What Is the Standard Purchase Order Process?

The procurement process includes information collection, inquiry, price comparison, bargaining, evaluation, sample request, decision, purchase, order, coordination and communication, reminder, purchase acceptance, and payment arrangement.

Purchasing Process

Enterprise procurement processes generally have three forms: comparison selection, competitive negotiation and single source.

The main process of comparison and selection of procurement methods:

1. The purchaser sends purchase information (purchase announcement or purchase invitation) and purchase documents;

2. The supplier prepares and submits the response documents according to the requirements of the procurement documents;

3. The purchaser reviews the supplier's response document and determines the candidate supplier.

(The number of selected candidate suppliers is less than the number of suppliers who submitted the response documents, and the specific number depends on the procurement project);

4. The purchaser reserves the right to further negotiate with the selected candidate supplier;

5. The purchaser determines the final selected supplier, and sends a notification of the purchase results to all suppliers that have submitted response documents;

6. The purchaser signs a purchase contract with the selected supplier.

The main procedures of competitive negotiation:

1. The purchaser sends purchase information (purchase announcement or purchase invitation) and purchase documents;

2. The supplier prepares and submits preliminary response documents in accordance with the requirements of the procurement documents;

3. The purchaser conducts one or more rounds of negotiations with all suppliers that submitted the response documents according to the preliminary response document, and the supplier performs one or more rounds of response according to the purchaser's requirements;

4. Purchasing is evaluated based on the supplier's last round of response, and the supplier is determined;

5. The purchaser sends a notification of the purchase results to all suppliers that have submitted response documents;

6. The purchaser signs a purchase contract with the contracted supplier.

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Receiving Purchase Plan-Inquiry and Comparison-Decision-Download

Purchasing process: Collect information, inquiry, price comparison, negotiation, evaluation, request for samples, decision, purchase, order, coordination and communication, reminder, purchase inspection, sort payment.

Composition of purchase price: the level of supplier cost, specifications and quality, supply and demand relationship of purchased materials, production season and purchase timing, delivery conditions, payment conditions.

Supplier classification: raw material supplier, small service supplier, temporary supplier.

Standards for qualified suppliers: excellent business leaders, high-quality management personnel, stable staff groups, good machinery and equipment, good technology, and good management system.

1. Search for new products and new materials suppliers, data collection and development.

2. Evaluation and certification of the new supplier's quality system status (capacity, equipment, delivery, technology, quality, etc.) to ensure the quality of the supplier.

3 Price comparison and negotiation with suppliers.

4 Review the price, capacity, quality and delivery of the old supplier to determine the stable supply capacity of the original supplier.

5. Track and control the changes in the market price of raw materials and quality in a timely manner in order to improve product quality and reduce procurement costs.

6. Orchestration planning. Material ordering and delivery control.

7. Management training for department employees.

8. Communication and coordination with suppliers and other departments.

Duties

1. Valuation of major raw materials.

2. Preliminary confirmation of the quality of supplier material samples.

3 Initial production and modification of material samples.

4 Search for alternative materials.

5. Preparation of relevant technical and quality documents of the purchasing department.

6. Communication and coordination of technical and quality issues with technical and quality departments.

7. Communication and coordination with suppliers on technical and quality issues.

Job responsibilities

1. Release of purchase order.

2. Control of material delivery.

3 Survey of material market conditions.

4 Verify the quality and quantity of the feed.

5. Handling of abnormal feed quality and quantity.

6. Communication and coordination with suppliers on delivery date and delivery volume.

a. Strong working ability

Purchasing is a fairly complex and demanding job, and the basic work capabilities that a buyer should have are quite diverse. Buyers must have high

Strategic cost

The strategic costing process consists of four steps: estimating the cost of a supplier's product or service; estimating the cost of a competitor's product or service; setting your company's standard costs and identifying areas where products and processes need improvement; identifying these processes and The value of product change and continuous improvement to your company.

Using these four steps will help answer the following question: Should my business expand production capacity? What are the strengths and weaknesses of competitors? What strategy will make my business preemptive in the competition? How will this process affect your company's bottom line earnings and cash flow?

1. Estimate the cost of a supplier's product or service. Many useful data can be obtained by visiting the supplier's facilities, observing and asking questions appropriately to estimate the cost of the supplier. Remember, to estimate the cost of a supplier, you must understand the materials used in the product, the number of operators who make the product, and all

1. Finding the problem: At this stage, the demand is raised by the user department. Only specific users know what their needs are, not decision makers. This is the basic link of industrial product sales.

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Estimate the cost of a supplier's product or service;

Estimate the cost of competitors' products or services;

Set your company's target costs and identify areas where products and processes need improvement;

Determine the value to your company of making these process and product changes and continuous improvement.