Merchandise Procurement is the new technology that has various advantages and its an adoptable technology in present scenario. The main advantage of this system is that it is online system and cost effective. Further it manages the operations with minimum inventory cost, timely procurements and thereby it increases sales turnover. The main function of this Merchandise Procurement is that it supports the material management function. It includes invetory stock monitoring, generation of requirements, raising purchase orders, preparation of consignments, material inward checks, quantity and quality checking, material receivpts and meterial consumptions recording after sales of items. It also supports queries and reprots which are useful for the managers for day to day operations and for decision making.