For this follow up the purchase order after waiting for some reasonable time is essential. The priority of follow-up operations should be given according to the importance or classification of items e. Invoices received from suppliers are checked and verified with order specification 6.
Delay in availability of requisitioned material should be conveyed to concerned departments in time. To maintain records regarding suppliers , their performance in past, products with them, probable delivery period for each order etc. To dispose off outdated and scrapped items. Control stores operation of receiving the items from vendors and issuing it to concerned department of the organisation.
To handle damages and demurrage claims. Purchasing according to requirements. Purchasing for some definite future period. This method is appropriate for those items which are not of regular and common use in the production process. These items are generally not stored in inventories. And Purchasing department should keep a record of reliable and trustworthy suppliers who were sincere to the organisation in past.
This method of purchasing is generally used for those items, which are regularly consumed, but the consumption is comparatively low and the price changes for these items are not much. Purchase of goods usually in smaller quantities or in an emergency without contract or negotiations. When purchasing is done purely from the point of view of taking advantage of a speculated rise in price of the commodity.
The items may be those that are needed for internal consumption but the qty. In this, the purchase department enters into agreement with various suppliers to supply the items at some future period periodically. In contract purchasing, a purchaser agrees to buy goods to be paid for in a series of installments, each comprising a proportion of the capital and an interest element.
After a final payment, legal ownership passes to the user. The purchasing is scheduled according to the requirements of the various departments or of the organisation. Market exploration is made to locate the goods and services of desired quality and quantity at the reasonable price.
Potential suppliers are identified from catalogues, quotations and past records. Purchase order in specified form is prepared and sent to the approved suppliers.
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