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:
- Need Recognition: Identifying required materials.
- Supplier Selection: Choosing suitable vendors.
- Order Placement: Formalizing purchase requests.
- Order Follow-up: Tracking delivery progress.
- Receiving/Inspection: Verifying incoming goods.
- Invoice Payment: Settling accounts with suppliers.
- Record Maintenance: Documenting transactions.
- 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- Obsolescence Reduction: Timely disposal of outdated stock.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.