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Purchasing: Integration into TSL

Solution

 

 

Suggested process for migrating from an ad-hoc Purchase Order Processing (POP) system to the TSL POP/PIP methods. There is scope to merge the Goods Receiver with Goods-In Administration roles, but the key requirement to record events as they occur remains valid:
  • The purchase
  • The receipt
  • Stock-Incrementation
  • Sale - Stock-Decrementation

Note the separation of The Receipt and Stock-Incrementation. It is possible to receive stock that was never ordered. These items should be kept in 'quarantine' and eliminated from salable stock prior to their return to the relevant supplier. Of course, un-ordered incoming stock may be retrospectively added to a purchase order, or a new PO may be generated for the purpose of receipt. This action would be performed in accordance with the roles described below.

 

Roles:

 

  • Purchasing Manager
    • Oversee all aspects of purchasing including hand off to accounts
  • Buyer
    • Review stock holding
    • Generate Purchase Orders with suppliers
    • Agree delivery schedule
    • Record Purchase Order details
    • Hands off to Goods Receiver
  • Goods Receiver
    • Interfaces with BUYER via the Purchase Order Book
    • Receives goods, and keeps Goods-receipt records
    • Hands off to Goods-In Administrator: Delivery note + Purchase Order Book
  • Goods In Aministrator
    • Receives Hand-off from Goods-Receiver
    • Processes received goods into stock: Renders goods available for sale
    • Hands off to the Buyer: Un-ordered / over delivered goods count
    • Hands off to Accounts: Completed Receipts
  • Accounts Purchase Invoice Processing
    • Receive Hand-off from Goods-In Administrator
    • Receive supplier invoices.
    • Process supplier invoices with reference to received and documented goods.
      • Hand off to GI Admin: Processed GI notes and other paperwork for archiving

 

 

PO and Goods in Process Change Management
STEP
Description Notes and Expected Benefits            
1   Overview
Generate a plan document that can be circulated to explain this implementation process and what we aim to achieve.
Better engagement with the process of implementation
A touch stone to test where we are in the plan. and whether we are staying 'on task'.
2 BUYER 

Buying

Create an order book or other suitable recording medium to contain ALL purchase orders raised by ALL buyers.
Book contains:
Header

Date of Purchase Instruction
Who placed the order
The Supplier
Expected delivery date
Any relevant notes, like special pricing ...

1 line per SKU including:
BMS Item Number
Supplier SKU Code
SKU name if required (so we know what was ordered)
Quantity ordered
Expected line value

Buyer to ensure that ordered goods appear as stock items in the BMS

No restrictions to the existing ordering processes, that is to say ordering can continue as it does currently, with the single addition of the records kept in this book.


Better control over expected financial liability.
Better visibility of what gets ordered and at what frequency.

Gentle introduction to controlled Purchasing
3a Goods Receiver  Goods In: Step 1
Paperwork (goods in notes / despatch notes) will be collected at the point of physical receipt.
The person receiving the items will annotate the document(s) with counted received quantities.
The document(s) will be authorized by the physical receiver.
Hand-off to GI Admin
Better stock control

Items received without paperwork will be identified at either by GI Admin as un-ordered stock and processed accordingly.
3b Goods-In Admin

Goods In: Step 2
Agree and publish a goods in process.

Tasks and instructions may include:
- Book in goods received when items are referenced in the order book
- Items not referenced in the order book are to be quarantined and remain NOT FOR SALE until The Purchasing Manager has had a chance to find out who placed the order, and what was expected. A new PO may be required.
- Batches of used traded goods brought are considered exceptions to these rules. In this case, raise a PO and manually list the received items with a purchase price provided by the person bringing the items into the company... Then book the items in. Items may not be booked in until Purchase Prices have been collected.
- Unlisted SKU's will be quarantined and remain NOT FOR SALE until they have been created on the system.
- Over deliveries will be referred back to the BUYER and held in quarantine until either a PO is raised / amended allowing the goods to be received normally, or returned to supplier (without a supplier credit).

Better control over incoming physical stock.
Better visibility of over supply / under supply
Advanced indication of Used-Item purchase values preventing down-stream accounting / sales issues.
4     Purchasing Manager / GiI Admin TSL - Purchase Ordering
The Purchasing Manager will select orders in the Order Book to process as purchase orders in the BMS
Generate PO's in the BMS
Work with Goods-In Admin to develop a process for receiving items via the BMS Purchase Order UI
Provides on the job training to preempt the implementation of BMS based purchase ordering.
Essential for BMS based purchase ordering
5 Purchasing Manager / GI Admin Stock Checking / Stock Adjustments
The Purchasing Manager will select items from the Order Book for stock checking.
Work with Goods-In Admin to develop a process for
- checking stock
- recording / authorising adjustments
- recording the stock check date
Routine stock checking for high turnover items.
Better stock control.
Lead in to accurate stock figures which is essential for BMS based purchase ordering
6 Purchasing Manager Stock Management
The Purchasing Manager to set Min / Max stock figures in the BMS so that the BMS can begin to provide buying suggestions for routinely bought (and other) stock items.
Start to generate Purchase Orders before stock is depleted.
Better customer service
Simplified ordering.
7 Purchasing Manager

BMS Based Purchase Ordering
The Purchasing Manager to introduce BMS based ordering for specific SKU's.
- Provide training to those individuals that will be using the system
- Nominate individuals responsible for ordering specific items.
- Work to develop an ordering schedule for routinely stocked items
- Agree parameters for ad-hoc items purchases


SKU's not specifically listed for Stock Management could be ordered via the Order Book if required.

Better overall purchasing control
More efficient purchasing
Better visibility of expected stock
Better visibility of liability




 
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