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purchase material management is very inpppv

1. UNIT-3 Concept of Integrated Materials Management (IMM)-Organising for IMM-Types of Inventories-Standardisation and Variety Reduction -Value Analysis: ABC, VED, XYZ -other methods of Selective Analysis

2. Introduction Integrated Materials Management (IMM) is a coordinated approach to planning, sourcing, purchasing, moving, storing, and controlling materials in an organization. It aims to optimize the flow of materials from suppliers to production and finally to customers, ensuring efficiency, cost reduction, and uninterrupted operations.

3. hese entities collaborate to launch and operate mutual fund schemes while being compliant with SEBI regulations. 1. The Sponsor: The Creator of the Mutual Fund The sponsor is the initiator and promoter of the mutual fund. They play a foundational role by setting up the mutual fund trust and appointing the trustees. The sponsor is mandated by SEBI to maintain a minimum contribution of 40% in the capital of the Asset Management Company (AMC). Responsibilities of the Sponsor: Appointing the trustees Providing the initial capital for the AMC Ensuring that the mutual fund complies with SEBI guidelines While the sponsor plays a key role in setting up the mutual fund, they are not involved in its day-to-day operations. Their primary duty is to ensure that the mutual fund is run by competent professionals under the watch of trustees and the AMC.

4. Unit- Example : HDFC Mutual Fund is sponsored by Housing Development Finance Corporation Limited. 2. The Trustee: Guardians of Investor Interests The trustees are tasked with safeguarding the interests of investors. Acting as intermediaries between the investors and the AMC, they oversee the operations of the mutual fund. Trustees must be registered with SEBI and are responsible for ensuring that the AMC operates within the regulatory framework. Responsibilities of the Trustee: Monitoring the activities of the AMC Ensuring that investments align with the fund's objectives Ensuring compliance with SEBI rules and investor protection Replacing the AMC if necessary The trustee plays a crucial role in overseeing fund performance and ensuring that the AMC operates transparently and ethically. Example : HDFC Trustee Company Limited oversees the operations of HDFC Mutual Fund. 3. Asset Management Company (AMC): The Investment Manager

5. Types of purchase 1. Purchasing Based on Purpose Direct Purchasing  → The acquisition of raw materials or components used directly in production. Indirect Purchasing  → The procurement of goods or services not directly used in production but essential for operations.

6. 2. Purchasing Based on Strategy Strategic Purchasing  → Long-term purchasing that focuses on supplier relationships, quality, and cost efficiency. Tactical Purchasing  → Short-term or urgent procurement without long-term planning.

7. 3.Purchasing Based on Buying Pattern Spot Buying  → Immediate purchasing as needed, usually in small quantities and without long-term contracts. Bulk Buying  → Purchasing large quantities to obtain lower prices. Just-in-Time (JIT) Purchasing  → Procuring goods only when needed for production, reducing excess inventory and storage costs.

8. 4.Purchasing Based on Contract Type Contract Purchasing  → Long-term agreements between the company and suppliers to ensure price stability and availability. Consignment Purchasing  → Goods are stored at the buyer’s facility but remain the supplier’s property until used or sold.

9. 5. Purchasing Based on Supplier Sources Single Sourcing  → Relying on one supplier for a specific item to ensure quality and strengthen collaboration. Multiple Sourcing  → Using multiple suppliers to reduce supply risk and improve price negotiation.

10. Purchasing policy The purpose of this policy is to establish a standardized framework for the acquisition of goods and services that supports the organization’s strategic objectives while ensuring transparency, fairness, cost-effectiveness, and compliance with applicable laws and regulations. This policy ensures that: All purchasing activities are conducted ethically, impartially, and in the best interest of the organization. Proper authorization and approval processes are followed before any commitment of funds. Purchases are made at the most competitive price consistent with required quality and service. Vendors and suppliers are selected through fair and transparent processes. Risks related to procurement (financial, legal, reputational) are minimized through appropriate checks and balances. Accurate documentation and record-keeping are maintained for accountability and audit purposes. The procedures outlined under this policy provide step-by-step guidance on requisitioning, approval, vendor selection, ordering, receiving, and payment to ensure efficiency and consistency across the organization.