Steps in the Purchasing Cycle

1. Recognize, describe, define the need

A. Classification Of Needs 1. 2. 3. 4. 5. Type Of Need Strategic Or Operational? Repetitive Or Non-Repetitive Size (quantity; dollars) Speed/Timing

B. Specification Of Need

2. Transmit the need (requisitions)

A. standard requisitions B. traveling requisitions
1

C. BOM requisition

3. Determine sources, investigate, and select supplier/analyze bids 4. Prepare and issue the PO 5. Follow-up the order (including expediting and de-expediting) 6. Receive and inspect the material (use of receiving report: purchasing, accounting, user, receiving) 7. Clearance of the invoice and payment to supplier

8. Close the order/records

Steps in the Purchasing Cycle

1. A. Recognize, describe, define the need Classification Of Needs 1. 2. 3. 4. 5. B. 2. A. B. C. 3. 4. 5. 6. Type Of Need Strategic Or Operational? Repetitive Or Non-Repetitive Size (quantity; dollars) Speed/Timing

Specification Of Need Transmit the need (requisitions) standard requisitions traveling requisitions BOM requisition Determine sources, investigate, and select supplier/analyze bids Prepare and issue the PO Follow-up the order (including expediting and de-expediting) Receive and inspect the material (use of receiving report: purchasing, accounting, user, receiving) Clearance of the invoice and payment to supplier

7.

8.

Close the order/records 4