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Getting to Know the Purchasing Stages in a Company



Getting to Know the Purchasing Stages in a Company

Getting to Know the Purchasing Stages in a Company

The material procurement process can be carried out properly if it is supported by a supplier company that has adequate capability and commitment.

So that both parties, both the purchaser and the supplier, benefit from each other, aligning the vision and mission is an important thing to do.

It should be remembered again that suppliers are business partners as well as the second line of the production process, so all problems that occur in each line are a shared responsibility.

Generally, the purchasing process is carried out through several procedures or steps, including:

Sales Department Request

The first stage of the purchasing process starts from the sales or production department who submits a request for goods.

The sales department will immediately submit a written request in the form of a Purchase Requisition Form to the relevant manager.

In the form it must be clear what is needed such as material specifications, quantities required, and suggested suppliers.

At this stage, it can be determined in three ways, namely intuitive, market research, and inventory calculation.

Do a Market Survey

The supplier selection process broadly consists of two aspects, namely conducting a search of all potential suppliers and summarizing a list of all identified suppliers.

In the process, you can start by conducting a market survey to find potential suppliers.

This selection process can be done by gathering information from many sources such as advertisements, trade directories, advice or recommendations of business forums, to attending exhibitions.

They will play an important role from production to distribution of goods from the company.

Choosing a Supplier

After conducting the process of searching for potential suppliers, choose the right supplier so that it can increase efficiency in terms of funds and company performance.

To determine which supplier to choose, of course you will choose a supplier that can provide the best benefits.

However, keep in mind that price is not the only thing to consider.

Also pay attention to the quality of the product, the company’s financial capabilities, and the ability to meet demand in the required amount.

All stages of supplier selection sound quite complicated, but companies can take advantage of procurement solutions to make the process much easier.

Place an Order

After you determine the supplier, make a list of the items to be purchased, so the company can estimate the required budget.

Next, place an order by sending a letter of order or Purchasing Order (PO) to the supplier.

Keep in mind that don’t place an order suddenly, make this order in advance.

This is done to avoid the time distribution of goods to the company.

You even have to be able to estimate the delivery time when making the order process.

When placing an order, monitor your order, for example by asking the supplier about the progress of the goods or services needed.

Goods Receipt and Inspection

After everything is done, the company only needs to wait for the goods that have been ordered before.

After the PO is processed by the supplier, there is an acceptance of the goods according to the order submitted in the PO.

Do an inspection before signing the receipt of goods.

Check the quantity and quality of orders to ensure that none of the orders are defective or under-quantified.

If there are items that do not match or are defective, you can return the goods to the supplier.

After that, the purchasing department will receive an invoice from the supplier containing details about the purchase of goods along with the tax value and the net amount of the purchase.

If the contents of the invoice match the PO, the receipt of the goods, and the net amount of the purchase, the payment can be made in accordance with the agreed agreement.

Praneet is the CEO and Editor of the website He is a blogger and have varoius blog on various topic and he is from India who loves to read and write about Technology, Gadgets and Gaming. If you share the similar interests then you can follow him on Facebook | Google+ | Twitter

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