PL-171

Duties & responsibilities of procurement & supply officer at bottling plant

These guidelines are prepared for procurement of material for bottling plants as well as for office i.e. stationary articles, printed stationery and publicity material.

Procedure

Purchase is the important functions in material management. Detailed guidelines for making purchase of material are given in PL-141. The operative guidelines are as under:-

Maintenance of records

  1. Supplier information register (PS-27)

This register contains information about different suppliers for each category/item of stocks, their address, telephone no., persons to contact over phone, terms of supply etc.

  1. Supplier wise correspondence file

Correspondence relating to each supplier from whom repeated purchase are made, should be filed under separate files, which gives us information about our past experience with each supplier.

  1. Purchase order register (PS-28)

This register contains date wise information of all purchase orders placed, executed and pending with different suppliers. For convenience, we must contain separate registers for LPG supplies, cylinders purchase and purchase of accessories’ and fright paid. This register provides the data regarding actual delivery period involved in each purchase after placing order. This information will be useful or planning future purchase and scheduling holding levels and payment to the parties in time.

  1. Table showing location wise stock holding (PF-23)

This register will contain the information about minimum level/maximum level and re-order level for each items and for each godown (storage locations) of stocks, bottling plant and stationary store. These levels are to be collected periodically (at least once in a quarter) as per guidelines given in PL-141.

  1. Stores, stationery and publicity

All stores articles are kept centrally at one place in our stores godown. The person dealing stores will post the bin card and simultaneously identify items with too-low stock balance. He will prepare requirement indent (Form No. PF-20)

  1. Plant materials

With regards to plant material these are kept at different points at our bottling plant and godown. At each point we have specific supply obligations. In this context, please refer to the record guidance. Table indicating locations-wise stock holding levels, which should be kept updated always as per guidelines in PL-141. Similarly, the plant wise/godown wise stock register should be posted. Compare the actual stocks on hand at each point with the required holding stocks (above re-order level) as per table. If the stocks at the godown are depleted, replenishment can be made from the plants for cylinders. But for other products like pressure regulators etc. orders have to be made with the suppliers. Similarly with reference to the stocks at bottling plant, orders to be placed with suppliers. Do not exclusively depend on your own information system.

Educate the plants in-charge and the godown keepers in charge of the godown and advise the holding levels for their respective plants/godown. The same form No PF-20 can also be supplied to them. However, this support service from the plants in-charge/ godown keeper will not relieve your own primary responsibility to be always alert and initiate purchase process from the strength of the information in the records maintained by sales person.

Similarly, despite the setting up to holding levels, there are exceptions as in the case when a special marketing or sales promotion drive is undertaken at key centers, there should be adequate stocks at the point of supply to this center. It will be justified to hold maximum levels on these occasions. LPG prices in the international market have increase is around 15%. It is therefore necessary, that a special note should be put up to the M.D to stock maximum quantity of LPG before this period up to the storage capacity of our plants and godowns.

Purchase Authorization

 After the material to be purchased is identified, identify the supplier and quantity to be purchased and submit form No. PF-24 to get sanction for the purchase from the competent authority. In respect of printed stationary, the sanction should be obtained on PF-25.

Placing order with supplier 

Order with supplier is to be placed on PF-26 on receipt of sanction. When there are special order forms for any specific supplier (e.g. reliance petroleum LTD.) order should be placed on their format, for quick response. As already stated, print orders should be placed to the printers on form PF-27. All orders placed with different suppliers should be entered in purchase register.

On receipt of the goods 

The stores items are received at the office, but the plant material is received at the plants or at the godown. The persons responsible for receiving the goods should check the goods on receipt with reference to the quality, size, weigh, grade I.S.I marking unit rate and the calculation made in the invoice. The inspecting officer should certify the inspection carried out by him in the delivery challan or invoice. Do not recommended the payment, unless this formality is properly attended and certificate to the effect given in the purchase records (D.C or invoice).

In case of receipt of sub-slandered/defective goods

Such goods should be segregated from the quality goods and kept separate and should not be taken into account. The matter should be immediately taken up with the supplier for replacement and payment to be made only after the matter is satisfactory settled. However, if the supplier insists part payment to the extent of the cost of the quality goods (other than the defective goods) this may be made.

Entry of goods purchased on our stock register 

Forward delivery challan/invoice for stores purchase to the stores person for entry in the bin card and to the sales for entry in the stock register, if not done on the challan/bills received from them after receipt of material. Similarly purchase relating to plant material are to be entered by the person purchase.

Payment to suppliers 

The invoice may be sent to the AM (Sales & Accounts) for making payment to the suppliers. If the transporter has sent the freight bill, this also can be endorsed for payment and sent to the AM (sales & accounts) for payment after verification of the accuracy of the claim.

Petty cash system for small purchases 

Stores purchase section is permitted to keep their independent petty cash register (PS-26). For meeting small expenditure and for purchase of small items of stationary, printing order payment, incidental expenses like transport, cooliage, cartage with the exception that the amount of imprest advance for petty cash should be based on anticipated need for a week requirement. That is after the initial  during a month, there should not be more than 3 to 4 subsequent drawl of advance. The petty cash book to be Classified under the different column heads to be based on the needs of the stores section. In all other respects the procedure is the same.

Literature

PL-141   Guidelines for material procurement

Records

PS-5   Plant wise stock register

PS-26 Petty Cash register for stores

PS-27 Supplier information register

PS-28 Purchased order register

Supplier wise correspondence

Forms

PF-23  table showing location wise stock holding levels

PF-24  Sanction for purchase of material

PF-25  Sanction for printing

PF-26  Purchase order form

PF-27  Print Indent form