The materials management team firstly receive a document requesting which materials are required by the customer. Currently, this is done over the phone and then all the information is written down and stored manually in categorised folders.
The decision is then made about what vendor to use, which is made by the worker handling the order. They can choose to use a new supplier or they can use a vendor they have used in the past. If the purchase is new, they must also ask for quotations.
The purchase order is then made. The worker has to complete the order forms by hand once they have been printed. They must keep a copy of this document as well as any communication and quotations, and store them in a folder which are categorised alphabetically. Any long term purchasing agreements are also kept with these documents. When a requisition is needed, a worker must physically check these files which are kept in a storage unit, however,…show more content… Both the company and the vendor will need to physically record the date of the order, the expected delivery date, what was purchased and the cost.
The vendor will then ship the product. This shipment is weighed and measured to determine shipping costs and wrapped with protection if determined its needed by the worker packing. Currently there is no warehouse management system in place as the warehouse never reaches full capacity. However, the products are split into groupings to make them easier to locate.
When the package(s) arrive, the goods receipt is put in the same folder as the communication and quotations. Information is then updated physically by a worker to confirm delivery. Once the packaged goods have been checked, the request is realised.
An invoice receipt is then received and processed against the purchase order. Payment to the vendor then must be made assuming there are no issue with the shipment received.
