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Unit 4: Purchasing Management

2. From whom purchase should be made? Notes
3. At what rate?
4. When the material can be delivered?
5. Has it been delivered?

6. Whether payment has been made?
For each item of purchase, a separate card is maintained to keep record of a purchase order till
receipt of material. When requisitioner sends an indent; it is entered in the card along with the
details of enquiry and quotations and last date of receipt, etc.
When the order is placed then details of the purchase order are recorded in another card, such as:
1. Order Number

2. Date
3. Quantity
4. Rate accepted
5. Delivery Period

6. Name of the supplier
This above information is very useful, if a repeat order is required to be placed.

Self Assessment

Fill in the blanks:
8. Selecting the supplier is the responsibility of ……………… department.
9. ………………….. must be prepared to assist in or lead all discussions on under quantities,
and give advice on imponderables–such as anticipated services from the supplier-which
can affect the decision on the choice of vendor.
10. Scientific Purchasing means procuring materials in a way that …………….. the overall
cost of the product.

11. Quality of ……………… for purchased items refers to the quality specified by the company’s
design department in the form of specifications.
12. Quality of ……………….. refers to the extent to which the goods and services purchased
compiles with the specification laid down.
13. To determine the quality of conformance of purchased items ……………… plans are used.

4.6 Purchasing Policy and Procedure

Every authority delegated with the financial powers of procuring goods in public interest shall
have the responsibility and accountability to bring efficiency, economy, and transparency in
matters relating to public procurement and for fair and equitable treatment of suppliers and
promotion of competition in public procurement.
The procedure to be followed in making public procurement must conform to the following
yardsticks:
 The specifications in terms of quality, type etc., as also quantity of goods to be procured,
should be clearly spelt out keeping in view the specific needs of the procuring

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