Purchase Standard Procedure

1. INDENTS (purchase order indent form): First step for any purchase activity is a clear indent from the user departments. The indent should have authorized signatory .Its should clearly mention the quantity, delivery time and specifications.

2. QUOTATION: Purchase executive then floats inquiry as per the details given in the indents. It could be given to one vendor or to any numbers as stipulated in their organizations standards, the best practices is to get one alternate source. In case of emergency or in vendor’s reluctance to send quotation telephonic or verbal inquiry could be floated. The inquiries are sent with clear instruction to vendors for response with in stipulated time .Vendors then submit their quotation to the purchase department.

3. BID SHEET OR COMPARISON SHEET: Comparison is then made for the best vendors taking into account various factors such as

a. Price

b. Quality

c. Delivery time

d. Payment terms

e. Warranty

f. After Sales Service.

4. NEGOTIATIONS: Then Vendors are called for negotiations & further clarification and finalization of terms and condition of contracts.

5. PURCHASE ORDER: Purchase orders are then generated for the agreed upon terms and conditions .Purchase order are then either faxed or couriered to the suppliers with clear terms and conditions.

AMENDMENT: There is a provision to amend purchase order for terms and conditions due to some unforeseen circumstances which are beyond vendor’s control.

6. FOLLOW UP: After orders are faxed the purchase executive monitors orders for delivery.

7. VENDOR DEVELOPMENT: Most important part of any purchase executive is to upgrade vendor master with new vendors which are selected for reasons like alternate supplier for critical items or under cost reduction strategies.