Transmission of Need
for a specific item or service has been established the
next step shall be to transmit the need to the
purchasing people for processing at their end. It may
require certain paper work or electronic media to do
Transmission of need to Purchase department is usually
done through any one of the following three forms:
1) Standard Purchase Requisition
A Purchase requisition is a document that is used to
list down the requirement and is sent to Purchase
department for further processing.
requirement is a regular phenomenon for an organization
, every organization develops a formatised paper or
electronic requisition which is filled up by the user
department who has assessed the need for the item.
also known as "Raising of an indent" or
"Raising a "Materials Purchasing Requisition"
The indents for purchase of materials/ job contracts
is raised by the
department concerned or any
agency within the organization authorized to raise the
indent. These Indents are prepared in the a format
designed by the organization. The
indent carries a unique identification number and is
also checked for its correctness by the higher
authorities within the department , usually the the
Head of the Department. Appropriate ways are
devised for control purposes.
In the indent , the Indenter gives complete
information w.r.t. the
description and specification of the material to be
procured such as description of the
jobs to be executed along with the materials to be
supplied and equipment.
For the items to be
supplied, the quantity along with detailed
specifications and drawing
number, etc., are given in the indent.
for the equipment to
be deployed the desired capacities of the equipment,
procurement through rent/lease, etc., are
Indent. The overall quality of the jobs to be
executed along with the expected Performance
Guarantees are also mentioned in the Indent.
Normally the specifications given are standard
to national or international standards organisations
such as IPSS, PS, ISS or DIN, etc. Wherever required, additional information in the form of Manufacturing Drawings
, a check-list ,a certificate on the prescribed
proforma, in respect of proprietary items ,
incorporation of special requirement of
inspection/check-list for special packing instructions,
matching/ complementary parts
of an equipment/ assembly , etc are enclosed in
adequate numbers with the Indent.
In some organizations , especially bigger
ones, the cost estimates also form part of
the indent and as such are to be done by
Estimated values provide a
basis for examining the reasonableness of
the prices offered by the parties.
2) Traveling Purchase Requisition (TPR)
Mostly found in manually
operated purchase systems , it is usually
done by the Inventory control section .
is a simple printed card that is filed
with the inventory control record for an
item. Since TPR are a means to communicate
and activate purchase it also carries
information such as :
Complete description of the item to
List of approved suppliers for the
items, maintained by the Materials
Last Purchased price
Past Consumption record
Reorder quantity value
Since TPRs are raised for Inventory items
, the need of the item arises on the basis
of certain forecasting methods employed by
the Inventory control section. Popular
Periodic Review system ,
Fixed quantity system or Reorder point
3) Bill of Materials
In brief, all the parts /
components needed to make a product ,when
listed along with the individual quantity,
are called Bill of materials.
basically a list ,structured in the same
way a product can be thought of. For
example, when a design personal produces
design of a new product then he may be
needing a number of parts that ultimately
when assembled shall produce the item
List of such parts is called
Bill of Materials (BOM).
All other things remain the same as in
case of other
forms of transmission of need of an item.