Process

Supply Chain Process Summary

Identify which goods and services the customer needs

First, a business must determine its item or service needs. This might be a new item, a restock, or a subscription renewal. This p ...

Submit a purchase request

An employee or business group makes a formal purchase request when they need a lot of new supplies or services (also known as a pu ...

Assess and select vendors

With a precise list of needs and an approved purchase request, identify the best vendor and submit a request for a quote (RFQ). B ...

Negotiate price and terms

Before making a decision, gather three estimates from providers. Examine and negotiate each quote. Consider VAT stress on the pric ...

Create a purchase order

Send the supplier a PO. The PO should be specific enough to allow the provider to fulfill it.

Receive and inspect the delivered goods

Check for faults or damage in deliveries. Ensure everything is delivered as ordered and the quality meets or exceeds expectations.

Conduct three-way matching.

Accounts payable should compare the purchase order, order receipt (GRN), and invoice. The purpose is to guarantee that products or ...

Approve the invoice and arrange payment.

Approve and pay the invoice if the match is correct. Accounts payable should confirm that invoice payments match the invoice amou ...

Recordkeeping

Keep track of everything from purchase requests through price negotiations, invoices, and receipts. These records have many uses. ...