PRESENTATION

ON
PURCHASE MANAGEMENT
SUBMITTED TO
SUBMITTED BY
MRS.SHRUTI MAM

INTRODUCTION
Purchasing

is the first phase of

material management.
Purchasing means procurement
of goods and services from some
external agencies.
Purchasing is an enterprise has
now become a specialized
function.

PURCHASING
MANAGEMENT
The objective of the purchasing
function is to ensure continuity of
supply of raw materials , sub
contracted items and spare parts
and at the same time reduce the
ultimate cost of the finished
goods.

PRINCIPLES OF PURCHASING
MANAGEMENT
To

purchase the right quality of

materials.
To purchase the materials in right
quantities.
To make the materials available
at right time.
To purchase the materials at right
price.
To purchase the materials from
the right
source.

PURCHASING PROCEDURE
Recognition

of the need.
Selection of the supplier.
Placing the purchase order.
Follow -up of the order.
Receiving and inspection of the
materials.
Payment of the invoice.
Maintenance of the records.
Maintenance of the vendor
relations.

PURCHASE SYSTEMS
Pre-purchase system:This includes making requisitions , requirement
programmes , selection of suppliers , obtain
quotations and evaluating them.

Ordering system:Once the decision on supplier and the rates are

finalized , the order is placed with the selected
supplier. The next task is to place order.
1. Purchase order reference number.
2. Description of the materials and detailed
specifications

3.Quantity required and delivery schedule.

4.Price and discounts.
5.Shipping instructions.
6.Location where the materials are to be
shipped.
7.Signature of the materials manager.
8.Detailed terms of conditions.

Post purchase system:-The

activities which are included under this
system are follow-up procedures, receipt
and checking invoices.

IMPORTANCE OF PURCHASING
MANAGEMENT
Delivery

in time.
Increase in profitability.
Good coordination in different
departments.
Optimum utilization of resources.

THANK YOU