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Is profit made when you buy or when you sell?

1. Regular investigation of non-stock requisitions will provide info re repetative items for possible coding/contract (Need good reporting though)
2. Alternative: Items can be loaded as "order as required" and from movement history decisions can be made whether to carry stock (need constant material master management, should do this for selective items only to prevent unmanageble catalogue.)
3. RFQ method OK but not verbal quote - disputes arise frequently
4. 2 quotes between 5000-10 000
5. 3 quotes above 10 000 & tender procedure above 100 000

Thanks for a good comment.

By the way, what percentage of no items does your company have codified?

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Is profit made when you buy or when you sell?

Still getting to know this site - reply might find you twice.

60% coded - not ideal am in process of streamlining processes to change this figure.

Should you be interested in how, etc. I would gladly share some info & would welcome any views, comments.

<5000 - 1 quote, either verbal/written
>5000 to 100000 - 3 written quotes
>100000 - tender proces

Company policies should control such processes. If an appropriate delegation policy exist, then the process should be aligned to the delegation policy. Therefore it is key that the SCM (supply chain management) guidlines should be followed to align our policies and processes to it.

Government:
< 5000 Petty cash - 3 Verbal quotations/fax etc.
>5000 to 30 000 3 hardcopy quotations - Cheapest price evaluation.
>30k <200k 3 hardcopy quotations - 80% price 20% equity
> 200k Tender 90% price 10% equity.

However our tender module can easily be customised to include anything ie functionality, locality or any such as evaluation criteria.

We implement a whole solution suite that totally eliminates or at the least gives full control and traceability on all exclusions etc. therefore eliminating fraudulent awards of contracts/quotations.
Username will be linked to a profile/s depending on his status ie. buyer or controller which will influence his ability to exclude, adjudicate and award tenders/quotations and to what amount a full audit trail is also available at any time. Suppliers in the quotation module are also rotated to facilitate equal opportunities to all suppliers in the supplier database.

etc etc etc

Nomatter what process to put in place please be cost effective because procurement is a money saving profession.

Dear Member

My suggestion is as below:

The procurement policies and procedure governs the purchase of such goods and services. Procedural lapses in public sector organization leads to serious consequences during auditing.

Regards

Nagarajan

Dear Ngarajan,
I quiet agree with you because the ethical conduct in purchasing and supply is in support of 100% accountability be it in private or public sector. In the same vein some organization if not all try to inculcate while formulating their policies and procedures.
Best regards,
Bennett.