The Purchase Department

Procurement process involves development of reliable suppliers who will supply as per manufacturing programme (product mix) to be carried out in response to market changes. There could be urgent demand for the products for which the necessary inputs will also be required urgently. The requirements shall be rapidly fulfilled by suppliers and logistics providers as they form important components of supply chain networks. 

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Company practices differ in who does purchasing research and how it is done. Several patterns are evident. The chemical buyer is responsible for preparing the purchase profiles, possibly with in-house Hbrary assistance. Market research analysts are assigned to the purchasing department and prepare some or all of the profiles needed. Outside consultants are used to prepare some of the purchase profiles or as a check on internal procedures and conclusions. 

However, just asking the purchasing department for a list of companies previously used for tolling is not enough. Prior successful use of a given firm is not adequate qualification for future tolls, especially if the new toll involves a different product. At this point in the selection process the five facets mentioned in the previous chapter come into play ... 

All exceptions must have the prior approval of the purchasing department. 

The invoice was sent as usual to the purchasing department for payment. The young clerk who dealt with it realized that oxygen had been delivered to a unit that had never received it before. She told her supervisor, who telephoned the plant, and the eiTor came to light. 

Prepare detailed process and mechanical specifications for developing proposals for purchase by the purchasing department. 

The manner in which orders are placed varies from one laboratory to another. In a large organization, the laboratory operator wall prepare a requisition, which goes to the purchasing department, often via a department head for approval. Copies of the requisitions should be kept in the laboratory, which should also receive copies of actual purchase orders. In a small laboratory the operator may do the ordering himself. 

Every item is checked off on the packing list, which will become an authorization for payment, and also on the master list. Usually, the packing list is sent to the purchasing department after an authorized person has signed it. 

Maintenance engineers on the team write similar manuals discussing the repair, cleaning, lubrication, and operation of all the equipment. They will also decide what spare parts and tools must be available for startup, and make certain these are ordered by the purchasing department. 

It determines acceptance or rejection of raw materials and feedstocks and/or assesses their market value for the purchasing department. It... 

Since the QA/QC laboratory is concerned with the quality of the firm s products, it can influence product costs and revenues (the cash flow associated with the products). It determines acceptance or rejection of raw materials and feedstocks and assesses their market value for the purchasing department. It frequently initiates the processing of claims against vendors providing raw materials which are below grade specification but are nevertheless used. The lab also may be responsible for process monitoring to determine process parameters which minimize the production of scrap or off-grade product. 

Training for the staff of the companies on the concept of ChL. It is recommended to include staff from the environment and quality control department, the purchasing department, the legal department (if any), technical and operational staff, and others. 

It is necessary for all suppliers to arrange their visits through the purchasing department. The purchasing department will assist in directing suppliers to the engineers involved in the various aspects of... 

The purchasing department generally gives consideration to any supplier who makes a contribution towards improving our products. However, the buyer has an obligation to obtain competitive quotations except under unusual and justifiable circumstances. This cannot be accomplished without the aid of competitive bidding. This is not to say that the lowest bidder is always awarded the business, it is dependent on total economics. 

Note that two of the four possible critical failures are human. The operator fails to check the level indicator before unloading, or the purchasing department orders a new supply before the reorder level is reached, reached. 

The group of people at the client company who are involved in the decision on which of the several (often very many) fragrances submitted for a product launch or relaunch should be finally adopted is even more varied. It may include the purchasing department, development chemists, evaluation panels attached to the development laboratories, marketing, in-house evaluation panels, the market researchers who design and interpret consumer tests, even top management—or, as the rumor often goes, the president s wife or secretary. 

Begin any search by developing a list of requirements that a potential contractor must satisfy in order to be considered. Provide this list of requirements to the purchasing department. The most fortunate situation that can occur in the selection process is finding that the Purchasing Department is already employing a contract manufacturer with the capabilities to perform the required task. 

When the artwork is completed it must be authorised for use by the originator, regulatory affairs, marketing, quality assurance and packaging to ensure that all the parameters are in accordance with requirements. The completed colour separated artwork should be sent, by the purchasing department, along with the remainder of the label specification, to an audited authorised printer. 

Ensuring availability and continuity of supply raw materials is fundamental to a well-organised business. Well in advance of going to market, the Purchasing Department would be advised of the formula for Eve , and the estimated volume requirement over the first few years. A plan would be drawn up with forecast of need over the months ahead, allowing... 

Prom an engineering viewpoint, the most direct way to estimate pollution emissions from an industrial plant is by mass balance. The concept is mass in = mass out —that is, everything the purchasing department buys and is delivered to the plant must somehow leave the plant, whether within the manufactured product as solid waste to a landfill as air emissions either through a stack or vent or as liquid waste either to an on-site treatment plant or to the sewer and the municipal wastewater treatment plant. 

The purchasing department placed orders as requirements became necessary, and marketing, responding to customer demand, interfaced with various distributors and retailers and attempted to satisfy this demand. Orders were periodically given to suppliers and their suppliers, who had no visibility of demand at the point of sale or use. Satisfying the customer often required expedited operations throughout the supply chain as member firms reacted to unexpected changes in demand. 

For each overhead department, it is necessary to define the particular activities that drive the functions within that department. For example, in 1999 the purchasing department (see panel A of Table 7) incurred total costs of 5 million. Cost drivers were the purchasing of raw materials, the purchasing of components, and vendor relations. Appropriate allocation measures for these activities are the number of orders for purchasing, and the number of vendors for vendor relations. Levels of those activities for each auto model are indicated in panel B. In turn, these levels lead to the total allocated costs for each auto model in panel C. 

The purchasing managers were the individuals who interacted with the suppliers, and they contacted the sales representatives or the order desks. This was the only point of contact between the compatty and suppliers. Requests for new or replacement materials and parts depended on the purchasing department to locate a supplier and place orders. Purchasing managers drove their operations under a system known as purchase price variance. 

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