i. Based on Need Assessment

  1. Ultimate aim: Right quality, right quantity, right prices, right source at right time at the right place
  2. Centralize the purchase system
  3. Back up of good systems management

ii. Finding the Right Source

  1. Supplies catalogue
  2. Print media: Trade directories, trade journals, news papers, yellow pages
  3. Salespersons: many advantages
  4. Trade exhibition, fairs, conferences
  5. Colleagues in similar filed
  6. Internet

iii. Negotiations

  1. Possible because of huge margins
  2. Pass on to patients
  3. Not at the cost of quality
  4. Win-win situation for all
  5. Maintain relationship

iv. Negotiations – Principles


  1. Not to purchase on listed price
  2. Negotiate bulk price
  3. Always ask for discount
  4. Price protection
  5. Credit


v. Receiving


  1. Establish written protocols, assign responsibility
  2. Checking of goods for quality, expiry etc.
  3. Cross check with purchase order and invoice/ delivery chalan
  4. Proper record in designed registers
  5. Signature of receiver and delivery person
  6. periodic checks


vi. Inventory


  1. Stocks to ensure uninterrupted supplies
  2. The idle resources which have future economic value
  3. Cushion between estimated and actual demand of materials


vii. Equipments


  1. Assess need: cost benefit analysis
  2. Shop around
  3. Learn from salespersons
  4. Sources of information: web, conferences, journals
  5. Bargain hard
  6. After sale service – most important parameter
  7. Client list
  8. Trial period
  9. Warranty details

10. AMC and after sales service: Down time, replacement, preventive maintenance

11. Log book

12. Insurance

13. Obsolescence, buy back

14. Training of staff


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  1. Sushil Kumar Sharma 7 years ago

    please send me more information on the principles of materials management

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