PROCUREMENT

LOGISTICS - II
OUTLINE
 Determinants of Requirement and External Procurement
 Integration with requirements planning
 Purchase requisition

 Order Processing
 Request for Quotation and Vendor Quotation
 Purchase order
 Confirmations

 Delivery and Invoice Verification

 Goods receipt
 Vendor returns
 Invoice verification and handling of payments
 Integration into inventory management
OUTLINE
 Optimizing Purchasing
 Supply Source Determination
 Outline Agreements
 Vendor Evaluation
 Release Procedure
 DETERMINANTS OF REQUIREMENT
AND EXTERNAL PROCUREMENT
 Integration with requirements planning
 guaranteeing material availability

 With materials requirement planning, we can generally differentiate between consumption-based and

deterministic planning
 Consumption-based planning

 based on past demand values and thus has is not related to any production plans

 Reorder point planning

 Forecast-based planning

 Time-phased planning

 In-house production

 External procurement
EXTERNAL PROCUREMENT
PROCESS
 DETERMINANTS OF REQUIREMENT
AND EXTERNAL PROCUREMENT
 Purchase Requisition
 A purchase requisition represents a request to the Purchasing department to procure a

material or service in a specified quantity and at a specific point in time.

 Planning

 Distribution logistics

 Supplier Relationship Management

PURCHASE REQUISITION PROCESS
PURCHASE REQUISITION PROCESS
 ORDER PROCESSING
 Order Processing is an actual purchasing process

 Request for Quotation and Vendor Quotation

 Purchase order
 Confirmations
ORDER PROCESSING
REQUEST FOR QUOTATION
AND VENDOR QUOTATION
 PURCHASE ORDER
 Within the context of external procurement, we have already explained above the determination of
requirements, its integration with requirements planning, the creation of a purchase requisition and
source supply determination using RFQ and quotation processing.
 Creating Purchase Orders
 Manual creation
 Conversion of purchase requisitions
 Creation of orders with reference

 AP ERP recognizes the following item types in an order that requires different order processing
 Normal
 Limit
 Consignment
 Stick transfer order
 Third party order
PURCHASE ORDER SAP
CONFIRMATION