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

5.1 Cash Purchase
1511
The Ledger Folio items/P.F. Items, costing upto
Rs.5,000/-, are cash purchased through this mode. The Cash Purchase
Clerk along with Audit Clerk goes to the market and enquiries rates
with 4-5 shops for an item. In case of non stock/P.F. items, C.P. Clerk,
Audit Clerk along with technical representative of department go to
the market and select an offer, having lowest rate and technically
suitable to them, out of 4-5 offers obtained. Main advantage of this
system is direct purchase, no detailed administrative formality like
placement of purchase orders, etc., lower rates, as payment is prompt.
The disadvantage is no obligation on the part of supplier, as payment
is received against delivery, no scientific base for procurement being
oral communication and hence need rigid control/snap checks etc. This
system is, therefore, followed in case of small value items or very
urgently required items.
5.2 Telephonic Enquiry
The items costing from Rs.5,000/- to Rs.10,000/- are
generally procured through this mode of purchase. The Telephonic
Clerk takes quotations for Ledger Folio items/P.F. Items over
telephone from minimum 5-6 tenderers. The same are duly recorded
along with the firm’s name, representative’s name, telephone no.,
terms/conditions, etc. on a prescribed form. The tender is then
forwarded for recommendations. The Purchase Orders are released by
taking approval of appropriate authorities on purchase proposals based
on receipt of recommendations.
Advantages and Disadvantages
It is a via media between Cash Purchase and
conventional tenders by sending tender enquiries. In this mode, some
records such as rates, description of items, payment terms, etc. are
available. The payment is also made by cheque. However, the
enquiries are over telephone, which are faster, but may result in
confusion due to faulty communication in listening specifications,
rates, etc. The tender conditions etc. are not signed and hence have