Evolution of Purchase Function in Indian Railways
At the time of independence, Indian Railways was running primarily on Steam Locomotives. Most of the components required for steam locomotives were made in workshops and the components, which were to be purchased, were very few. The stores requirements for track, signaling, C&W and other general items were also less. As, at that time, the industrialization of country had just started, a substantial number of stores were to be imported mainly through India Supply Mission. The function of stores department, at that time, was limited and mainly centered on store keeping.
However with the start of dieselisation in 50’s and speeding up of electrification from 60’s the face of railways started changing.electric locomotives, compared to steam locomotives, required more number of items which were sophisticated and had to be purchased. It is mainly with dieselisation and electrification, the purchase function of railways started evolving though other changing areas of railways e.g. signaling, production of coaches, track laying and maintenance activity etc. also significantly contributed to purchase of more and more items. Apart from more number of purchase items, the issues like quality and reliability of items and the firms who were supplying them also became relevant as Diesel and Electric locomotives, required sophisticated items for which credentials and capabilities of vendors needed to be pre assessed. Activity of approval and registration of firms thus started. As the Railway system was expanding, the funds became scarce and need was felt to keep inventories at optimum level so that capital can be used elsewhere and activity of inventory control thus gained prominence. Similarly the scrap sales function also became more and more important over the years.
Purchasing and its allied activities became complex as the traffic and train services increased in number and size. Purchase activity, which was clerical in nature in earlier days, had to respond to the needs of time and had to become professional. The 80’s and 90’s saw more type of rolling stocks and improved maintenance practices. As practically the railway network in terms of track km remained more or less the same, the increase in traffic and customer expectation has put severe constraints on all the resources like track, rolling stock sheds and workshops. Less and less time became available for the maintenance of system. From mid 90’s safe running of trains has emerged as a very important issue and compared to olden days more number of items have become essential for safe operation of trains. All these issues have put severe strain on railways purchasing system.
Over the years, as the Indian Railways were evolving, its purchases have gone manifold both in terms of value and number of items. The technical, industrial and commercial scenario of the country has also changed significantly. There are now more number of standards, specifications, accrediting bodies and also more central, state and local laws. Purchasing in today's world is done in a complex environment.
The members of the IRSS on the Indian Railways are the procurement and logistics specialist of the Indian Railways responsible for procurement of various goods and services for the Indian Railways to the tune of Rs.25000 Croers per annum as well as the disposal of scrap to the tune of Rs. 3000 Crores per annum which is in the form of auction and sale of electric and diesel locomotives, old coaches and wagons as well as old bridge structures along with the Rails released from the gauge conversion activities. (above figures are as per latest IR-Yearbook)
They also manage huge warehouses attached with the major coaching and wagon workshops as well as the electric and diesel locomotive sheds.
They are the logistics managers as far as the transportation of material through the road is concerned.
Read more about this topic: Indian Railway Stores Service
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