KB20230000/01: Best Practice Processes for Purchasing and Suppliers

Suppliers & Purchasing:

• Ensure all Purchase Request or Purchase Orders are approved electronically.
• If your system can allow for it send approved Purchase Orders automatically via email to the supplier.
• If possible, have the supplier price list in your ERP system. Negotiate on prices that is valid for a defined period of time.
• Receive all stock into the warehouse and into your ERP solution immediately upon delivery.
• If your system can allow for it, manage tolerances to ensure you do not receive stock at a higher price than was agreed on the Purchase Order.
• Based on your procurement policy, do not receive a higher quantity than was ordered on the Purchase Order.
• If your solution allows for it, receive damaged stock into your ERP as a different Stock Status.
• Ensure supplier invoices, transport invoices and import costs invoices are all captured asap to ensure correct landed cost for your stock products.
• Ensure supplier invoices are gathered throughout the month. Have a report in place that can easily identify where an invoice has not been processed.
• Have a report in place to show what Orders was placed, what stock was received that should be accrued for.
• If your ERP system allows for a Goods Received Not Invoiced (GRNI / PO Suspense Clearing) account, then recon this on a monthly basis to ensure all Receipts had a corresponding Supplier Invoice.
• If you return goods to the supplier, ensure you get them replaced or a credit note sent. Always make sure your actual movement with stock is replicated in your ERP system.
• If your ERP system allows for it, send an automated report to your warehouse every morning for deliveries expected on that day (based on the expected receipt date on your Purchase Order).