Responsibilities, Function & Objectives of Purchasing

8/9/2019 Responsibilities, Function & Objectives of Purchasing

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Responsibilities, Function &Responsibilities, Function &

Objectives of PurchasingObjectives of Purchasing

S.C. SEHGALS.C. SEHGAL

MATERIALS MANAGEMENTMATERIALS MANAGEMENTCONSULTANTCONSULTANT


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RESPONSIBILITIES OF PURCHASINGRESPONSIBILITIES OF PURCHASING

Provide all materials and services thatProvide all materials and services thatorani!ation decided not to "rovideorani!ation decided not to "rovide

internall#.internall#.

This involvesThis involves

$evelo" and select as re%&ired'$evelo" and select as re%&ired'

vendors' ca"a(le o) meetinvendors' ca"a(le o) meetinorani!ation*s needsorani!ation*s needs


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Pre"are + sin all PO,Contracts so thatPre"are + sin all PO,Contracts so thatneeds o) orani!ation and all otherneeds o) orani!ation and all other"ertinent terms + condition related to"ertinent terms + condition related to

"&rchase are clearl# &nderstood (#"&rchase are clearl# &nderstood (#s&""lier and doc&menteds&""lier and doc&mented

Monitor s&""liers "er)ormance andMonitor s&""liers "er)ormance and

related orani!ation activitiesrelated orani!ation activitiesReneotiate or terminate PO,ContractReneotiate or terminate PO,Contract

as re%&ired.as re%&ired.


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Provide in)ormation to and "artici"ate inProvide in)ormation to and "artici"ate in

Manaement "lannin meetin onManaement "lannin meetin on

s&(-ect related to materials s&""lies.s&(-ect related to materials s&""lies.

Protect orani!ation )rom allProtect orani!ation )rom all

&nnecessar# and &na&thori!ed&nnecessar# and &na&thori!ed

commitments.commitments.


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$is"osal o) all o(solete materials'$is"osal o) all o(solete materials'

e%&i"ments or scra" that is no lonere%&i"ments or scra" that is no loner

re%&ired )or orani!ations o"erationre%&ired )or orani!ations o"eration

S#stematic Eval&ation o) vendors*S#stematic Eval&ation o) vendors*

"er)ormance (ased &"on "arameters or"er)ormance (ased &"on "arameters orattri(&tes as necessar# )or orani!ationattri(&tes as necessar# )or orani!ation


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OBJECTIVES OF PURCHASINGOBJECTIVES OF PURCHASING

in Materials + Servicesin Materials + Services

/ Riht PriceRiht Price

/ Riht 0&alit#Riht 0&alit#

/ Riht 0&antit#Riht 0&antit#

/ Riht So&rcesRiht So&rces

/ Riht time + PlaceRiht time + Place

1no2n as 3 Rs o) "&rchasin1no2n as 3 Rs o) "&rchasin


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Objectives of Purc!si"#$ %erive& fro' (Objectives of Purc!si"#$ %erive& fro' (

Rs of Purc!si"#Rs of Purc!si"#

Maintain Contin&it# o) s&""lies toMaintain Contin&it# o) s&""lies to

s&""ort "rod&ction sched&les&""ort "rod&ction sched&le

Maintain Riht 0&alit# o) "&rchasedMaintain Riht 0&alit# o) "&rchasedmaterials i.e. materials meetinmaterials i.e. materials meetin

)&nctional needs e))ectivel#)&nctional needs e))ectivel#


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Proc&re materials at lo2est "ossi(leProc&re materials at lo2est "ossi(lecost consistent 2ith %&alit# and servicecost consistent 2ith %&alit# and servicere%&irementre%&irement

Avoid d&"lication o) "&rchases res&ltin inAvoid d&"lication o) "&rchases res&ltin in2aste and o(solesce.2aste and o(solesce.

Maintain orani!ations com"etitiveMaintain orani!ations com"etitive"osition in controllin "&rchasin and"osition in controllin "&rchasin andother related cost.other related cost.


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Create ood2ill )or orani!ation thro&hCreate ood2ill )or orani!ation thro&h

cordial and health# (er/ seller relationscordial and health# (er/ seller relations

1ee" investment in inventor# at o"tim&m1ee" investment in inventor# at o"tim&mlevel meetin (oth )inancial + o"eratinlevel meetin (oth )inancial + o"eratin

re%&irements.re%&irements.

