Procurement is an operational and liquidity decision
The lowest price is not always the best offer. Supplier delays or poor quality may halt production and increase costs. Set criteria including price, delivery date, payment terms, and acceptance rate, then link the purchasing decision to the real need.
Separate the request from approval and receipt
The department records its need, the purchasing officer compares the offers, and the department approves the request according to company policy. When the goods arrive, the warehouse reviews the quantity and condition, then the accountant matches the invoice with the order and receipt. Separation does not mean bureaucracy; It is to prevent one person from controlling the entire cycle without review.
- Request a need with justification and required date.
- Compare offers that are equivalent in quantity and specification.
- Approval according to specific value limits.
- Match quantity and price before paying.
Example: Difference between invoice and receipt
If the invoice was for 100 units and the warehouse received 95, do not approve full payment without explanation. Five units may be in a subsequent shipment, damaged, or document error. Maintain the status and correspondence with the supplier, then adopt the correct handling.
Make supplier evaluation transaction-based
Review delays, repeated item rejections, and price differences, not just personal impressions. RedERP links purchasing documents to inventory and accounts, helping you get back to the root of the problem. Prepare a supplier list and item specifications before implementation, then test one complete purchasing cycle.