COMM 226 Chapter Notes - Chapter 7: I.R.S. Records, Supplier Relationship Management, Bargaining Power
7 Feb 2015
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Document Summary
What are the fundamentals of a procurement process. Procurement: is the process of obtaining goods and services. It is an operational process executed hundreds of thousands of times a day in a large organization. Purchase order: written document requesting delivery of a specified quantity of a product or service in return for payment. Raw materials inventory: components of the bicycle such as tires, frames, seats etc. Finished goods inventory: is the completed products waiting for delivery to customers. How did the procurement process at cbi work before sap. Invoice (itemized bill): amount due and the purchase order number. Three-way match: making sure that the data on the invoice matches the data in the purchase order and goods receipt. Warehouse: growth in finished goods inventory reduces warehouse space for raw material inventory. Warehouse manager does not have data on sales price discount. Accounting: three-way match discrepancies take time to correct. Purchasing: purchasing agents not centralized, training experience motivation difference.
