2. RAW MATERIALS: -The item is a raw and its not a finish goods. -Raw material is the basic material from which a good product is manufactured or made.
3. COMPONENT: -It is the materials or the parts that are waiting to be made into something else and its also known as semi finished goods or finished good.
3.1. WORK IN PROGRESS.-It is a materials and components that have begun their transformation to finish goods.
4. CONSUMABLES PRODUCT:- The consumables means goods that people purchase regularly because they are quickly use and need to be replaced often.
5. DEFINITION OF e-PROCUREMENT: e-PROCUREMENT is the business to business(B2B) purchasing of goods and service through the internet.
6. DRIVERS OF e-PROCREMENT:-Business efficiency -Increase customer satisfication
8. CHALLENGES IN PROCUREMENT:-An innability to integrate with existing ERP and procurement system. -An innability on board and support a large number of suppliers. -Complex and unintuitive user interface
9. DEVELOPMENT OF E -PROCUREMENT: -Companies should consider the following four factors when developong their e-procurement
10. TYPES OF SPENDING (DIRECT AND INDIRECT)
11. CONRACT PURCHASE VS.SPOT PURCHASE.
12. VENDOR RECRUITMENT
13. ACCESS TO LARGER B2B FORUMS
14. ELECTRONIC AUCTIONS (e-auctions)
15. Features of an e-Procurement platform :- Research -Manage vendors -Approval routing -Request quotes and bids. -Make purchases -Check order status. -Handle receivables.
16. PURCHASER AND VENDOR PREPARATIONS
17. -Determine procurement strategy:The types of goods to be sourced,contract versus spot buys and vendor recruitment plan.
18. PROCUREMENT ORDER CYCLE STANDARD PROCEDURE :
19. 1)Identification of requisition material.
20. 2)Determination of possible supplier.
21. 3)Preparation of purchase order (PO).
22. 4)Following up and expedited delivery.
23. 5)Preparation of documents.
24. 6)Product storage
25. 7)Receiving and handling invoice
26. 8) Issuing payment.
27. -Determine purchasing policies:Authorizations , approvals ,access rights and spending limit.
28. Determine financial settlement and logistics need-payment ,shipping and receiving
