Centralised purchase policy; Choice trading corporation ltd.

Abstract

The Centralised Purchase Policy is based on the Central Purchase And Supplies Department (CPSD) being responsible for all the purchases of the Choice Group except for seafood purchases which will be done on a spot basis. The Central Purchase and Supplies Department will be headed by VicePresident - Commercial who will have a Chief Materials Manager reporting to him. The Purchase Executives will be reporting to the Chief Materials Manager and there will be one Purchase Executive handling one Division. The concerned stores in the respective Divisions will be responsible for raising the Material Purchase Requisition to enable the CPSD to place orders and obtain materials in time. Purchase of Capital goods requires the sanction of the Management in the Capital Expenditure Sanction / Deletion Form which will be raised by the Divisional Head. The CPSD on consolidation of all the Purchase Requisition Forms for the same category of items will invite for quotations from the suppliers. The quotations will be evaluated on various aspects like quality, price, delivery schedule etc. and the supplier with the best terms will be selected. Afterwards, the purchase order will be issued by the CPSD. The CPSD is responsible for purchasing goods of the accepted quality and timely deliveries at the least prices. They should strive to develop alternate sources and reduce costs continuously. Where regular suppliers are identified, periodical competitive quotations should be called for, especially before sanctioning any price increases.