In this article, we will discuss about the procurement business processes, what does it do, how the standard plot in large factories, tasks and authority, as well as what are the problems to be noticed by the perpetrators of this procurement function in the factory. Procurement in Indonesia we know as procurement, is one of the basic business processes in manufacturing that in Indonesia more often we know the Department of purchasing. As the name suggests, the main function of this procurement is in the procurement of goods. Of course, in the function ideally, the main task of the Division of purchasing/procurement is to purchase goods/items. Although it is in the process of procurement, there are two other functions involved, namely the examination of stock of goods, as well as the calculation and payment of debts. Inspection stock goods are essentially done in the business process of inventory, which is certainly done by the Department warehouse (warehouse of spare parts, raw materials, auxiliary materials, finished goods, etc.). Whereas the calculation of debt and payment is made in the business process accounting, and finance. So, the task of purchasing departments are limited to buying goods/services. What are the elements that need to be noticed in buying goods/services required by the company? The main course of the selected vendor.
Choosing A Vendor.
What factors need to be taken care of by the perpetrators of the operational purchasing when selecting a vendor? There are three main things to note:
- The price offered vendors.
Of course, in the principle of economy, purchasing have to figure out what price offered by vendors. To know this, the purchaser must be based on the vendor's official quotation given by the vendor. In addition to looking at the price offered, the purchaser must also see, how TOP (Terms Of Payment) provided by the vendor. A lot of companies who don't mind paying more expensive original payment deadline gets longer. This corresponds with the cashflow that is also an important factor in running businesses manufacture.
- Quality of goods owned by the vendor.
In addition to price, the second point that should be viewed by the purchaser is the quality possessed by the vendor. Purchasing Division should have a track record of good finish against a vendor as consideration will be using the services of these vendors in the future again or not. Particularly in the case of the purchase of the raw material (raw material), the quality of the goods provided the vendors largely determine the quality of the finished goods companies after the production process later.
- The time of fulfilment of the vendor.
Remember also that the production process is always chasing each other with time. Purchasing is expected to provide the goods, whether it's spare parts, raw materials, or more in a hurry. For that, a track record of shipping vendors should also be one of the important considerations of a purchaser.
Some of the problems that often occur in the procurement business processes
Of course, in the business world landscape full of labyrinth, there are problems that will be dihadapai in this procurement business processes. Some of them that I often encounter in place of my clients are as follows:
Meet the minimum order
As we know, in the process of business inventory, we know the level inventory function set how a minimum stock, reorder point, and maximal stock owned by the company. In mathematics, the numbers count up three levels in inventory that could be filled by the very purchasing. But the thing is, in practice, we see there are so many obstacles, especially on the minimum order for each vendor. It could just be the stuff needed by the Department is merely 3 pcs. But in the process of purchasing, it turns out that a requirement of at least the quantity purchased is 1 dozen (12 pcs). Of course, this will cause the purchasing dilematis. Especially if the average use of such goods is low.
Fluctuating price change is indeed becoming a constraint tersendara for purchasing departments. It can be compounded if the price changes occur in the midst of the process of delivery. For example, purchasing has made purchasing sirtu PO 1 ton. But truck carrier can only carry 500 kg per shipment. This means that delivery should be done twice. The first shipment was received well. But on the second shipment, in the middle of the street, the vendors were forced to raise prices because of various factors. As a result, the purchasing companies have to do revision on the PO. Easy? The problem, not necessarily the new rates approved by the party finance.
Duped by a vendor
I think, for this one, its shape can be varied. The bottom line is, this purchasing should really be careful in dealing with vendors, especially when costs incurred including large. That's my discussion on business procurement process. May be useful.