Definition :
Local purchases are purchases made locally from suppliers in your country, which may or may not be linked to a sales order confirmation.
Purpose :
The purpose of this procedure is to define the operations to be carried out in order to satisfy an internal purchasing requirement, by clarifying the responsibilities and parties involved in each stage, from request to acceptance.
Implementation date : upon approval.
IT directory : quality, local and general purchasing processes, procedures.
Filing cabinet : Quality department storage, ISO 9001 filing cabinet, procedures.
I- Purchase requisition :
In order to notify the Local Purchasing and General Resources department of your purchasing needs, you need to send your purchase requisition by e-mail.
It must include the following information :
- Description of requirement
- Quantity
- Requested delivery date
- Customer order confirmation number (if the requisition is linked to a customer order).
- Suggested supplier
II- Purchase requisition processing :
All purchase requests must be validated by the line manager before being processed.
For requests over 200 $, it is mandatory to submit three comparative quotes with the approval of the General Manager.
III – Placing the purchase order :
This is a legally binding document between a supplier and your organization. It must be created using an ERP system, such as SAP.
Types of purchase orders :
- Purchase order with an SAP purchase order: for purchases linked to a customer deal, after finalization of the negotiation and validation by the supplier, it is mandatory to send the general purchasing conditions with the purchase order to the supplier by e-mail.
- Purchase order with a contract: we strongly advise you to use contracts with suppliers. In the case of repetitive and urgent purchases, a contract can save time in terms of delivery, availability and price negotiation, and optimize purchasing processing times.
IV- Tracking purchase requisitions :
Once the supplier has received the order confirmation, it is necessary to monitor the progress of the order in relation to the desired delivery date.
It is essential to monitor the progress of the order, and to remind the supplier of any delays, in order to guarantee on-time delivery.
V- Volet HSE :
For all purchases of materials, work tools or in-house services, it is essential to consult the HSE manager to ensure that obligations are met and that the order is complete and correct.
Receipt on the SAP system (by way of example) :
- for a goods order, acceptance is based on the goods received, the initial order and the delivery note received and sealed by the requester.
- for a service order, acceptance on the system is based on the initial order, the delivery note and the acceptance report, which must be signed by the applicant.
VI- Payment to suppliers :
Payment can only be made after receipt of the supplier’s invoice sealed by the applicant with the words (“Good to pay”).
Comments :
It is also important, when drafting your procedures, to specify the following for each of them :
The type of task
The person carrying out the task
The deadline for carrying out the task
The frequency of the task
The implementation of this procedure will take effect as soon as it has been approved by General Management.
we recommend creating a purchase register with google sheets
We recommend that you use Visio, a highly effective tool from Microsoft Office, for the flowchart.
Our articles are written by expert consultants from ED TRUST, Forvis Mazars, EY, Deloitte and Grant Thornton.
