As a department that spends money, the purchasing department needs to improve the efficiency of the company’s purchasing process by standardizing the purchasing process and managing suppliers.
Procurement process specifications.
The process specifications of the purchasing department are mainly reflected in: whether there is an approval process, whether the contract documents are complete, and whether regular reconciliation is performed.
The company’s procurement is arranged according to the materials required for the production schedule provided by the production department. After receiving the procurement requirements, the purchaser will call out the supplier resources, and after a series of flow comparisons such as inquiry and sample viewing, the final supplier with good quality and affordable price will be finalized, and the relevant supplier information and purchase list will be submitted to the superior for review. After the review is passed, the purchase contract can be arranged with the supplier, and the supplier payment application process will be initiated. After the process is approved by the superior, it will go to the finance department, and the cashier will arrange the payment (if the monthly settlement period is negotiated with the supplier. That would be even better, which can help the company reduce financial pressure). After the supplier delivers the goods, the goods will be inspected and the goods procurement information will be synchronized to the warehouse clerk, and then the purchase delivery note, warehouse entry form and other related documents will be handed over to the finance department, and the process will be completed.
The purpose of setting up an approval process is to clarify responsibilities and improve work efficiency. If there is no process approval, the money will be spent, which is terrible to think about. Without processes and standards, there will be no rules for doing things, and chaotic corporate management is inevitable.
Business operations are inseparable from teamwork. With more people, it is natural to need to standardize processes and establish standards. If a company wants to spend money, it must not only have approval, but also have a basis. The basis is the contract document of the order. The complete contract document information is convenient for traceability and inspection, and it is also a necessary part of financial compliance.
For suppliers with monthly settlements, regular reconciliation work must be done. After the reconciliation is correct, the payment process must be initiated and submitted to the superior for approval. At the same time, the documents must be archived to make each order traceable and verifiable. After the superior approves it, it will reach the Finance Department, and the cashier will arrange the payment.