ABSTRACT

Purchasing is part of a wider materials management function that might include vendor appraisal, contract negotiation, goods inwards inspection and the safe handling and storage of goods received. Methods and procedures are depending to some extent on the type of industry and the nature of the goods being purchased. This chapter is concerned with purchasing materials, components, equipment and services of moderate value. A good way to emphasize the importance of purchasing and materials control is to remember that purchased goods and services account for over half the total costs of many projects. Listing is carried out either on parts lists or on purchase control schedules, both probably held in computer files. Engineers and others responsible for initiating project purchases have a duty to identify those items that are likely to have long lead times and ensure that ordering instructions are passed to the purchasing department as soon as possible.