. 7. Checking of purchase invoices When a supplier sends goods to buyer, he usually sends along with them and invoice for the goods. An invoice means a statement giving the description, quality, price, mode of packaging, means of transportation, etc of the goods.