Independent Purchase department

why do we need separate Material management department in Indian Railways?

It is a question often asked in railways. Why engineering departments are not allowed to purchase for their requirement. Argument put forward is that Stores department introduces unnecessary red tape. Then why separate department?
Let us first look at other industries. Do they have material management department?
Answer is unambiguous YES. All private sector and even public sectors like ONGC, NTPC , SAIL , Foreign railways do have separate Material Management department. It is called material management department in India and Procurement department abroad. All business are administered by coordinating an integrating six functions:

1. Creation of idea or design function: importance is less when product is evolved or developed.
2. Finance
3. Personnel
4. Purchasing: acquisition of required material, services and equipment.
5. Manufacturing/operation: transformation of material into economic goods or services.
6. Distribution: marketing and selling of goods/services produced.