Steps in Purchasing Process-1

Pranay Kumar

May 7, 16

Steps in Purchasing Process-1

This article is posted by Advance Innovation Group student intended to help students or depth understanding about quality management system.

The standard also states that your suppliers should have 100% on-time deliveries. That implies a just-in-time system with accompanying posted schedules of ordering, advanced warnings of low stock.

ISO / QS 9000 requires that the purchasing department to produce well documented lists of requirements on their purchasing agreements. This includes the contractual requirements, such as type, grade, quantity, and so on. It would also include the assumed characteristics of the product, such as quality expected, standards used, and services to be rendered. In addition, you have to identify how the material will be approved on delivery and the way it will be identified.

Finally, QS 9000 in the verification of purchased goods, there needs to be a procedure for confirming that the goods you order meet all of your requirements. Specifically, it talks about verification at the supplier’s site. Either you or your customer can do this. However, the process and its limitations have to be spelled out as part of the purchasing agreement.

This process is triggered with a dialogue with the purchasing people and understanding how they work to approve their suppliers and verify their work. The in-house purchasing department then conducts review of such practices using their background information and approves them based on their credentials.

For example, the policy statements (level I documents) should reflect the language of the standard. In addition, it should clearly indicate the nature of your purchasing system and why it is the system of choice for your company.

Level II documents (standard operating procedures) for the Purchasing Department should emphasize verification and documentation. There needs to be procedures to select and approve suppliers. This procedure should discuss how you create your list of approved suppliers. The existence of the list and your method of developing the approved suppliers is critical evidence of conformance.

Another procedure that needs to be developed should be the verification of your stated requirements. Purchasing Departments typically get a wish list from Engineering, Quality Assurance, finance, and other such departments. This information should be brought down into a comprehensive summary as a single document according to the nature of the industry. Sometimes, the terms, needs, specifications, referred standards, and the like are listed right on a purchase order. Other times, a separate contract or specification list is attached to a contract.

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