Explain the procurement of various products.

Ans. Requirement of the material to be procured is generally initiated by the production control in the case of manufacturing concerns, and by the actual user in the case of non-manufacturing concerns, some procurements are given below:
Procurement of traditional items: even if the requirement is of traditional items which the company has been using in the past, it is still worthwhile to refer it to quality control organization before placing actual order. It is possible that improved material may have been introduced which may serve the need of the company better than the traditional item
Procurement of new products: when the product is being purchased for the first time the indenter will normally indicate his requirement in general terms. He may also give the specific product to be purchased based on manufacturer’s advertisements. It may also happen that none of the existing product in the market meet all the company’s requirements fully. In such cases additional features are provided to meet the special requirement. This is done by the quality engineers.
Procurement of products as per purchaser’s designs:
No manufacturer can afford to manufacture every single item which goes into making of his product. It is more economical to get some of the components as per their own design manufactured by subcontractors.
Determining quantity to be procured :

normally the quantity of store to be product is indicated by the actual user’ depending upon expected requirement. While deciding on the actual quantity to be purchased at a time, consideration is also given to the economy which can be achieved by bulk purchase.