Steps in procurement of material

Question

Write down the steps in procurement of material?

Answer 1

The steps in procurement of material are illustrated below:

Purchase Requisition is a sign to the purchase department to purchase convinced material needed for the production. Particulars shown in the purchase requisition

- Material is to be purchased

- When it is need

- How much is to be purchased

- Assortment of Source of Supply

- Single Tender

- Limited Tender

- Open Tender

- Global Tender

- Purchase arrange

- Depiction of Materials to be supplied

- Amount to be supplied

- Trade and Cash discount Rates at which materials are supplied

- Extra charges such as Sales tax, Excise duty, packing charges, assurance Instructions in respect of delivery

- Assurance clause

- Inspection clause

- Technique of settlement of disputes

- Terms of payment Inspection and Receipt

- After the receipt of materials, inspection of the material is complete. Inspection of materials means that the amount really received is compared with the quantity ordered; as well the quality of the material is inspected.

- Statement received from the supplier is compared together with the purchase order; inspection note and goods received note.