2.1. Overview & Workflows

After the companies determine their business needs for acquiring products or services, the purchasing process in Kiu BMP can be initiated. The detailed process for Purchasing is as following:

– Firstly, after the companies identify their requirements, they need to consider which vendors can provide the most reasonable price for the products/ services. Therefore the workflow of sales must begin with negotiating specific conditions relating to suppliers and orders in the quotation by choosing Purchase Agreement. There are 2 default tenders of Purchase Agreement namely Purchase tender and Blanket Order.

For a Purchase tender, you can receive quotations from many suppliers then you can choose which suppliers can provide the best offers for a list of products or services.

For a “Blanket Order”, the company can order multiple times without creating new additional requests for quotation or other renegotiations, with one supplier for a specific time period, for instance one year.

– Secondly, after the company has identified the most suitable price for products/ services from many different suppliers by using Purchase agreement, they can officially confirm the price with the most suitable supplier by sending the Request for Quotation to this supplier.

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

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

– The “Purchase Order” is the official order that the company place to the selected supplier, either through Request For Quotation, Purchase Tender, or Blanket Order or when the company proceeding directly to a Purchase Order when the company knows the supplier and price in advance, and don’t need to request any quotations.

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

– Case 1: Payment upon reception:  In KIU BMP system, after Purchase order has been confirmed, you can receive an invoice from your supplier,called a “Vendor Bill”, then register payment before your supplier deliver the products.

– Case 2: Payment after reception: After you had created and confirmed the Purchase Orders, your supplier will deliver your products as agreed. Within the Kiu BMP system, this creates an “Incoming Shipment”. Along with the Incoming Shipment you will receive a “Vendor Bill”. When you receive an Incoming Shipment, compare it to the Vendor Bill to validate that you have received the products you will pay for.