Complete and submit Part 1 of the Final Project. Part 1 of the Final Project, due at the end of this unit, requires you to describe and draw a flowchart of the sales or purchasing process at your...

The sales or purchasing process
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The sales or purchasing process
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COMPANY PURCHASE PROCESS
Introduction
For any Company is a firm engaged with the improvement, producing, permitting, supporting
and offering of PC programming, buyer hardware and PCs and administrations. The organization
works in the mechanical advancement industry. The organization utilizes microchips in the make
of its items however does not produce the make the microchips. This implies the organization
uys the microchips from different associations through a buy procedure.
Purchase process flowchart
1. Issue Purchase Order
The first process involved in the purchases from the external supplier is to create and issue of a
Purchase Order. The following activities are undertaken in this process:
1.1 Identify Required Product
The purchase Officer first identifies the products required to be purchased and the respective
supplier. The officer also determines the length of time within which the products must be
delivered and the level of quality needed of each product. in this case the product to be purchased
is microchips.
1.2 Document Purchase Order
To request the microchips from the external supplier, the purchase Manager first completes a
‘Purchase Order’ form. The form serves the following purposes:
 Defines the specific product require
 States the delivery timeframes,
 States the delivery address
 States the cost center to be charged for the purchase.
1.3 Approve Purchase Order
This Purchase Order is then forwarded to the senior Purchase Manager for approval. The senior
purchase Manager will then consider the following criteria before approving this form:
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 Is the product listed within the purchasing plan of the organization?
 Does the product definition provide sufficient detail for the external supplier to interpret
the requirement of the organization?
 Are the time frames for delivery specified in the form applicable?
 Is the external supplier listed as an approved supplier?
1.4 Issue Purchase Order to Supplier
Once the Purchase Order is approved by the senior purchase Manager, it is issued to the external
supplier for action by either fax, mail or post.
1.5 Communicate Delivery Timeframes
The next thing is for the Supplier to confirm receipt of the Purchase Order and issues an
estimated time of A
ival for the ordered product. The estimated time of a
ival states the likely
timeframe for delivery of the ordered product.
1.6 Fulfill Purchase Order
The supplier then processes the purchase order and then delivers the product, microchips to the
organization as ordered. The purchase manager then reviews the delivered product and identifies
and resolves any issues su
ounding the delivered product. The delivered product is then
accepted formally and payment to the supplier is authorized. Procedures undertaken under this
include:
1.6.1 Receive Product
The supplier delivers the product as defined by the purchase order to the organization premises.
The purchase manager then physically views the delivered product and confirms that they have
eceived the product.
1.6.2 Review Product
The product is then reviewed to access whether or not it meets the requirements of the initial
Purchase Order. This usually involves a physical inspection of the product to determine whether
or not:
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 the product was delivered on time,
 is within agreed cost
 Is at the level of quality required.
1.6.3 Resolve Product Issues
If the review process discovers that the delivered product does not meet some of the
equirements set by the purchase order, then a formal issue is raised by the purchase manager.
The severity, extend and impact of the issue is then rated. The purchase manager will then lead
in the quick and appropriate resolution of the issue.
1.6.4 Accept Product
Once all issues su
ounding the product have been resolved, the Purchase Manager may then
formally accept the product on behalf of the purchase department and will then notify the
supplier.
1.6.5 Approve Payment
The supplier will then send an invoice to the purchase department, which is approved for
payment by the Purchase Manager.
1.7 Manage Supplier Contract
The overall performance of the supplier is then assessed regularly to determine that he or she is
fulfilling the overall conditions of the purchase contract.
1.7.1 Confirm Milestone Reached
A number of supplier review milestones will usually have been determined during the planning
process. Once each and every milestone is reached, the purchase manager will inform the senior
purchase manager that the performance of the supplier is ready to be assessed and thus a formal
program of assessment is initiated.
1.7.2 Review Supplier Performance
The Purchase Manager leads a review of the supplier's performance. It involves:
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 Confirms that the milestone has been reached.
 List of the actual products provided by the supplier.
 Identifying whether or not the products met the requirements.
 Identify any issue that arose.
 Confirm that each condition within the contract was met.
1.7.3 Identify Supplier Issues
If the review process discovers that the delivered product does not meet some of the
equirements set by the purchase order, then a formal issue is raised by the purchase manager.
The severity, extend and impact of the issue is then rated. The purchase manager will then lead
in the quick and appropriate
1.7.4 Resolve Supplier Issues
The following outcomes may occur out of the resolution:
 The supplier is congratulated on his/her performance
 The supplier is given an opportunity to co
ect the issues,
 Supplier payment is withheld and/or the contract terminated.
 Legal action may be taken by the organization against the supplier.
1.7.5 Communicate Review Outcome
Upon completion of the supplier performance review and resolution of any issue, the outcome of
the review is then communicated to the major purchase stakeholders.
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2.1 Procurement Management Process
Fulfill Purchase OrderIssue Purchase Order Manage Supplier Contract
Identify Good or
Service to Purchase
Document Purchase
Orde
Approve Purchase
Orde
Issue Purchase
Order to Supplie
Communicate
Delivery Timeframes
Receive Product
Good or Service
Review Product or
Service
Resolve Product
Issues
Accept Product
Approve Payment
Confirm Milestone
Reached
Evaluate Supplier
Performance
Identify Supplier
Issues
Resolve Supplier
Issues
Communicate
Review Outcomes
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E.g
McDonalds Purchasing Process Flowchart
Introduction
The paper will give a thorough investigation of the purchasing procedure of McDonald's
organization and outlining a significant flowchart process. McDonalds Corporation is one of the
iggest fast food eateries serving man clients crosswise over 119 nations around the world.
Today, the organization has extended its to35, 000 stores over the world. The...