Purchasing
OVERVIEW
Purchasing defines how the procurement process is structured and managed across various categories.
1. Purchase Requisition (PR):
An internal document requesting the purchase of goods or services, specifying material, quantity and delivery date. It triggers the procurement process within the organization.
2. Purchase Order (PO):
A formal document issued to a vendor confirming the request for goods or services. It includes details like material, quantity, price, delivery terms and payment conditions.
3. Contracts:
Long term agreements between a company and a vendor, specifying the terms and conditions for supplying materials or services over a defined period. These can be quantity or value based.
4. Scheduling Agreement:
A type of contract that includes pre-agreed delivery schedules for materials over a period. It ensures a steady supply from the vendor.
5. Request for Quotation (RFQ):
A document sent to vendors asking for price quotes for specific goods or services, used for comparison before making a purchase decision.