DOCUMENTS USED IN PURCHASE DEPARTMENT

Purchasing refers to procurement of product and services from external providers. These products and services are necessary to run day to day activities and operational control of an organization. 

Organization of any size whether small or large need supplies and materials to incorporate them in their final product or to support organizational processes.

For effective purchasing function, following documents are used by purchase department:


1. Procedure for approval and evaluation of supplier/service provider : 

Supplier/service provider approval and evaluation procedure is a methodology defined by organization to ensure that raw material, services or outsourced processes meet expectation of organization in terms of quality and authenticity. Procedure should include information of product/services coming under scope of this document, supplier registration review mechanism, supplier audit and approval steps, supplier performance rating mechanism etc.

2. Supplier registration form: 

Supplier registration form is a tool to collect information from a prospective or existing supplier. Mainly registration form is used during new supplier development process to get relevant information from them and getting them registered. Supplier registration form generally ask information regarding infrastructure, plant and machinery, statutory and regulatory, scope of supply etc. from prospective supplier.

3. List of approved suppliers: 

As name indicates, it is simply a list having suppliers/service providers approved by organization. The list also includes address and contact details of suppliers/service providers along with their scope of supply/service. It is helpful in managing suppliers base and order placement.

4. Purchase Indent : 

It is a stage prior to placing purchase order. Purchase indent is basically purchase requirement raised from organization's department. It is usually prepared by stores department or by other department and submitted to purchase department for restoration of stock or new requirements. Purchase indent contains information regarding requester, date, item details, item quantity, delivery scheduled, authorizer etc. 

5. Purchase Order: 

A purchase order is a formal documented order placed by buyer (Organization) to seller (Supplier) stating their requirement of products to be procure at agreed price. Purchase order indicates details of item(s) to be procured, quantity, specification, delivery schedule, delivery location, price, tax information, billing address, suppliers details etc. 

6. Work Order:  

Work order is very similar to purchase order but only difference between Purchase Order and Work Order is that Work Order is placed against requirement of services to be procured. Example of services to be procured can be calibration service, machining service, environmental testing service, repairing service of machinery etc. It contains details same as the Purchase Order has but with only difference that Work order has details of services to be procured instead of product. 

7. Supplier/service provider evaluation form: 

Supplier evaluation form is a tool to evaluate existing and potential suppliers on several criteria set by organization. It contains several parameters to judge if a suppliers meets the expectation of organization in terms of quality, delivery, response, cost etc.


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