Purchasing And Inventory Control

Purchasing And Inventory Control

Purchasing is a basic function in the material management department. Professional expertise is required to be exercised to obtain materials of proper quality and in proper quantity. The basic purpose of purchasing is to ensure a continuous flow of raw materials of the right quality, right quantity, and right price from the right sources. Another objective of purchasing is the avoidance of duplication and wastage concerning various items purchased. Centralized purchase by medical stores procures the drug on behalf of all the departments and helps in getting quality drugs at cheaper rates. Some important terms are explained below. 

• Right Quality: Right quality means the quality which is available according to the particulars mentioned in terms of grades, brands or trade names, physic-chemical characteristics, etc. The quality must describe even the national standards to the extent it is possible. 

• Right Quantity: Right quantity is an important parameter of purchasing for a continuous supply of raw materials. “Economic Order Quantity”, or any other technique may be followed to avoid a shortage.

• Right Price: The term right price means consistent matching with the quality of the drug.  The general tender system is followed in hospitals and the lowest bidder is chosen for supplying the order. 

• Right Source: The supplier should be dependable and capable of supplying as per requirements from time to time. The selection of a supplier requires consideration of various factors. 

• Right Time: The purchase department should have lead time information for all products.  Lead time is the total period between the placing of an order and receipt of material while doing purchases. The purchase committee should consider emergencies like floods, strikes, accidents, etc.

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