Process Cycle
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The whole process cycle covers Procurement/Purchasing, Production, & Sales processes. 1. Determination of Requirement a. What material/service is required? b. What quantity is required? c. Till what date the above said material & quantity are required? d. Also, availability check/stock level check e. Forecasting + For us, in this step we get production plan from HO 2. Source Determination – Helps us to find the most suitable source for a certain requirements. a. Based on past orders b. Existing long term agreement 3. Vendor Selection – a. Negotiations b. Comparison of quotations on the basis of – Price, Parameters, quantity, & quality etc. 4. Purchase Indent / Requisition – Requirement from various departments to purchasing department. + Information – - Header – Indenter Code, Name, Dept., Plant. - Body – Item code, Description, Quantity, Requirement, Delivery Date etc. 5. Purchase Quotation – An offer by a Vendor to a Purchase organization regarding the supply of material performance of services subject to specified conditions. + Based on Purchase Indent/requisition + Information – Vendor, Date, Quantity, Unit, Price, Amount, Tax, Discount, & Warehouse. PROCUREMENT/PURCHASING
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process cycle
Transcript of Process Cycle
The whole process cycle covers Procurement/Purchasing, Production, & Sales processes.PROCUREMENT/PURCHASING PROCESS
1. Determination of Requirement a. What material/service is required?b. What quantity is required?c. Till what date the above said material & quantity are required?d. Also, availability check/stock level checke. Forecasting+ For us, in this step we get production plan from HO2. Source Determination Helps us to find the most suitable source for a certain requirements.a. Based on past ordersb. Existing long term agreement
3. Vendor Selection a. Negotiationsb. Comparison of quotations on the basis of Price, Parameters, quantity, & quality etc.
4. Purchase Indent / Requisition Requirement from various departments to purchasing department. + Information Header Indenter Code, Name, Dept., Plant. Body Item code, Description, Quantity, Requirement, Delivery Date etc.
5. Purchase Quotation An offer by a Vendor to a Purchase organization regarding the supply of material performance of services subject to specified conditions.
+ Based on Purchase Indent/requisition+ Information Vendor, Date, Quantity, Unit, Price, Amount, Tax, Discount, & Warehouse.
6. Purchase Order A formal request or instruction from a purchasing organization to a vendor or a plant to supply or provide a certain quantity of goods / services at or by a certain point in time. Its a legal document between a vendor & the company. And covers payment & delivery terms.
+ Based on Purchase Indent/requisition+ Information Select Vendor, all details copied from Indent.
7. Goods Receipt (Warehouse - QURANTINE) Process of receiving material into a warehouse.+ Conditions, Quality, & Quantity are verified between our own Purchase Order & Vendor Invoice.+ Based on Purchase Order+ Information Select Vendor, all details copied from purchase order.
7.A Label Printing Labels are printed for Quarantine & Testing.+ Information Quantity, Date, Container Number. A.R. Number generated7.B QC Check Verification of the received material on our required parameters, if approved, then only material move for further process i.e. Production, else returned to Vendor with Debit Note.(Inventory Transfer: Quarantine W/H Approved W/H)
8. A/P Invoice - We need to CLOSE it as the payment to Vendor has been done.
+ Based on Goods Receipt Order+ Information Select Vendor, all details copied from Goods Receipt order.
9. Work Order for Production -
