Administration Manual - B.E.S.T. Undertaking.

1509
orders, stock-in-hand and consumption during the lead-time, tender
quantities are worked out and the tenders are processed.
Advantages
i) Similar item are processed simultaneously, which reduces
administrative work of processing separate tenders for individual
items, Committee Notes, etc.
ii) Due to larger quantities of similar items, more competitive
quotations are received, i.e. lower prices.
iii) Better response from large manufacturers/reputed
manufacturers, i.e. quality, products are available.
Disadvantages
i) In case of small errors in processing any of the items at any
stage, procurement action for all the items get affected. The schedule
processing gets delayed and stock-outs are increased.
ii) Wrong forecasting results in reprocessing of individual items,
separately.
3.2 Non-ledger Folio Items
The consuming department requires certain items
other than ledger folios for their day-to-day functions. These could be
either capital items or items required for repairs and maintenance. The
department fills up Purchase Forms giving detailed description,
quantity required, specifications of items, its nature/type (i.e. capital
or R & M), the Last Purchase Details indicating name of supplier,
quantity, rate, etc. It also certifies whether the item is required for
electricity distribution or not. They also indicate procurement
guidelines, viz. whether proprietory items of certain firms or enquiry
to be sent to selected firms/authorized distributors, etc. The Purchase
Forms are received by the concerned depots, who verify description
and confirm that the items on the P.F. is not a stock item and the
same is forwarded to Purchase Control Unit for further necessary
procurement action. In case the item mentioned on P.F. happens to be