INFO245 The Procurement Process Outline SSB Intro A Basic

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INFO245 The Procurement Process
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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
• Key Concepts and Assumptions
• B2C vs. B2B commerce
• Importance of standardized processes in B2B
• Conceptual Framework
• Physical Flow
• Document and Data Flow
• Information Flow

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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?
• Process-Level Information
• 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)?

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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

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

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Purchase Requisition in SAP
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Purchase Order in SAP
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Goods Receipt in SAP
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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)
• Process level aggregate information
• How is the process doing?

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Process-Level Information
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eProcurement

• http//www.youtube.com/watch?vj_e1bKpnfIw
• 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?