$evelo" relia(le so&rces o) s&""lies$evelo" relia(le so&rces o) s&""lies

incl&din alternates )or critical in"&ts )orincl&din alternates )or critical in"&ts )or

strateic reasonsstrateic reasons


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So&rce develo"ment aimin red&ction o)So&rce develo"ment aimin red&ction o)de"endence on OEM + Im"ort S&(stit&tionde"endence on OEM + Im"ort S&(stit&tion

Red&cin Lead/time/ enterin lon termRed&cin Lead/time/ enterin lon termcontract )or re&lar &se itemscontract )or re&lar &se items

$evelo" "olicies and "roced&res )or eas#$evelo" "olicies and "roced&res )or eas#accom"lishment o) "&rchasin )&nction ataccom"lishment o) "&rchasin )&nction ato"tim&m o"eratin costso"tim&m o"eratin costs


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Eval&ate "er)ormance o) s&""liersEval&ate "er)ormance o) s&""liersCriticall#Criticall#

Interatin "&rchasin )&nctions 2ithInteratin "&rchasin )&nctions 2ithother de"artments to attain orani!ationalother de"artments to attain orani!ationaloals.oals.

Train and develo" a com"etentTrain and develo" a com"etent"ro)essional team o) "&rchasin "ersonnel"ro)essional team o) "&rchasin "ersonneland ma4eand ma4e "&rchasin a Pro)it"&rchasin a Pro)it Centre.Centre.


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Purchasing FunctionsPurchasing Functions

/ To s&""ort Orani!ation*s o"eration 2ithTo s&""ort Orani!ation*s o"eration 2ith&ninterr&"ted )lo2 o) materials and&ninterr&"ted )lo2 o) materials andservicesservices

/ To ( com"etitivel# 54ee"in a(reast o)To ( com"etitivel# 54ee"in a(reast o)mar4et condition and environment andmar4et condition and environment and(in at riht "rice6 and(in at riht "rice6 and

// 2isel# 5a constant search )or (etter2isel# 5a constant search )or (etterval&e in terms o) %&alit# and services6val&e in terms o) %&alit# and services6


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/ To ens&re to ( "rod&cts )or deliver# atTo ens&re to ( "rod&cts )or deliver# at

riht "lace and in riht %&antit# i.e.riht "lace and in riht %&antit# i.e.

"er)orm )&nctional needs e))ectivel#"er)orm )&nctional needs e))ectivel#

/ To 4ee" investment in inventor# atTo 4ee" investment in inventor# at

o"tim&m level/ meetin )inancialo"tim&m level/ meetin )inancial

re%&irement o) 2or4in ca"ital andre%&irement o) 2or4in ca"ital and

o"erational re%&irement o) &ninterr&"tedo"erational re%&irement o) &ninterr&"ted

"rod&ction"rod&ction


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/ To develo" relia(le incl&din alternateTo develo" relia(le incl&din alternateso&rces o) s&""lies )or critical items )orso&rces o) s&""lies )or critical items )orstrateic reasonsstrateic reasons

/ To strive hard )or Im"ort S&(stit&tion andTo strive hard )or Im"ort S&(stit&tion andim"rove availa(ilit#im"rove availa(ilit#

/ To develo" ne2 so&rces o) s&""lies )orTo develo" ne2 so&rces o) s&""lies )orhih cons&m"tion val&e s"ares/ red&cinhih cons&m"tion val&e s"ares/ red&cinde"endenc# on OEMde"endenc# on OEM


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/ Red&cin Lead/time/ enterin lon termRed&cin Lead/time/ enterin lon termcontract )or re&lar &se itemscontract )or re&lar &se items

/ To develo" ood and contin&in (&sinessTo develo" ood and contin&in (&sinessrelation 2ith s&""lier' ens&re timel#relation 2ith s&""lier' ens&re timel#"a#ments and treat them as (&siness"a#ments and treat them as (&siness"artners"artners

/ Eval&ate "er)ormance o) s&""liersEval&ate "er)ormance o) s&""liersCriticall#Criticall#


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/ $evelo" "olicies and "roced&res )or eas#$evelo" "olicies and "roced&res )or eas#accom"lishment o) "&rchasin )&nction ataccom"lishment o) "&rchasin )&nction ato"tim&m o"eratin costso"tim&m o"eratin costs

/ Interatin "&rchase )&nctions 2ith otherInteratin "&rchase )&nctions 2ith otherde"artments to attain orani!ational oalsde"artments to attain orani!ational oals

/

Train and develo" a com"etentTrain and develo" a com"etent"ro)essional team "&rchasin "ersonnel"ro)essional team "&rchasin "ersonneland ma4e "&rchasin a Pro)it Centre.and ma4e "&rchasin a Pro)it Centre.

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Responsibilities, Function & Objectives of Purchasing