Procurement Handbook

Every business entity has got a procurement department or a executive who handles all purchases depending upon The size of The

organisation .Big organisations have multilocational purchase unit or in some case purchases are made from central unit .

Purchase deptt plays a very critical and crucial role in smooth functioning of organisation

The Head of Purchase deptt is called Chief Procurement Officer(CPO) .Now days CPO has considerable say in any company policy.

Purchase deptt primary role is to get material at right cost , from right buyer , of right quality and in right time .

Major role of purchase are following

• Raw Material , Ingredients , fuel buying
• Service contract
• Vendor Development
• Vendor Analysis
• Value Analysis
• Annual Contract
• Capital Purchases .
• Maintenance and Repair contracts
• Payments to vendor .
• Inventory control
• Negotiations & long term contracts
• scrap management
• Getting licenses for storages etc.ie liasioning with govt deptts
• Imports
• Maintaining and Updating Vendor Master.

Standard procedure for any purchase deptt