2.1. Overview & Workflows

 

After a company determines their business need for acquiring a specific or list of products or services, the purchasing process in Kiu BMP can be initiated. The detailed process for Purchasing is as follows:

First, a company identifies their requirements. Then considers which vendors can provide the most reasonable price for a specific or a list of products or services. After that, sales workflow begins by negotiating specific conditions set to the suppliers and the order in the quotation by choosing Purchase Agreement. There are 2 default tenders of Purchase Agreement namely Purchase tender and Blanket Order.

  • Purchase tender allows you to receive quotations from multiple suppliers to provide the best offer for a list of products or services.
  • Blanket Order is an agreement between a company and the supplier to deliver goods or services with a set price on a recurring basis over a specified time period. This process allows the company to order multiple times without creating new or additional requests for quotation or other renegotiations.

Secondly, after the company identifies the most suitable price for a specific or list of products or services from multiple suppliers by using Purchase Agreement, they can officially confirm the price with the most suitable supplier by sending a Request for Quotation to the supplier.

The “Request for Quotation” is used to send your list of desired products to suppliers and is a type of procurement solicitation in which your company invites a supplier to bid for a specific or list of products or services. Once a supplier responds to your request for quotation with a specific price and other payment terms, you can choose to proceed to officially purchase or turn down the offer.

A “Request for Quotation” is used to establish the price for goods or services between your company, and a single supplier. Once the company confirms their price and purchase from a “Request for Quotation”, a “Purchase Tender”, or a “Blanket Order”, they can proceed to issue a “Purchase Order”.

Purchase Order is the official order that a company places to the selected supplier, either through a Request For Quotation, Purchase Tender, or a Blanket Order or when the company decides to proceed directly to a Purchase Order. This usually happens when the company is already aware of the price from a supplier and don’t need to request for more quotations.

Based on the contract with the vendor, you can choose to pay for the purchase before the delivery of the goods (Option 1: Payment upon receipt), or receive the goods after payment (Option 2: Payment after receipt).

Option 1: Payment upon receipt:  In Kiu BMP, once a Purchase order has been confirmed, you will receive an invoice from your supplier called “Vendor Bill”, then register the payment before your supplier delivers the products.

Option 2: Payment after receipt: After you have created and confirmed the Purchase Order, and the supplier delivers your products as agreed, Kiu BMP system will create an “Incoming Shipment”. Along with the Incoming Shipment you will receive a “Vendor Bill”. When you receive an Incoming Shipment, compare it with the Vendor Bill to validate that you have received the products you will pay for.

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