Purchases _ procurement

So that in case of any discrepancy a valid and accepted document issued can be always used as an evidence for argument.

Normally it is a policy which almost all organisation follows.

In addition to above..........

Purchases cannot be made from any vendor of the choice of procurement department.

With regard to quality & delivery, the vendor should be first approved, after a trial made by the users of materials viz. the operations/plant/factory head and only then regular procurement can be made from that vendor.

This is the scenario, particularly in large and decentralised organisations.

Hence, approved vendors list is important to ensure procurement from right sources and to mitigate risk of substandard quality purchases.