Purchase order procedure

Related with my last post “The role of procurement of goods and services” (http://wp.me/p4mzlO-El), I would deepen in the purchase order procedure. According to the last session of Logistics to design a warehouse it is necessary to set two different sets of data:

  1. How much do we store?
  2. How many movements per hour do we need?

As a result for reflection of the questions introduced before, I recommend watching two videos:

On the one hand, “Our Brains Can Store 10x More Than We Thought!” See Video I (minute 0:00-1:09). This video present a first approach to storage in an accessible and intuitive way.

Video I. A first approach to storage. Source: <http://bit.ly/1O0x86Z [Accessed: 05/05/2016]

On the other hand, the case of Diageo presents their enabled ‘one-touch’ supply chain strategy. This strategy allows this company increase in Sydney DC capacity from 10,000 to 26,000 pallets, during peak periods improved distribution and purchase order procedure, enhancing stock control between 3-5%.  See video II (0:22-6:45)

Video II. Managing a purchase order. <http://bit.ly/1IHUwBE> [Accessed: 05/05/2016]

Following my post “3 Key tools for inventory management” (http://wp.me/p4mzlO-qi) it is possibly identify a wide variety of graphic tools as the Flow diagram, The ABC analysis or Geographical analysis which supported by information and communications technology (ICT) could integrate all the purchase order procedure throughout the company enhancing all the process, specially related with questions like: how much the company do store. Other complementary tools as bar-coding or Radio Frequency Identification (RFID) are presented in Image I.

bar coding

Image I. Supply chain performance. Source: Reproduced from <http://bit.ly/1TqbtB4>  %5BAccessed: 05/05/2016]

In addition, information systems could support planning, activities and control. For deepen in this topic see the post “Information system to support planning, activities and control” (http://wp.me/p4mzlO-ul). In order to improve the planning and control activities eProcurement introduces an innovative methodology to dynamize the flow of information and canalize the exchange relationship throughout the internet in a business-to-business (B2B), business-to-consumer (B2C) or Business-to-government (B2G) connection. This methodology for buy and sell supplies could be integrated with other systems like: Electronic Data Interchange (EDI) or Enterprise Resource Planning (ERP).

See an example of Purchase order procedure using eProcurement at Image II.


Image II. eProcurement purchase. Source: Reproduced from The University of New South Wales  [Accessed: 05/05/2016]

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