Stock procurement

[Former Member]

Hi,

How the sourcing, procurement and stores management happen in the company.

Can someone provide me the data regarding this cycle?

Thanks.

[Lakshmipathi]

Dear Sree

Mainly these activities will be carried out by Stores / Materials Department.

In a manufacturing industry, there would be various products manufactured and sold. What the stores / purchase people will first do is that they will identify fast moving items (that are sold in huge volume) and fix a maximum-minimum stock level which should be maintained at their stores.

They will keep on monitoring the stock level and as and when, it reaches the minimum stock level, they will start procuring and store it. At any point of time, production will not be stopped for want of raw material.

Similarly for slow moving items also, they will fix some minimum stock level but the percentage would be very minimal.

To control and steamline all these activities only, we normally adopt [Supply Chain Management] which is nothing but continuous monitoring right from procuring of raw materials from various vendors, manufacture and despatch to end customer.

In fact, this is only a brief explanation. We can explain this scenario in couple of pages also.

thanks

G. Lakshmipathi

[Former Member]

Hi,

Basically all thses activities in any company are done by the materials & stores department.

Normally materials are stocked based on their consumption pattern.

Whenever material on shop floor goes short, an indent / requisition is generated by the production people.

As per this, materials people will float purchase order or tender in some cases. Some times for capital procurement where huge expense is incurred, a capex, or capital purchase order is raised.

Finally when the material arrives, it is inwarded against the purchase order into storage location or warehouse if managed.

Lastly it is issue to the production dept based on there requirement.

Hope this helps you.

Regards,

Dhananjay