procurement software

8/2/2019 Procurement Software

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PROCUREMENT SOFTWAREis business software that helps to automate the purchasing function of organizations.

Activities including

Raising and approving purchase orders,

selecting and ordering the product or service

receiving and matching the invoice and order

paying the bill if handled electronically,Advantages :

Enabling the procurement department to see everything that is ordered

Ensure that nothing can be ordered without correct approvals

And lets them get the best value by combining several orders for the same type ofgood or

Even getting suppliers to bid for the business.Suppliers of this software include SAP for very large companies, CODA for large and mid-marketorganizations and Sage for small businesses

INVENTORY SOFTWAREAccurate inventory and up-to-date sales tracking are vital to operating and succeeding

with a business. Inventory Control Software performs followings task

Updated Quantity and location of inventorya. including raw materials,b. work-in-processc. finished goods

Issuance of Material to Different Departments, and update the stores.

Provide Acute Reporting Depending upon the Data Added in.

The Procurement and inventory management software developed in Tsml provides these basicfunctions with reliability and as software development life cycle is a continues process ofstriving for better so the software keeps evolving as the requirements of business changes,

As this software was developed with

1. Major Aims

a. Specifying the purchase of items strongly related to department and activity ofTSML thus making sure that the items purchased by one department for aspecific Activity also used accordingly, and they may not be allowed to issue toother departments.

b. All the Items were added in the database according to a well defined class andcategory, specifying that at creation of each item a code is generatedaccordingly so each item is identified uniquely in database.

The Basic Cycle for the Software include

MPR(MATERIAL PURCHASE REQUISITION)

a. The User of a Department Creates a MPR (Material Purchase Requisition) foritems or service

1. The Mpr is raised with following details

1. Area where the item is required (Tsml specified Areas)

2. Discipline identifying the cost center for Accounts Department.

3. Activity for which the items will be used

4. Delivery where the items will be delivered (Site/HO).


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5. Routine/ Urgent/Emergency material requirement status.2. User Selects the Items required by

1. Class indicates the Class of item.

2. Category indicates the Category of item

3. Items code indicate the Unique code of item

4. Required date for items

5. Approx value value if known

6. Remarks if any

7. Free/ Reserve Quantity Columns indicate weather if the uniqueitems any quantity exists.

8. Terms and conditions of user for items

9. Signatures of User and Required personal to raise MPR.

DetailsThe user create the Mpr Form with required details that will properly store the datain the database later to be viewed in different reports

Advantages

The items purchased are only accessible to specified user/department, onrelevant activity. Thus any items received in store for one activity by onedepartment cannot be issued to any one else.

Store does not need to check inventory as user will be initiating the issuanceprocess as he can issue items he/his department purchase for specific activity.

Disadvantages

Very difficult for store to physically keep similar items with department activitytag.

RFQ(REQUEST FOR QUOTATION)

b. The procurement department Creates the Request for Quotation and send it to

different Supplier to get Quotation1. Suppliername of the supplier to whom the quotation will be sent.

2. Reference No. Manual No. given by Procurement department totheir

3. Days required to submit the quotation.

4. Percentage damage faced if order not full filled in given time.

5. MPR No. and Items of MPR Selected.

6. Terms and Condition of user as well as Procurement staff.

7. Signatures of Relevant Procurement Staff.

REQ(RECEIVED QUOTATION)

c. The procurement Staff updates the Received Quotation with respect to theRelevant Supplier to create Comparative statement between different suppliers

1. Suppliername of the supplier from whom we received quotation

2. Supplier Reference No. Number given to quotation by Supplier.

3. Reference Date submitting date of quotation.

4. RFQ No.MPR No. Item code. Selection of supplier quoted items


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5. Quantity Received from supplier.

6. Replace Item if the Quoted items are different from mpr theProcurement Department creates the new Items and Place it inReplace items so items difference is shown on Comparativestatement if accepted by user. They will replace MPR items.

7. Terms and Condition of supplier added by Procurement staff.

8. Signatures of Relevant Procurement Staff.

C.S(COMPARATIVE STATEMENT)

d. Comparative Statement is created on the base of Quotation and selected byReference No of Request for Quotation.Shows the items and rates quoted by different supplier for comparisonInclude Mpr No. item names their remarks on quotation, each supplier deliverydate, unit value, total value. And grand total of C.S along Discount, The C.S issigned by relevant end-user, procurement, technical, finance, administration.

P.O(Purchase- ORDER)

e. PO is created by Procurement Department against the Items Purchased forAccounts Department to Pay to supplier.

1. Supplier name of supplier against whom pay order will made.

2. Mode of delivery: By Air, Ship or Road

3. Partial delivery Allowed or not Allowed

4. Payment terms Mutually Agreed b/w supplier & Procurement

5. Instructions if any

6. General Terms and Condition of TSML added by Procurementstaff.

7. Special Terms and Condition of User added by End-user

8. Signatures of Relevant Procurement Staff.G.I

(GATE INWARD)

f. GI is Gate Inward created by Store Department against the Items Received atstore.

1. PO No. of Purchase order against which the item was received.

2. MPRNO. Item No. of items received

3. Quantity received by the Store

4. Signatures of Relevant store Staff.

QC/QA(QUALITY CHECKING/QUALITY ASSURANCE)g. QC/QA is performed by Quality Assurance Department and User to check the

items are those required by user and Technically ok

1. G.I No. of store against which the item was received.

2. MPRNO. Item Code. of items received

3. Condition of items received Satisfy or Unsatisfied

4. Quantity of item received/Checked.


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5. Signatures of Relevant Quality Assurance Staff and end User.

GRN/RN(GOODS RECEIVED NOTE OR REJECTION NOTE)

h. GRN / RN is created by the store against items received against Quality Checking

1. QC No of Quality Check performed by the QC Dept and EndUser.2. MPRNO. Item Code. of items to select.

3. Quantity of item received.

4. Signatures of Relevant Store Staff.

5. Same incase of Rejection Note.

MIV(MATERIAL ISSUANCE VOUCHER)

i. MIV is generated by the user1. Status of Items

a. Own (user own items)

b. Free ( Items in free Stock)

c. Reserve (Items in Reserve for some activity)2. Delivery Location3. Activity

4. MPRNO. Item Code. of items to select.

5. Quantity of item needed.

6. Signatures of Relevant Store Staff and End User.

procurement software

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