Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 14 :Major Departments in an Apparel Industry

Purchase Department

The primary objective of purchase department is to obtain the right materials, in the right quality, at right time and price. As purchasing department and raw materials stores are operational departments, they are responsible to the operations manager, and in management of finished goods, warehouse is responsible to the marketing department. The main functions of this department are:

1. Information
2. Suppliers
3. Prices
4. Progressing:
5. Verification:
6. Speculative Buying
7. Store Keeping
8. Stock Management
9. Purchase Order

1. Information:
   It provides information to all concerned regarding new products, materials and service.
2. Suppliers:
   The approval of a product and its price is normally given by the department for whom the product is intended, but this department must ensure that the supplier is stable and reliable.
3. Prices:
   While the price, quality and quantity of materials are usually specified by the operations department, the purchase must be made at the most advantageous terms for the company. Other terms and conditions such as freight costs, insurance, discounts, credit terms, etc. are also negotiated before the order is placed.
4. Progressing:
   This is concerned with ensuring that the ordered materials arrive at the correct time, and the makes sure that the production plan can be executed without any hold – ups due to late or non – delivery of raw materials.
5. Verification:
   A well managed business, checks the prices, quantities, colors etc. of delivered materials as specified in the purchase orders.
6. Speculative Buying:
   When market conditions are particularly favorable, this department recommends ordering materials such as fusibles, linings and sewing threads which are not required foe immediate use assuming scarcity of these materials or hike in prices.
7. Store Keeping:
   The staff here are responsible for receiving, storage and issuing of materials.
8. Stock Management:
   The management of the raw materials and technical stores is expected to maintain and provide accurate and up –to date information on the stock levels of all items carried. This information is essential for the purchase department to study the frequency and type of order placed with suppliers.
9. Purchase Order: This is the means by which the company places orders with suppliers and it is an important contractual document which binds the company to considerable expenditure. It is therefore, most important that the purchase order is unambiguous.