The purchase cycle begins with the customer orders. The designer prepares a Purchase Requisition for the materials that must be replenished and file temporarily the customer orders for future references. After that, the designer select an appropriate supplier from the supplier's file. Upon completion, calls the selected supplier for the confirmation of the Purchase Request. Both the supplier and the designer undergo negotiations to achieve an agreed price, delivery date, and any other terms and conditions. It is up to the supplier if they would accept or not the request so that the company can look for another supplier to accommodate the requisitions.
After the confirmation of the chosen supplier, the designer gives the Purchase Requisition to the General Secretary for the preparation of the Purchase Order. The General Secretary prepares two copies of the Purchase Order which contains the number of copies ordered, the agreed unit price for every piece with the terms and conditions negotiated. The General Secretary forwards the two copies of the Purchase Order along with the confirmed Purchase Requisition to the manager.
Upon receiving the two copies of the Purchase Order and the confirmed Purchase Requisition, the manager verifies the Purchase Order and the confirmed Purchase Requisition, the manager verifies the Purchase Order with the Purchase Requisition to check any errors before approving the Purchase Order.
Once approved, the approved Purchase Order and the confirmed Purchase Requisition goes back to the designer. Then the designer calls the selected supplier and gives the blind copy of the approved Purchase Oder serving as reference of production of the materials needed. The original copy of the approved Purchase Order and the Purchase Requisition are field manually as records of his purchase.
Once the order portion is completed the supplier will deliver materials.
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