{"id":217,"date":"2010-09-11T16:06:48","date_gmt":"2010-09-11T16:06:48","guid":{"rendered":"http:\/\/supplychain-mechanic.com\/?p=217"},"modified":"2017-09-03T12:27:01","modified_gmt":"2017-09-03T12:27:01","slug":"key-steps-in-the-purchasing-process","status":"publish","type":"post","link":"https:\/\/supplychain-mechanic.com\/?p=217","title":{"rendered":"Key steps in the purchasing process"},"content":{"rendered":"

Like any process the purchasing process is made up of several steps or activities each step takes \u00a0information, processes it and turns into an output to feed into the next step.<\/p>\n

While the purchasing process may vary from organisation to organisation the major fundamentals remain the same<\/p>\n

1 Request to purchase \/ requisition<\/a><\/strong><\/p>\n

This phase deals with identifying the need – what to buy – how much of it – and when it is needed for – there are two main forms of requisition – a manual one i.e. that created on a form (such as a requisition form) or other document and that created automatically via an ERP type system. The requisition will likely go through an approvals process whereby authorisation is given to purchase the item (or not!)<\/p>\n

2 supplier selection<\/strong><\/p>\n

Buyers may already know which supplier to to buy the item from that is being requested. If not a tender (or request for quote) process may be initiated to identify a supplier, price and lead time.<\/p>\n

3 purchase order<\/strong><\/p>\n

A purchase order is despatched to the supplier (either a paper copy or electronically) to inform the supplier of the intent to purchase. The purchase order will identify the item(s) being procured, the quantity required and the price being paid. It will also identify delivery address and any terms and conditions that relate to the order. Click here for our guide on how to create a Purchase Order template using Excel<\/a><\/p>\n

4 Fulfillment <\/strong><\/p>\n

The supplier will then despatch the goods to the buying organisation. Lead time might be required to allow the supplier to manufacture the item or receive deliver from Mitsubishi own suppliers.<\/p>\n

5 Goods receipt<\/strong><\/p>\n

Once the goods arrive at the buying organisation they will typically go through some form of goods receipting process where the goods are checked to ensure that they match what was ordered and that they are of the correct quality.<\/p>\n

6 Supplier invoice\/payment<\/strong><\/p>\n

At time of despatch the supplier will typically issue an invoice – which either accompanies the goods or is sent separately. This will be received by the finance department – processed and paid (assuming the goods are received and are correct).<\/p>\n

Summary<\/strong><\/p>\n

While these are the basic steps in the purchasing process all companies are different – some will wish to automate as much as possible replacing paper forms with electronic messages- others may have complex approval rules – despite these variations however the fundamentals remain the same.<\/p>\n","protected":false},"excerpt":{"rendered":"

Like any process the purchasing process is made up of several steps or activities each step takes \u00a0information, processes it and turns into an output to feed into the next step. While the purchasing process may vary from organisation to organisation the major fundamentals remain the same 1 Request to purchase \/ requisition This phase […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[20],"class_list":["post-217","post","type-post","status-publish","format-standard","hentry","category-blog","tag-process"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7Ittq-3v","_links":{"self":[{"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/posts\/217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=217"}],"version-history":[{"count":4,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/posts\/217\/revisions"}],"predecessor-version":[{"id":548,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=\/wp\/v2\/posts\/217\/revisions\/548"}],"wp:attachment":[{"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/supplychain-mechanic.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}