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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 inadequate. 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 the stores department, at that time, was limited and mainly centered on storekeeping. Organization The department is organized in three tiers. The top tier is at the Railway Board level, the second tier at the Zonal Railway level and the third tier at the divisional or the district level. At the apex level, this department is headed by Member Materials Management who represents the department at the Railway Board level and is ex officio Secretary to the Government of India. Member Materials Management is in turn assisted by Additional Member (Railway Stores), Principal Executive Directors, Executive Directors and Directors. At the zonal levels, the principal head of the department is the Principal Chief Materials Manager(PCMM). The PCMM is assisted by Chief Materials Managers(CMMs). These CMMs in turn have various Dy. Chief Materials Managers, and in turn, they are assisted by the Senior Materials Managers and the Assistant Materials Managers. The Stores department manages about 200 warehouses that feed into the repair workshops and maintenance sheds. The Warehouses called depots headed by a Depot Officer. Depots attached to workshops are headed by Dy. CMMs, and electric and diesel locomotive sheds headed by SMMs. These depots directly reports to PCMM Division headed by Sr. DMMs who report to Divisional Railway Managers. Sr. DMMs are responsible for material management at divisional level by catering needs to others branches of divisions. They are responsible for coordination of scrap arising out of division in close association with the Engineering Department. Sr. DMMs also do uniform management for various grades of running staff such as guards, TTE, station masters. Objectives of the department for the coming years. The objective is to increasingly apply the modern concepts related to integrated materials management, strategic and operational aspects of outsourcing and procurement, the interface of materials management and supply chain management. The objective is also to adopt the latest techniques of cost control and optimization by leveraging information technology tools for development and implementation of an efficient materials management system in the organization. It is needless to say that all is to be done in public procurement platforms in most economic manner. 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. Even organizations much smaller in size and scope than Railways appoint persons expert in techno-commercial areas like taxation, port clearance, law and accountancy. The officers manning the cadre will be encouraged to take special interest and become specialist in one of the areas of scientific materials management, some of which are given below- Strategic procurement management International purchasing Inventory management – designing and implementing inventory systems Logistics management Management information system Financial aspects of materials management Sales and Auction management Value engineering Indian Railways has to make major changes in their rules, procedures, and methodology of procurement, and the methodology of disposal of non-performing assets and unserviceable materials. For example, green procurement, e-procurement, e-payments, reverse auction, and eco-friendly disposal systems have to be not only introduced early but implemented with speed and on a sustainable basis. E-Procurement: since 2009, Indian Railways Stores Service achieved the distinction of going 100% digital on tendering and procurement through web based online process using PKI and digital signatures completing all 26 railway units (both zonal & P.U.s). This is the biggest web-based procurement portal in Asia using single window function for all procurements by Indian Railways, crossing over two Lakh online tenders through fully secured website www.ireps.gov.in . E-Auction: IRSS successfully achieved & adopted Online E-Auction process since May 2013, crossing E-Auction Revenue over 1000 CR using full secured single window e-Auction process, providing online net banking and payment, enabling purchasers across India to participate online.