7/30/2019 Purchase Policy and Procedure by Puruhutjit Surjit

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Prepared by -Puruhujit Surjit,Surjitpj@gmail.com

Purchase procedures:

The system of internal control relating to purchases should be very carefullyevaluated.

Proper buying procedures require that there is a clear-cut definition of functions and authority between;

(a) Requisition of supplies(b) Approval of indent(c) Placing of orders,(d) Inspection and recording of goods when received,

Requisition of Supplies

User department should raise an Indent with full description of the materialand quantity required with the approval of Head of the Department in thecase of medical supply and pharmacy only the storekeeper or other specifiedOfficer should be authorized to issue requisitions with the approvals of thehead of the department.

Justification form with proper approval should be enclosed with Indent forcapital goods and specific make / model of an item if any.In case of medical Equipment biomedical department should interact withuser department to develop technical spec.

Approval of Indent

Indent should be forwarded to Purchase Department after duly approved byChief Operating officer.

In case of capital Goods, the above indent will be put for approval of Purchase committee.

Placing of orders

1. The buying section of purchase department should then take steps toinvite tenders or quotations.

2. Purchase Department should obtain the Quotations from 3 or morevendors and make a comparative analysis by keeping finance; OFAand the user department in loop in the case of both open and closetender/quotation.(note-Quotation of stockiest/dealer should besupported by the pricelist of the manufacturing company)

3. In case of medical equipment biomedical department should do atechnical comparative study.

4. A comparative table of quotations received should be prepared andnormally the lowest quotation should be approved. When lowest

7/30/2019 Purchase Policy and Procedure by Puruhutjit Surjit

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Prepared by -Puruhujit Surjit,Surjitpj@gmail.com

quotations or tenders are not accepted, reasons for the same shouldbe recorded.

5. Purchase Department should call 3 or more vendors who arecomparatively feasible, for negotiation and finalize a vendor bykeeping finance and OFA in loop.

6. Where on account of small value of the purchase to be made, non-availability of the goods in the open market or other reasons, regularquotations cannot be called for; proper enquiries as regards ratesshould have been made before placing an order.

7. All orders for purchases should be issued from the printed orderbook/file or it should be auto generated from the system, which shouldcontain all the terms and conditions subject to which supplies are to bemade. In particular, prices and terms of delivery and payment shouldhave been specifically mentioned.

8. Purchase department will raise the purchase order in quadruplicateand duly signed by the authorized person

9. First copy of P.O to the Vendor, Original copy to finance dept. secondcopy to the user department and other copy to be maintained byPurchase Department for their reference

10.Vendor will supply the materials as per the terms and conditionsagreed in the P.O.

Inspection and recording of goods when received

Goods when received should be immediately inspected as regards quantities,quality and condition etc by the receiving section and the purchase qualitycoordinator . Goods received should be entered into the Goods Inward

Register. The storekeeper should also prepared a Goods receipts Note,copies of which should be sent to the purchase department and to thefinance department. The goods receipts note should be issued from theprinted goods receipt note book with pre-numbered folios or it should be autogenerated from the system.

Note: Purchase committee consists of Chairman, Chief Executive Officer,Chief Operating office, Medical Director, Chief finance officer, OFA withvarious levels for approval. The committee should be chaired by thePurchase Manager