Erp Process| Purchase Process | Sales Process | Manufacturing Process

Purchase process

• The process starts with a demand or requirements.

• A purchase requisition(PR) is generated.

• A request for quotation(RFQ) is then raised. It is a document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.

• A review is undertaken where the purchase order is placed on supplier who is given best offer.

•  A purchase order, when given to a supplier, should part number, description, quantity, and price of the goods or services ordered. and all other agreements pertinent to the purchase and its execution by the supplier.

• The supplier then delivers the products or service.

• The goods will be received against the goods receipt after going through the inspection process.

• Then the payment is made and transferred to the supplier.

The major objectives of Purchasing are to:

• Maintain the quality and the value of the company’s products. 
• Minimize cash tied up in inventory 
• Strengthen the Organization’s competitive position

Important terminologies in Purchase Process:

• Purchase requisition, 
• Blanket Order, Request for Proposal
• Request for Quotation, Supplier Schedule
• Supplier Contract, Invoice.

Sales Process

• Sales process is an approach to dealing or selling a product or service.

• The process starts with sales enquiry from customer. It is a primary response from prospective customers, generally following an advertisement announcement or sales promotion campaign. In other words it’s a RFQ from customer.

• Then sales quotation is given to customer which details the part, quantity, price and delivery date.

• If sales quotation is wins, after negotiating with customer, then it is converted into Customer order.

• The product or service is delivered through customer order with delivery note.

• An Invoice is sent to customer along with the delivery note.

IMPORTANT TERMINOLOGIES RELATED TO SALES:

• Inquiry
• Quotation
• Delivery
• Billing
• Consignment
• Third party
• Deemed Exports
• Customer Order
• Cancellation Reasons

Manufacturing Process

• Ex: Moulding, Painting, Sub Assembly, Assembly, etc.

• The process starts with demand or requirements.

• A Shop Order Requisition is generated. It is an authorization that identifies the items and quantities to be produced in specified date.

• Then it is converted into Shop Order based on the capacity and priority. Shop order is a document, group of documents.
• Shop Order is executed by set of actions i.e., Issuing Materials, Reporting Operations.

• Then the semi-finished or finished goods are stored in their respective storage locations.