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Understanding the Procurement Process

The document discusses the procurement process at Super Skateboard Builders including the key steps: requisition, purchase order, receiving goods, receiving invoice, and payment. It describes the physical, document, and information flows. It then explains how enterprise systems like SAP can automate the procurement process, capturing data at each step to facilitate monitoring and analytics. Finally, it briefly introduces the concept of eProcurement.

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23 views22 pages

Understanding the Procurement Process

The document discusses the procurement process at Super Skateboard Builders including the key steps: requisition, purchase order, receiving goods, receiving invoice, and payment. It describes the physical, document, and information flows. It then explains how enterprise systems like SAP can automate the procurement process, capturing data at each step to facilitate monitoring and analytics. Finally, it briefly introduces the concept of eProcurement.

Uploaded by

ayushjainonline
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

INFORMATION SYSTEMS @ X

INFO245 The Procurement Process

INFO245

INFORMATION SYSTEMS @ X

Outline
SSB Intro A Basic Procurement Process (manual process) Role of Enterprise Systems in the Procurement Process eProcurement

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Super Skateboard Builders, Inc.


History Product Line Customers Vendors Information Systems

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A Basic Procurement Process


Definition

Requisition to pay All the steps needed to acquire/procure material and pay the vendor B2C vs. B2B commerce Importance of standardized processes in B2B
Physical Flow Document and Data Flow Information Flow

Key Concepts and Assumptions


Conceptual Framework

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Physical / Document Flow

Physical

Document

Trigger: Need a product from office supplies, raw material trading goods Stakeholders: Warehouse (in this case), purchasing, accounting Who is involved in each step? Communication and coordination: physical documents

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Purchase Requisition

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Purchase Order

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Packing List

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A Goods Receipt Document

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A Vender Invoice

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Information Flow
Instance-Level Information

Status of a purchase requisition / order Has a requisition been acted on? Has a PO been created and sent Have goods been received for the requisition / order? When? Where are the goods? If received, has an invoice been received? Paid? If not received, when can we expect the goods? How well is the process doing? How much time does it take on average? Per material? Per vendor? Which vendors are prompt? Who habitually delivers late? What do we buy most often? From with vendor(s)?

Process-Level Information

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Role of enterprise systems in the procurement process


Execute the Process

Create Purchase Requisition Create Purchase Order Receive Shipment Receive Invoice Send Payment

Capture and Store Process Data Monitor the Process


Instance-Level Information Flow Process-Level Information Flow

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Enterprise systems in Procurement

1. Create Purchase Requisition 2. Create Purchase Order 3. Receive Shipment 4. Receive Invoice 5. Send Payment INFO245

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Purchase Requisition in SAP

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Purchase Order in SAP

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Goods Receipt in SAP

1 6

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Invoice Receipt in SAP

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Vender Payment in SAP Initial Screen

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Vender Payment in SAP Processing

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Process monitoring (Information flow)


Instance level status information

Status of a purchase requisition / order (PO history)


How is the process doing?

Process level aggregate information

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Process-Level Information

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eProcurement
[Link] w What is eVA / eProcurement? What do you think bidding means? What are the benefits to (small) suppliers? What are benefits to the State of Virginia?

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