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    Purchasing Cycle and Vendor Management

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    Cindy Cinintya
    The document discusses vendor selection and the purchasing cycle. It states that quality vendor certification programs can help companies measure vendor reliability by monitoring their processes. It also outlines the correct order of steps in the purchasing cycle: 1) a company issues a Request for Quotation to receive quotes from vendors, 2) once a vendor is selected, the company issues a Purchase Order to confirm the order, and 3) upon delivery, a Goods Receipt Note is issued by the receiving company to acknowledge receipt of the delivered items. Maintaining quality certification and following the proper purchasing cycle steps help ensure a reliable vendor and output.

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    Purchasing Cycle and Vendor Management

    Uploaded by

    Cindy Cinintya
    381 views2 pages
    The document discusses vendor selection and the purchasing cycle. It states that quality vendor certification programs can help companies measure vendor reliability by monitoring their processes. It also outlines the correct order of steps in the purchasing cycle: 1) a company issues a Request for Quotation to receive quotes from vendors, 2) once a vendor is selected, the company issues a Purchase Order to confirm the order, and 3) upon delivery, a Goods Receipt Note is issued by the receiving company to acknowledge receipt of the delivered items. Maintaining quality certification and following the proper purchasing cycle steps help ensure a reliable vendor and output.

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    PURCHASING CYCLE AND VENDOR MANAGEMENT

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    The document discusses vendor selection and the purchasing cycle. It states that quality vendor certification programs can help companies measure vendor reliability by monitoring their processes. It also outlines the correct order of steps in the purchasing cycle: 1) a company issues a Request for Quotation to receive quotes from vendors, 2) once a vendor is selected, the company issues a Purchase Order to confirm the order, and 3) upon delivery, a Goods Receipt Note is issued by the receiving company to acknowledge receipt of the delivered items. Maintaining quality certification and following the proper purchasing cycle steps help ensure a reliable vendor and output.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    381 views2 pages

    Purchasing Cycle and Vendor Management

    Uploaded by

    Cindy Cinintya
    The document discusses vendor selection and the purchasing cycle. It states that quality vendor certification programs can help companies measure vendor reliability by monitoring their processes. It also outlines the correct order of steps in the purchasing cycle: 1) a company issues a Request for Quotation to receive quotes from vendors, 2) once a vendor is selected, the company issues a Purchase Order to confirm the order, and 3) upon delivery, a Goods Receipt Note is issued by the receiving company to acknowledge receipt of the delivered items. Maintaining quality certification and following the proper purchasing cycle steps help ensure a reliable vendor and output.

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    © All Rights Reserved
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    PURCHASING CYCLE AND VENDOR MANAGEMENT

    Vendor Selection
    Having a reliable output with a low rejection percentage is desired and a critical
    requirement for companies. What is a standard industry method to measure
    reliability of a vendor?

    Measuring the company’s investment in R&D

    Maintaining good after sales services

    Measure performance through quality vendor certification programs

    ✓ Correct
    Feedback:
    Quality certification program helps to monitor reliability of vendor processes

    Measuring the vendor’s just in time capabilities


    Purchasing Cycle
    What is the correct order of the following points?

     
    i. Request for Quotation (RFQ) is a standard business process followed when an
    organisation wants to buy a specific product or service and vendors share their
    quotations.
    ii. A Goods Receipt Note (GRN) is issued to record the delivery of items from your
    suppliers. It is also known as a delivery note, which is used as an evidence that goods
    are delivered and the customers have received them. Moreover, both suppliers and
    customers use Goods Receipt Note (GRN) to compare orders and delivery quantities.
    iii. The company issues a Purchase Order (PO) to a supplier to confirm the orders.

    i, ii, iii
     

    iii, ii, i
     

    i, iii, ii
     
    ✓ Correct
    Feedback:
    RFQ (Request for Quotation) is for issuing requests for quotation, receiving and
    analyzing quotations and selecting the right supplier based on the quotations
    received

    Once the negotiation process is over with a supplier, PO is raised so that supplier can
    start production and deliver accordingly.

    On receiving and accepting goods, a GRN (Goods Receipt Note) is issued. This also
    helps in the supplier's invoicing process. 

    ii, i, iii

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