1. What are the functions of the purchasing department?
The functions of the purchasing department include:
(1) Grasp the required purchasing information in a timely manner and maintain good internal communication.
(2) Investigate and master the supply channels of materials used in production, and find sources of material supply.
(3) Establish a supplier profile and contact the supplier to prevent alternative suppliers from being found in an emergency.
(4) Refer to the raw material market and ask the supplier to quote.
(5) Evaluate the supplier’s supply price, material quality, delivery time, etc., understand the market price trend of the company’s main materials, produce procurement documents, and purchase the required materials.
(6) Coordinate the delivery time of the supplier according to the purchase contract.
(7) Assist the quality department to check the quantity and quality of incoming materials.
(8) Assist the material control department to prevent and treat sluggish and waste materials.
2. What are the main functions and contents of the procurement quality assurance agreement?
(1) The role of quality assurance agreement:
A. Clearly put forward quality requirements for suppliers. The quality requirements and inspection, testing and sampling methods specified in the agreement shall be recognized and fully understood by both parties.
B. Cooperate with suppliers to ensure the quality of purchased products.
(2) Requirements of quality assurance agreement:
A. The quality assurance requirements should be recognized by both parties to prevent hidden dangers to future cooperation.
B. The quality assurance agreement shall specify the inspection methods and requirements.
C. The quality requirements put forward in the quality assurance agreement should take into account the aspects of cost and risk.
(3) The quality assurance requirements provided in the quality assurance agreement may include the following:
A. Product standards mutually recognized by both parties.
B. The supplier implements a quality management system, and the company’s third party evaluates the supplier’s quality system.
C. The company’s acceptance inspection method (including the determination of the acceptable level AQL)
D. Supplier submits inspection and test data records.
E. Complete inspection or sampling inspection and test by the supplier.
F. The procedures / specifications on which inspections or tests are based.
G. Equipment, tools and working conditions used, clarifying methods, equipment, conditions and personnel skills.
3. What are the ways to reduce procurement costs?
The main ways to reduce procurement costs are:
(1) Seek more suitable suppliers.
(2) Look for materials that are more likely to be replaced.
(3) Improve procurement technology, such as increasing the number of purchases.
(4) Improve the original design.
(5) Improve storage and transportation methods and reduce inventory.
(6) Standardize procurement.
4. What does the procurement process include?
(1) Develop and implement procedures to control the quality of procurement to ensure quality control of products supplied by suppliers.
(2) Ensure that suppliers accurately understand the requirements for purchasing products.
(3) Ensure purchases from qualified suppliers. Each supplier’s ability to provide qualified products should be reviewed.
(4) A clear quality assurance agreement should be reached with the supplier and a clear agreement on the verification method to ensure uniform verification results.
(5) A method for solving quality problems shall be developed with the supplier.
(6) The quality records related to the products received and the purchase quality control records shall be kept to facilitate timely resolution and handling of quality issues.
5. How should procurement be implemented?
Procurement consists of four links, and each link consists of several steps.
(1) Purchase plan
The purpose of the plan is to formulate a purchasing plan based on customer needs and production capacity, and make a comprehensive balance to ensure timely supply of materials, while reducing inventory and costs, and reducing urgent orders.
The main links are: assessing order demand, calculating order capacity, and formulating order plans.
(2) Supplier evaluation
The purpose of supplier evaluation is to meet the purchase quality, cost, supply, and service requirements.
The main links of supplier evaluation are: preparation of supplier evaluation, preliminary selection of suppliers, trial production, batch testing, and determination of supplier list.
(3) Purchase order
The purpose of sending orders is to provide qualified raw materials and parts for the production department, and at the same time to evaluate and feedback the performance of the supplier group.
The main links are: order preparation, supplier selection, contract signing, and contract execution tracking.
(4) Purchase management
The main purpose of procurement management is to correctly implement the procurement principles of the enterprise.
The main links are: document approval, including planning, evaluation report, order contract, payment review and approval.
6. How to prepare a purchase order plan?
(1) Understanding market demand
For any production enterprise to make a more accurate order plan, it must first be familiar with the market demand plan, formulate the production demand plan from the further decomposition of market demand, and then formulate quarterly and monthly plans based on the annual plan.
