Specialized Buying

Specialised buying are actually special procurement cases and involve the following organisations or methods : 

(a)  Directorate General of Supplies and Disposal (DGS&D), 

(b)  Imports and import substitution, and 

(c)  Canalization of goods. 

There are equipment or products which are just not made in India. This makes the imports inevitable. However, there are certain products which can be made in India but are not made as the manufacturers are not sure about the commercial viability of the product. The organisation should identify vendors who are capable of such import substitution. Such substitution not only saves valuable foreign exchange but is also a method of creating growth and jobs. A good vendor development cell looks out for such vendors who can or have already started such units. Care should however, be taken to ensure that quality standards are not compromised. It is necessary, however, to say that import substitution is not to be understood as a ban on imports but a strategy to absorb the possible developments anywhere and adopt them for the local conditions. Industry associations, booklets from DGTD (Director General of Technical Development), CII or ASSOCHEM etc. are useful information sources. Nowadays, the Internet is another valuable source of information. The DGTD's Technology Development Division coordinates all matters relating to acquisition of imported technology, R&D and Engineering Consultancy Services. 

Certain goods are regularly procured by certain companies or agencies called canalising agencies. In fact, these companies are given certain licences and powers to procure these items. In addition, they have the necessary commercial acumen and the technical expertise to procure them on behalf of other companies. STC (State Trading Corporation), and MMTC (Minerals & Metal Trading Corporation) etc. are the examples of some canalising agencies. Since they are experts in their areas and sometimes, buy in 

bulk, they can be resorted to for procurement of imported goods, especially bulk items.