Responsibilities, Function &

Objectives of Purchasing
S.C. SEHGAL
MATERIALS MANAGEMENT
CONSULTANT

RESPONSIBILITIES OF PURCHASING
Provide all materials and services that
organization decided not to provide
internally.
This involves
Develop and select as required,
vendors, capable of meeting
organizations needs

RESPONSIBILITIES OF PURCHASING
Prepare & sign all PO/Contracts so that
needs of organization and all other
pertinent terms & condition related to
purchase are clearly understood by
supplier and documented
Monitor suppliers performance and
related organization activities
Renegotiate or terminate PO/Contract
as required.

RESPONSIBILITIES OF PURCHASING
Provide information to and participate in
Management planning meeting on
subject related to materials supplies.
Protect organization from all
unnecessary and unauthorized
commitments.

RESPONSIBILITIES OF PURCHASING

Disposal of all obsolete materials,

equipments or scrap that is no longer
required for organizations operation

Systematic Evaluation of vendors

performance based upon parameters or
attributes as necessary for organization

OBJECTIVES OF PURCHASING
Buying Materials & Services
-

Right
Right
Right
Right
Right

Price
Quality
Quantity
Sources
time & Place

Known as 5 Rs of purchasing

Objectives of Purchasing- Derived from 5

Rs of Purchasing

Maintain Continuity of supplies to

support production schedule
Maintain Right Quality of purchased
materials i.e. materials meeting
functional needs effectively

Objectives of Purchasing- Derived from 5

Rs of Purchasing
Procure materials at lowest possible
cost consistent with quality and service
requirement

Avoid duplication of purchases resulting in

waste and obsolesce.

Maintain organizations competitive

position in controlling purchasing and
other related cost.

Objectives of Purchasing- Derived from 5

Rs of Purchasing

Create goodwill for organization through

cordial and healthy buyer- seller relations

Keep investment in inventory at optimum

level meeting both financial & operating
requirements.

Develop reliable sources of supplies

including alternates for critical inputs for
strategic reasons

Objectives of Purchasing- Derived from 5

Rs of Purchasing

Source development aiming reduction of

dependence on OEM & Import Substitution

Reducing Lead-time- entering long term

contract for regular use items

Develop policies and procedures for easy

accomplishment of purchasing function at
optimum operating costs

Objectives of Purchasing- Derived from 5

Rs of Purchasing

Evaluate performance of suppliers

Critically

Integrating purchasing functions with

other departments to attain organizational
goals.

Train and develop a competent

professional team of purchasing personnel
and make purchasing a Profit Centre.

Purchasing Functions
-

To support Organizations operation with

uninterrupted flow of materials and
services

To buy competitively (keeping abreast of

market condition and environment and
buying at right price) and
-

wisely (a constant search for better

value in terms of quality and services)

Purchasing Functions
-

To ensure to buy products for delivery at

right place and in right quantity i.e.
perform functional needs effectively

To keep investment in inventory at

optimum level- meeting financial
requirement of working capital and
operational requirement of uninterrupted
production

Purchasing Functions
-

To develop reliable including alternate

sources of supplies for critical items for
strategic reasons

To strive hard for Import Substitution and

improve availability

To develop new sources of supplies for

high consumption value spares- reducing
dependency on OEM

Purchasing Functions
-

Reducing Lead-time- entering long term

contract for regular use items

To develop good and continuing business

relation with supplier, ensure timely
payments and treat them as business
partners

Evaluate performance of suppliers

Critically

Purchasing Functions
-

Develop policies and procedures for easy

accomplishment of purchasing function at
optimum operating costs

Integrating purchase functions with other

departments to attain organizational goals

Train and develop a competent

professional team purchasing personnel
and make purchasing a Profit Centre.