(2) Understanding production needs
A. In order to facilitate the understanding of production material requirements, purchasing planners must be familiar with the common knowledge of production planning processes.
B. MRP comes from: production plan, independent demand forecast, bill of materials file, inventory file.
(3) Prepare basic information of the order
The basic information of the order includes:
A. Vendor information of the order material
B. For materials with multiple suppliers at the same time, the proportion of each order allocated by each supplier is coordinated by the purchasing staff.
C. Order cycle. According to the material items required by the production, the order formulator will query the information system to understand the basic purchasing parameters of the material.
(4) Materials needed for order planning
The contents of the information required for the order plan include:
A. Material name, required quantity and arrival date.
B. Sometimes market demand plan, production plan, and order basic information are attached.
7. How is the BOM file generated?
(1) The bill of materials is the core document of the manufacturing enterprise. The purchasing department should determine the purchase plan according to the bill of materials, the production department should arrange the production according to the bill of materials, the finance department should calculate the product cost based on the bill of materials, and the planning department should determine the cost of the materials based on the bill of materials. Demand planning, other sales, storage and other departments need to use the bill of materials.
(2) The bill of materials contains information on all assemblies, parts and raw materials that make up the product, and provides product composition information for the preparation of the material requirements plan.
(3) The BOM of the enterprise should be stored, maintained, updated, and managed uniformly by a full-time department, and a BOM database should be established to ensure the accuracy, completeness, and generality of the BOM, improve the efficiency of querying, and avoid the use of BOM. The practice of each department’s storage,
(4) Formulation of parts list. The product designer extracts data from the product design drawing to generate a list of all parts and components of the final product, forming a product parts list.
8. How to prepare a purchase order?
(1) Material items familiar with demand order operations
There are many types of orders. Order personnel should first be familiar with the order plan, take the time to understand the material items, take the time to understand the technical information of materials, etc .: Direct procurement from abroad may get better quality and lower prices, but at the same time increase Order operation is difficult, the procedures are complicated, and the delivery time is long.
(2) Compare / confirm prices
Buyers have the right to place orders / contracts with the most appropriately priced suppliers in the supplier group to safeguard the best interests of the business.
(3) Confirm the standard and quantity of required materials
9. How to track purchase contracts?
(1) Tracking process files
A. For the procurement of any outsourced parts (materials that need to be processed by the supplier), the order personnel should track the process documents provided to the supplier.
B. If it is found that the supplier does not have relevant process documents, or the process documents have quality and delivery issues, the supplier should be promptly reminded to modify.
C. Suppliers and time goods are required to pay compensation in accordance with the terms of the contract if they cannot guarantee the quality, quantity and punctual supply.
(2) Tracking the supplier’s raw materials
After receiving the contract, some suppliers think that they are “done”. When necessary, they must remind the suppliers to prepare raw materials in a timely manner, especially for those with poor reputation / less cooperation.
(3) Tracking process
For one-time / large-expense project procurement, equipment procurement, construction procurement, etc., in order to ensure delivery time, quality, procurement personnel need to monitor the processing process, and even participate in the supervision of the processing process.
(4) Track assembly and test
Final assembly and testing is an important part of product production, and it is required that purchasers have a good professional background and industry work experience.
(5) Track packaging and storage
Purchasing staff can learn the storage information of materials by telephone. For important materials, the purchaser is best to visit the supplier site.
For some urgent materials, the procurement personnel must fully track; for suppliers who have a stable and long-term supply, they can consider eliminating the contract tracking link.
10. What are the commonly used contract terms?
A formal sales contract includes the following:
(1) Name
(2) Number
(3) Date of signing
(4) Place of signing
(5) Name of buyer and seller
(6) Address
(7) Preamble to the contract
(8) Product name
(9) Quality specifications
(10) Quantity
(11) Packaging
(12) Unit price and total price
(13) Delivery period
(14) Place of arrival
(15) Payment
(16) Insurance
(17) Commodity inspection
(18) Arbitration
(19) Force Majeure
(20) Number of contracts
(21) Use of language and its effectiveness
(22) Annex
(23) Effective date of the contract
(24) Signature and seal of both parties
The following are optional parts
(1) Value preservation clause
(2) Price adjustment clause
(3) Error range clause
(4) Terms applicable to law