The attractive characteristics of computers such as high speed, huge storage, quick retrieval accuracy, veracity and diligence on the one hand and increasing complexities in purchasing on the other make an excellent match for computerization of purchasing system. The declining cost of computer system is an additive factor. Although there are no complex arithmetic computations involved in purchasing, the requirements of quick processing of requisition, follow up, payment etc. find a computer of immense help. In this section, we shall discuss broad outline of computerization of the system (not the computer technology).
Let us visualise that the computer has the following files:
- Inventory file for each item.
- List of the suppliers (along with their performance history)
- Budget allocation for each department
- Master purchase files condensing the previous purchases (item-wise, department-wise, supplier-wise, price, quality etc.)
In addition, the computer has facilities to print and (may do so on a preprinted stationary) the quotation request, purchase order, follow up, inspection report etc.
When a requisition is received, the relevant data are entered through the appropriate programme. Now days, the screen and template designs are proving much more convenient and fool proof. The computer checks the inventory status of the items and if in-stock items are issued and inventory record is updated. If not in the stock, a programme finds the classification of the item, that is, whether it is a continuously used item or a special item. From the suppliers list, it finds the suppliers who can supply the items and prints quotation requests. If it is a special item, then human intervention will of course be needed to float the enquiries. The programme also checks the budget of the department and account head to which the sum is to be debited. The data from quotations are entered and the computer displays the comparative statement. It will select the supplier and print the purchase order. Upon receipt, it will update the inventory of the item. In addition, computers are very useful for monitoring the status of the purchase order to assist in follow-up actions.
So we see that computer performs all the actions displayed in Figure V and generates the reports as desired above. In addition it is very useful in processing exceptional reports, such as budget is over, orders not supplied in time, payments not made in time etc.
It may be mentioned that most of the computers, especially small and mini-computers, offer a host of utilities which are very useful for computerization of tasks like purchase.
Computerization of purchase (such as receiving, issuing, instruction, stores, inventory, handling etc) can easily bring. The desire coordination among other
Functions of materials management as well as among other departments of the organization such as production, design, engineering, finance and accounting, marketing etc. through suitable design of database and information systems.
