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Functions of Purchase depatt

1 . Receiving indents
2. Assessment of demand or description of need
3. Selection of sources of supply
4. Receiving of quotation
5. Placing order
6. Making delivery at the proper time by following up the orders.
Verification of invoices
8. Inspection of incoming materials
9. Meeting transport requirements of incoming and outgoing materials
10. Maintaining purchasing records and files
11. Reporting to top management
12. Developing coordination among other departments
13. Creating goodwill of the organization in the eyes of the suppliers.

 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.
Objectives of storekeeping are:

1. To protect stores against losses of goods and in turn help in profit making.
2. To keep goods always ready for delivery/issue in any circumstances.
3. To provide maximum service at reasonable cost.
4. To avoid over stocking and under stocking and maintain demand and supply.
5. To facilitate perpetual inventory.

Function of storekeeping:

 Receipt of material into storage: when materials come for storage then storekeeper has to
unload it, inspect it and then move materials to stores. The storekeeper has to classifies the
materials, stores at appropriate places and record the receipts in proper books in order to
remove errors.
 Record keeping:The stores records should be maintained in an efficient and orderly manner
so that materials can be easily located and information can be obtained for various
departments.
 Storage of materials: The stores should provide maximum protection and safety and
accessibility and utilise minimum space. Suitable storage device should be installed.
 Maintaining stores: To keep the stores in the desired condition over a period of time depends
on the nature of the materials, length of time in storage, rates of deterioration. Special
covering or periodic lubrication is necessary to prevent damage due to atmospheric
conditions.
 Issuing stores: This function should be performed most efficiently, promptly and accurately.
All issues should be properly recorded. All issues should be duly authorised and procedures
laid down should be duly followed.
 Co-ordination with material control: The storekeeper is partly responsible for such co-
ordination. Much depends on the type of production, size of the company,
the organisation structure, etc.
 Ensure that all transaction is ensured in the Bin Card and that the Bin Card is up to date.
 All items should keep in its proper place.
 Maintenance of stores at required levels.
 Neatness in stores to facilitate physical verification.
 Co-ordination and supervision of staff in the stores department.
 Periodic review of various scales, measuring instruments, conversion ratios etc.
 Protect stores from fire, rust, erosion, dust, theft, weather, heat, cold, moisture and
deterioration etc.