Following tools are available to assist in purchasing research.
1. Value Analysis
2. Purchasing Library
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3. Plant Visits
4. Discussions
5. History Cards and Performance Cards
6. Consultants
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7. Linear Programming, PERT, CPM.
1. Value Analysis:
This is an important tool in the hands of researchers to get the best value out of every rupee spent. The success or failure of purchase activities in an organization depends largely on the knowledge and ability of the organization to use these tools wisely. Wherever this is done, one finds a fruitful and paying purchase operation.
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2. Purchasing Library:
To assist research work, each organization should develop a good library. It must contain the following types of books, handbooks, journals, periodicals, magazines, bulletins, reports, etc.
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i. Materials management textbook and handbooks.
ii. Commodity handbooks.
iii. Classified purchase directories.
iv. Materials management magazines.
v. Trade association’s journals.
vi. Government publications.
vii. Export and import policy handbooks.
viii. Financial reports and pamphlets.
Some of the periodicals that will be of interest to Indian materials managers and researchers are:
i. Indian Trade Journal.
ii. Bombay Market.
iii. Eastern Metal Review.
iv. Purchase.
v. The Material Manager.
vi. Reserve Bank of India Bulletin.
vii. Monthly Digest on Current Trends in Economic Conditions and Rail transport — Published by “Directorate of Statistics and Economics.”
3. Plant Visits:
Discussions with trade representatives may be supplemented by visits to their plants. They will prove to be quite educative.
4. Discussions:
Discussions with trade associations are very helpful. Opportunities must not be lost of discussions with representatives of suppliers, particularly those with a technical background.
5. History Cards and Performance Cards:
History cards and performance cards can be a very effective purchasing tool. The cards, if properly maintained, will be a valuable source of information regarding the followings:
i. Vendor evaluation—Vendor rating
ii. Lead time
iii. Prices
iv. Special terms and conditions
v. Other behavioural patterns.
i. Vendor evaluation-vendor rating:
The vendors who can be relied upon in regard to quality, delivery period and competitiveness of prices.
ii. Lead time:
What the usual lead-time is for each group of items. Also, whether the time is to be produced during particular period-seasons of the year.
iii. Prices:
If properly plotted and correctly evaluated, one should be able to project likely fluctuation in prices in the future. Seasonal fluctuations in prices, if any, will be vividly depicted. The most favourable time of procurement during the year will be known.
iv. Special terms and conditions:
The special terms and conditions which suppliers insist upon will become clear. The company may as well recognize the need to alter their own standard terms suitably.
v. Other behavioral patterns:
For each group of items should become evident.
6. Consultants:
The efforts of the research team may be supplemented, when necessary, by engaging consultants, ha when special projects are undertaken or when very hardcore stubborn problems are on hand.
Such specialists may be employed only after getting an “O.K.” from the internal research team. Their cooperation with the consultants in the first instance and in implementation later is vital.
7. Linear Programming, PERT, CPM:
Very often modern analytical methods like linear programming, Program Evaluation Review Techniques (PERT), Critical Path Method (CPM) orOperation Research (OR) may be employed. The internal research team will have to include personnels well versed in these techniques. They help in:
i. Clearer planning by considering all variables.
ii. Clearer understanding of inter-relationships involved in various activities.
iii. Arranging a continuous review to ensure work progressing on schedule.
iv. Locating trouble spots to enable corrective action being taken in time and avoiding cumulative delays.
v. Utilizing existing resources in the most efficient manner.
vi. Predicting the completion of products accurately.