Purchasing and Stores Management

Purchasing Objective:

• Ensure continuous material supply.
• Reduce finished goods cost.

Key to Manufacturing Success:

Procure materials with the 10 'R's:

• Right Quality
• Right Quantity
• Right Source
• Right Time
• Right Price
• Right Place
• Right Mode
• Right Manner
• Right Contract
• Right Attitude

Purchasing Procedure:

Purchasing follows a structured process to procure goods:

1. Need Recognition: Identifying required materials.
2. Supplier Selection: Choosing suitable vendors.
3. Order Placement: Formalizing purchase requests.
4. Order Follow-up: Tracking delivery progress.
5. Receiving/Inspection: Verifying incoming goods.
6. Invoice Payment: Settling accounts with suppliers.
7. Record Maintenance: Documenting transactions.
8. Vendor Relations: Maintaining supplier partnerships.

Store Management:

Store management ensures materials are handled and maintained effectively. It includes:

• Physical Control: Securely managing materials.
• Preservation: Protecting materials from damage.
• Obsolescence Reduction: Timely disposal of outdated stock.
• Record Keeping: Maintaining accurate inventory data.
• Proper Location: Efficiently organizing storage spaces.
• Stock Verification: Regularly checking physical stock against records.