Introduction

Items that are sold in an organization are manufactured or purchased. In this chapter, we will look at how to purchase Items in procurement. Let's start by looking at the procurement process.

The following diagram details the procurement process:

  1. Requester completes the requisition based on demand. Requisition creation can be automated through the Requisition Import program, based on demand from various sources. For example, drop shipments in Order Management and min-max planning in Inventory.
  2. The Approver approves the requisition.
  3. The Supplier is selected based on business sourcing rules, including Request for Quotations (RFQ). If the supplier does not exist, a new supplier is created.
  4. The Procurement team (buyers) creates the purchase order.
  5. The Approver approves the purchase order. The purchase order is created and sent to the Supplier.
  6. The Supplier receives the purchase order, and fulfils the order by sending the Items. If the purchase order is for a service, the service is provided to the organization.
  7. The Receiver receives the Items and enters the receipts on the system.

Let's look at how requisitions are raised for Items.

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