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Procurement Processes
Overview of Procurement Processes
The
Purchase Department carries out procurement from local suppliers as well as
foreign suppliers. The items include raw materials, packaging, trading,
engineering materials (machine spares), and other miscellaneous items while the
Marketing and Sales Department carries out the procurement of promotional
items.
The
purchase order is raised when a requirement is generated from the user
(planning) department and stock is not available at the store. Thus the purchase process
will begin with requirement identification and conclude with the finance
department making payments for the purchases.
Key
improvements to be realized from this implementation include:
· Requisitions
can be generated automatically, via MRP, hence reducing the time, costs and
efforts involved.
·
The
status of the requisition can be viewed at any time, informing the when the goods are
received.
·
The
goods receipt is entered with reference to the purchase order, thus maintaining
a link at all times.
·
The
invoice may be entered with reference to a purchase order/GR. This ensures that
the correct GR is matched with the invoice.
·
Costs
can be apportioned among the requisitioning departments via the account
assignment.
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