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Materials Management Deptt.

For internal Training Purpose

Procurement
Contracts Warehouse Management

Proprietary
Nomination Tendering

The Approval Note is the first and foremost requirement of all types of procurement, services and contracts
Highlighting Features
Top Half of the approval note

1.Subject 2. Description 2.1. Background 2.2. Exact Requirement 2.3. Approximate cost 3. Budget Reference 3.1. Budget Head 3.2. Balance Available 3.3. Proposed amount
Bottom Half of Approval Note Raised by Verified by Forwarded by Concurred by Approved by (Officer User Deptt.) (Manager User Deptt.) (Respective CM) (Finance) (Plant Head)

Important

All the approvals are based on the Delegation of Authority

1. File no. for every approval note 2. Checking Material Code availability and detailed verification of approval. 3. Preparation of new material Code

4. Intimation to User Deptt. for PR, maintaining File


5. Preparation for Vendor approval 6. Request for Quotation 7. Follow-up with vendors reg. submission of quotations

8. Opening of Tender 9. Request for extension of tender opening date & update in SAP (if required) 10. Forwarding tenders for technical evaluation 11. Follow-up with user deptt. reg. technical evaluation 12. Follow-up with vendors for technical clarifications (if any) 13. Preparation of Comparative statement 14. Follow-up with Finance reg. submission of comparative statement

15. Negotiation with bidders (wherever applicable) 16. Approval for Purchase 17. Preparation of Purchase Order

18. Sending Purchase Order to vendors and copies to file


19. Sending copy of Purchase Order to user deptt.

20. Keep track of due date for delivery follow-up with vendors
21. Collect all the documents e.g. Invoice, Challan, Test Certificates etc 22. Keep track of payment mode follow-up with Finance deptt

23. In case of Import Procurements:a) get confirmation on Commercial Terms from supplier b) Process for Letter of Credit (wherever applicable) c) Process for advance payment (wherever applicable)

24. In case of contracts:a) get committee approval (wherever applicable) b) Process for EMD submission and release (wherever applicable) c) Process for PBG submission and release (wherever applicable)

RFQ / Quotation

Purchasing

Purchase order

Vendor A
Purchase requisition RFQ Quotation

Source of supply

Vendor B

Vendor C
Rejection letter

Master data

ster Data in the Procurement Process

Purchase order Header

Items 10 __________ 20 __________ 30 __________

Material master recd Purchasing info record

Vendor master recd

Procurement Cycle

Purch. req.

8
Invoice

Payment processing

Determination of reqmts

Purch. ord.

?
7

10 20 30

Invoice verification

Procurement

Source determination

Goods receipt
Purchase order
10 20 30

Vendor selection

PO monitoring

PO processing

Material is received against Purchase order then

Quantity is Checked Quality is Checked If the inspection result is ok then clear the GRN and make final GRN and send it to Stores and inform FI/AC. If not then initiate the return process If Material received is in excess then Prepare Excess Supply report. Return the excess supply / accept with user approval.

If Material received is in Short supply then

Prepare Short Supply report. Intimate supplier.


Goods Inspection

Material specific parameters are checked.

For non-standard item item is inspected by the user department.


Excess material is accepted in certain circumstances.

PLL / non-PLL
Returnable / non-Returnable Inward / Outward
Specific SOPs are followed for clearance of gate pass
All the gate passes of non-returnable outward (PLL or, nonPLL) has to be approved by Plant Head

Goods Issue
a) b) c)

Material Requisition Form or Material Issue Request is sent to stores (through maintenance order / General). Stock is verified. If stock is sufficient then make Material Issue Note. Otherwise intimate user

Physical Inventory or Inventory Verification


Twice in a Year

Monthly Report
Weekly review of Open Purchase Requisitions and open Purchase Orders Monthly review of pending goods delivery Monthly review of open Service orders / Contracts Monthly review of Inventory (high value & critical), Goods Receipt and Goods Issue Quarterly review of Critical Spares stock Half-yearly review of non-moving inventory Monthly review of Audit compliance

Monthly review of minimum level/maximum level inventory


Monthly review of safety items stock, chemicals stock, cylinders stock. Quarterly review of self life materials Monthly review of returnable gate pass materials Monthly review of payments, clearance of urgent payments, customs duty etc. Monthly review of EMD, PBG clearances

S.N. Day-1

Details of training in brief Briefing about procurement, contract and warehousing process. Providing Sample Files for review on basic process i.e Approval, DoA, Budget Reference, Indent Form, material Master Review at 4 PM Elaborate on procurement process - Tendering, proprieatary, nomination procurement

Day-2

Contracts procedure and documents Providing sample files for review in relation to above Review at 4 PM Warehousing process Material stock checking and reports Inventory verification Review at 4 PM Vendor communication, delivery of materials, follow-up system SAP entry of following:Service Entry , Material Issue Goods Receipt and inspection process Review at 4 PM SAP entry of material master, Request for quotation, MIS Service orders - one time, ARC, AMC etc. Material Gate Pass Entry/exit system Written Test on Training imparted during the last 5 days. Feedback.

Day-3

Day-4

Day-5